Thursday, September 26, 2019

Economic Inequalities in The United States Research Paper

Economic Inequalities in The United States - Research Paper Example The wish of most Americans is to bring the economic equality to an end. The society has been involved in the search of the possible social solutions to the increased inequality. The possible solutions include reducing taxes on the income of the low class group, increased taxes on the wealth and income of the high class group and adjusting the social security tax. Social nature of the problem Economic inequality exists in the United States due individuals having varied amount of money, power or even prestige. This problem creates different social classes among the people. Individuals in higher classes enjoy higher income and have continued to accumulate their wealth, while the lower class individuals in the society incur higher rates of taxes on their low income. As inequality in terms of resources widens, individuals with more wealth have become powerful and are be able to attain their goals. They will be able to accomplish their vested interests at the expense of the lower social cl ass individuals. They are also influential in the society and are powerfully in making different decisions. Inequality in income results from several causes, some of these causes are relatively clear, others unknown and others are still under dispute. The basic cause of household income inequality at a structural level is variations in the yearly hours worked per household. It can be broken down into the product of the total number of workers, the yearly weeks worked and the weekly hours worked. This is a very significant factor among individuals in the lower class level. However, it remains minor among individuals who belong to the higher class. Beyond the total hours individuals have worked, income inequality arises out of; the variation of the income rates per hour and the income which has not been earned, these differences is mainly due to differences in the education level. Income inequality is common in the United States due to the variation of an individual position in terms of responsibility, its importance and the complexity. Income remains to be a common form of compensation. In most cases the market value is reduced by abundant supply hence, income is increased significantly by the possession of scarce skills. The most common source of income among the lower class individuals in America is not occupation but the government welfare. Causes of the problem There are several causes of economic inequality in the United States. These include; difference in the individual’s wealth and income, most individuals depends on the income they get from their jobs. Others however, benefits from both their job’s income and their wealth. The big problem is that those with higher sources of income get larger percentage of increase than those with little income. The wealthy are able to accumulate their wealth and income for several years unlike those with little income and no wealth. This creates a wide gap between the two groups of individuals. Those who are wealthy are in a position to vie for political offices and invest more money in order to win. They will also be able to interact with other individuals of the same class and who also have similar power and interests. Another cause of inequality in the capitalistic society is that there is an existing belief that the government influence has to be maintained at a minimal level (Sen and Foster1997). When the

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