America is known to be one of the highest economies in the world but what many people do not know is that the number of poor people in the country is still on the rise. Even up until today income inequality in this country is still rising steadily. So for those who are interested to know, here are some facts about the income gap in America.
Now before discussing about this issue, it is very crucial to first have a clear understanding of the income gap. Now this gap is known as the inequality of the wealth distribution among the people that are in the country. Now when one would discuss about this issue, he would be looking at how much each class would be getting.
Now in America, it can actually be seen that the rich are clearly hogging all the money that is circulating in the country. It is for this reason that there are rich people as well as super rich people and a lot of slum areas in the country. Of course as for the middle class, they also get a share of the wealth generated by the country but most would still go to the rich.
Of course it is also very important to know as to why this would be the case. Now in a study that was made by the Organization for Economic Cooperation and Development, they studied the wealth inequality situations of eighteen countries between the years 1975 and 2007. The country wherein the rich had the most benefits was indeed the United States.
In order to know why this is the case, one has to take a look at the active US market. Now it is common knowledge that the market of this country is a totally free market as it is a democratic country. This means that the wealth that is being generated by the people is not really monitored as the government would have little involvement with the market.
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.
On the other side of the coin, some economists would argue that it is unhealthy because having a high poverty rate and unemployment. With all the wealth being wealth being tipped at the rich people, the poor people do not have much spending power. When this happens, the country will not be able to benefit from all the population which is bad for the long term.
Now by taking a look at some of the issues that would stem out from this one issue, it can be seen how this problem would affect the country. Now there are still those who believe that being fair is good for the country. Now there is also the other side that believes that the unemployment rate will stop the economic growth in the future.
Now before discussing about this issue, it is very crucial to first have a clear understanding of the income gap. Now this gap is known as the inequality of the wealth distribution among the people that are in the country. Now when one would discuss about this issue, he would be looking at how much each class would be getting.
Now in America, it can actually be seen that the rich are clearly hogging all the money that is circulating in the country. It is for this reason that there are rich people as well as super rich people and a lot of slum areas in the country. Of course as for the middle class, they also get a share of the wealth generated by the country but most would still go to the rich.
Of course it is also very important to know as to why this would be the case. Now in a study that was made by the Organization for Economic Cooperation and Development, they studied the wealth inequality situations of eighteen countries between the years 1975 and 2007. The country wherein the rich had the most benefits was indeed the United States.
In order to know why this is the case, one has to take a look at the active US market. Now it is common knowledge that the market of this country is a totally free market as it is a democratic country. This means that the wealth that is being generated by the people is not really monitored as the government would have little involvement with the market.
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.
On the other side of the coin, some economists would argue that it is unhealthy because having a high poverty rate and unemployment. With all the wealth being wealth being tipped at the rich people, the poor people do not have much spending power. When this happens, the country will not be able to benefit from all the population which is bad for the long term.
Now by taking a look at some of the issues that would stem out from this one issue, it can be seen how this problem would affect the country. Now there are still those who believe that being fair is good for the country. Now there is also the other side that believes that the unemployment rate will stop the economic growth in the future.
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