Wealth Inequality in America
Wealth inequality is one of the biggest economic challenges facing the United States today. It has been a major issue for decades, but has been pushed to the forefront of political and economic discourse as a result of the recent financial turmoil and global recession. The increasing prevalence of wealth inequality in the United States has been documented in both government and independent studies, prompting concern over the long-term implications of this negative social trend.
Income inequality in the United States has been trending upward since 1971, according to the U.S. Census Bureau. Today, the top 20 percent of households hold approximately 84 percent of the wealth, while the bottom 20 percent hold only 3 percent of the nation’s wealth. This massive disparity is of particular concern because the wealthiest individuals in the country seem to control such a disproportionate share of the nation’s financial resources.
The rising level of wealth inequality has been attributed to several factors, including changes in taxation rates and access to investment opportunities favoring the already wealthy. In addition, the shift to a global economy since the late 1960s has had an impact on the ability of low and middle-income households to accumulate wealth. The current economic structure has been seen as putting those at the bottom of the economic ladder at a disadvantage, as it is increasingly difficult for them to improve their economic standing.
The consequences of wealth inequality reach far beyond economic divisions, impacting everything from healthcare access to educational opportunities. For example, those who are already wealthy are more likely to have better access to healthcare, increasing the already staggering medical inequality in the US. In addition, those from lower-income households often struggle to pay for the cost of a college education, making it even more difficult for them to gain access to the same opportunities afforded to more affluent individuals.
To counter this widening wealth gap, a number of proposals have been put forth. The most popular recommendation has been an increase in progressive taxation, with higher taxes on those with higher incomes. This would help to level the playing field, allowing more individuals to access the same opportunities regardless of their wealth. Another suggestion is to increase access to educational opportunities, making it easier for those from lower-income households to attend college. The problem of wealth inequality is too deep-rooted to be solved overnight, but by taking the necessary steps to address decreased economic opportunities, we can make the country a fairer, more equitable place for all.
