Good Example Of Essay On Wealth And Inequality
Wealth is unequally distributed. According to Piketty (522), the poor have less than five percent of the wealth while the one percent of the wealthiest people own majority of the wealth. President Obama has proposed a rise in the minimum wage and termination of tax loopholes that allow the wealthy to go scot free. Mayor Bill de Blasio of New Yolk proposed to pay for preschool program for the poor with money obtained from taxing the wealthy. The conservative economists are against these proposals, by claiming that these will infringe on entrepreneurship and suffocate investment by the wealthy that create jobs for the poor. Notably, inequality stems far beyond these roots. The “Wealth and Inequality” article by Glazer shows that the rich have been getting rich faster during this period of recession (Glazer 337). This topic is making headlines all over the world. According to the anti-poverty Oxfam, the wealth of the richest eighty-five billionaires in the world equals all the wealth belonging to the poor of the world. Wealth distribution shows an astounding inequality in the world where the middle class and the poor struggle while the rich get richer. The wealth gap is worsening and is threatening the political and financial stability of nations. According to Galbraith of University of Texas, people need to be concerned about plutocracy (government of the wealthy) which arises from inequality because it is not a good thing.
Scott Winship of the conservative Manhattan Institute thinks that this fuss about income inequality is just but for the moment, and it will disappear when the recession subsides, and unemployment goes back to five percent. This should not be the case, the issue of wealth and inequality should be addressed promptly in light of the chaos a plutocratic state may revolutionize in future. Americans should not only be concerned about social inequality but also income inequality. Imagine having to deal with this issue of income inequality every time there is a recession. The issue should be addressed by the world once and for all for it threatens the very fabric of democracy. Critics argue that imposing confiscatory taxes on the wealthy will infringe on economic growth, and the wealthy getting richer does not affect the poor since an economic growth means benefit for all. In contrast, we should focus on providing quality educations to all, mentoring entrepreneurs and enhancing our competitive edge in the manufacturing industry. Government policies should seek the wellbeing of all by strengthening unions and financial markets oversight and putting in place remuneration regulations. In light of global competition and a more free labor market, high taxes will affect economic growth. Although, some inequality is unavoidable in an economy moving from agrarian to industrialized economy, it is crucial that the gap is not growing rapidly wide. In addition, income inequality cannot be said to hamper economic growth directly. However, a wide gap of inequality should be addressed. Lower inequality may mean faster recovery from recessions and faster and more durable economic growth.
Galbraith, James. Inequality and Instability: A Study of the World Economy Just Before the Great Crisis , Oxford University Press. 2012. Print
Glazer, Sarah "Wealth and Inequality" CQ Researcher 18 Apr. 2014. Web. 4 Mar. 2015
Oxfam, Jan. 20, 2014 “Working for the Few”, 226 Causeway St., Boston, MA 02114 800-776-9326
Piketty, Thomas and Goldhammer, Arthur. Capital in the Twenty-First Century. Cambridge Massachusetts. The Belknap Press of Harvard University Press. 2014. Print.
Winship, Scott. Inequality Testimony before the Joint Economic Committee, E21: Economic Policies for the 21st Century, New York. Manhattan Institute, 2014. Print.