Inequality in America and why it exists
“Falling wages, inflation and an all-time low social mobility in the United States has meant that the rich continue to get richer while the poor get poorer” (Ryscavage, 2009). The middle class in the U.S.A is almost vanishing, leaving behind only two categories of people; the rich and the rest. According to World Poverty Organization (2009) “income inequality has more to do with monetary policy, central bank and a legal/political system that favors big businesses and the rich at the expense of the low-income earners”. The total income going to the top earners, who only constitute 1% of the population, has gone up to 16% from 4% in six years.
America is still considered the richest nation in the world. Unfortunately, 90% of the country’s wealth is owned by 10% of the country’s population. The rich have too much influence and power over the economy and financial policies, which they use to benefit themselves while the poor remain helpless. In the last ten years, the income of the rich has gone up more than 100% while that of the poor continues on a downward trend. It is hard for the poor to progress since they have no access to high-quality education, which means that they are disadvantaged in the job market. They have no access to high-quality medical care, which renders them inactive for longer when they fall sick. The poor and middle class also have no access to proper financial education, making it hard for them to manage the little they have in a professional manner.
Poverty definitions
Legally, “poverty law is aimed at eliminating poverty in the population and addressing the needs of the poor” (NPR Media, 2010). The law is supposed to address issues such as homelessness, lack of quality medical care, education, and other resources, which the poor have a hard time accessing. The federal government has an official measure of poverty, which they use to define the level of poverty in the country. The measure was put in place by the Office of Management and Budget. Unfortunately, the law has done very little to ensure equal accessibility of justice and in some cases democracy.
Socially, the poor have a very low quality of life. They have minimum resources, very few options, and many times they have to comply with the prevailing forces (Heckman, 2004). As a result, social problems such as crime and violence arise. Since poor people have no voice in a country, they reap minimum benefits from community projects such as infrastructure and other forms of development. Their potential is not utilized due to social and economic isolation. They lack self-sufficiency and are therefore left in very vulnerable positions. Their social mobility is at a minimum level since education and wages play an important role in social growth.
Poverty cycle
Unfortunately, children from poor backgrounds tend to follow the same trend, what is referred to as the poverty cycle. These children have no access to good education, meaning they don’t have equal opportunities in the labor market. Lack of a good education also means they lack proper exposure and therefore, they lack the ability to implement any economic ideas they might have. As a result, they end up poor and so do their children, and the cycle continues. The idea of an American dream then does not make any sense to this class of people. They constantly worry about basic needs and have no time or ability to make or acquire more than that.
Culture of poverty
Unfortunately, the culture of poverty is slowly developing in America. People are getting poor, wages are getting lower, the gap between the rich and the poor keeps getting bigger, the number of illegal immigrants is on the rise and house value is on a downward trend. The results have been a big level of unemployment, high levels of debt, and the inability to afford proper education and health care. With too many unemployed people, the labor markets take advantage of the situation and pay very low salaries. The current generation is experiencing major financial challenges and struggles. It is feared that the high levels of debt and other financial problems will be carried over to coming generations, creating a cycle that may be hard to break.
Reference list
Heckman, J.J. (2004). Human capital capital development. Economic Development, 22 (24), 89-133.
NPR Media. (2010).Haves and have-nots: Income inequality in America. Web.
Ryscavage, P. (2009). Income inequality in America: An analysis of trends. Armonk, N.Y.: M.E. Sharpe.
World Poverty Organization. (2009). Social Poverty, religions or governments rule. Web.