It is common knowledge that america is one of the superpowers in the world and has one of the biggest economies. What most people do not realize to see is that the income gap in america is really big even if the country is seemingly very prosperous. Here are some facts and information that would be discussing this economic issue.
Now before discussing the economic situation of this country, it is very important to first define the meaning of income gap. Now in a nutshell, income gap is the big gap in equality between the number of rich people and the number of poor people in a country. If one would put it in easier terms, this would be the income bracket.
Now one would probably be more than familiar with the saying that the rich are getting richer and the poor are getting poorer. Now this is actually happening in America right now as majority of the wealth of the country is actually being taken by the rich. The middle class will also get a share but a low one, and the poor will be left with nothing.
Now of course in order to study this, economists studied the wealth generated by several countries. They take a sample of eighteen countries and studied how the distribution of wealth are for these countries ranging from the year 1975 up to the year 2007. Now they were able to conclude from the results that the United States was the country wherein the rich benefited the most.
Now the US is indeed known to be the epitome of a free market in the entire world. With being in a very democratic and free country, it is definitely true that they have a free market that can really let the people do whatever they would want. Because of them being in a free market like this, the wealth generation of the people are not really monitored.
Of course one will now tend to ask himself whether this is actually a good thing or a bad thing. Now the common argument in this situation is that the powerhouses like the CEOs and the firms are actually contributing to the economy because they are wealth generators. They will be able to contribute to a better economy through exports and would also contribute to bigger taxes for the government.
Of course there is also the other side of the story which claims that a high rate of poverty or unemployment will not be good for the economy. Now the thing about this is that with an unemployment rate, the people will not have much spending power. Of course when this happens, the country will not be able to get taxes from everyone.
So as one can see, this income inequality is one of the controversial issues that have sprung up in the US. Clearly many people still have the mindset that people should earn as much as they work. However, it can also be seen that as the unemployment rate in the country goes up, the economic growth in the long term may take a turn for the worse.
Now before discussing the economic situation of this country, it is very important to first define the meaning of income gap. Now in a nutshell, income gap is the big gap in equality between the number of rich people and the number of poor people in a country. If one would put it in easier terms, this would be the income bracket.
Now one would probably be more than familiar with the saying that the rich are getting richer and the poor are getting poorer. Now this is actually happening in America right now as majority of the wealth of the country is actually being taken by the rich. The middle class will also get a share but a low one, and the poor will be left with nothing.
Now of course in order to study this, economists studied the wealth generated by several countries. They take a sample of eighteen countries and studied how the distribution of wealth are for these countries ranging from the year 1975 up to the year 2007. Now they were able to conclude from the results that the United States was the country wherein the rich benefited the most.
Now the US is indeed known to be the epitome of a free market in the entire world. With being in a very democratic and free country, it is definitely true that they have a free market that can really let the people do whatever they would want. Because of them being in a free market like this, the wealth generation of the people are not really monitored.
Of course one will now tend to ask himself whether this is actually a good thing or a bad thing. Now the common argument in this situation is that the powerhouses like the CEOs and the firms are actually contributing to the economy because they are wealth generators. They will be able to contribute to a better economy through exports and would also contribute to bigger taxes for the government.
Of course there is also the other side of the story which claims that a high rate of poverty or unemployment will not be good for the economy. Now the thing about this is that with an unemployment rate, the people will not have much spending power. Of course when this happens, the country will not be able to get taxes from everyone.
So as one can see, this income inequality is one of the controversial issues that have sprung up in the US. Clearly many people still have the mindset that people should earn as much as they work. However, it can also be seen that as the unemployment rate in the country goes up, the economic growth in the long term may take a turn for the worse.
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