Economic Inequality as One of the Primary Factors That Stagnates America From Succeeding

Little information is known with regards to the issue of economic inequality and how America is being affected by it. Certainly, there are several other economic problems that flow under the bridge, which perhaps makes this issue unnoticeable. However, economic inequality is one of the biggest challenges that hinders or stagnates America from succeeding. This study goes forth to identify and discuss why economic inequality is one of the biggest economic problem in the USA.

Economical problems in the Americas society are simply inevitable. Nonetheless, this does not mean that the entire nation should rest while the challenges facing them override their priorities. While there is a strong desire to claim that unemployment is one of the greatest economic challenges that America is facing, the thought of income inequality is certainly unbearable.

Over the years, this is something that has hit headlines and it is being debated about all over the world. The gap between the rich and the poor is growing wider. Something needs to be done to remedy the economic problem as there are negative challenges associated with such economic inequality. This research paper goes ahead to look at this issue and that it would discuss some of the most recommended actions to take to help in savoring the economic problem. Without doubt, economic inequality is an alarming economic challenge that has greatly affected the Americas economy in a negative manner.

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Economic inequality refers to a scenario where the rich get richer at the expense of the poor (sevenpillarsinstitute.org). This leads to a scenario whereby the inequality gap is widened. This means that the income earned by the poor is incomparable to what the rich are earning. As a result of this, there are negative effects experienced in the economy.

One of the major negative effects of economic inequality is economic instability. A country with a high-income disparity levels is normally associated with economic instability issues such as inflation and huge debts (equalitytrust.org). For example, when the wages of low paid workers are brought down, this would greatly discourage them, thus leading to dwindling productivity. According to equalitytrust.org, the effect of this has got a greater impact than even increasing the wages of a highly paid worker in terms of productivity. Therefore, increasing wage inequality leads to low productivity (equalitytrust.org).

Growth throughout the entire economy is also affected in a negative way. The rate of economical growth stagnates as a result of economic inequality in America. The rise in the inequality gap implies that poverty would also be rampant throughout the nation. This means that public health, crime and even education are some of the issues that would appear as a burden to America. A recent dilemma that affected the poor was rising tax rates that favor only the rich. This widens the inequality gap, hence leading to even more problems that what is being faced at the moment.

Political inequality is yet another negative effect arising from economic inequality. The varying wealth distributions in America would imply that political power is also saturated in a particular group of people (sevenpillarsinstitute.org). Individuals that are considered to be extremely wealthy end up formulating laws that would favor them to remain in power. The effect of this is that the poor or the working class category of people is denied equal opportunities in the society. For instance, in relation to education, they end up being less educated as they lack the opportunities that the rich are getting. Certainly, there is no improving from a society with such a disease. As a matter of fact, economic inequality would ultimately breed corruption in the society.

It is also important to stop and think about the middle class people in the Americas society. They are the individuals that drive the country out of debt. The sad thing is that with the rising economic inequality, it might reach a time where there are only the rich and the poor social classes (takingnote.blogs.nytimes.com). This leaves the society wondering on the ways and means it would be paying for its huge debts. Without the middle class people, it is quite likely that the economical growth would stagnate.

Breaking away from the economic inequality chains would do the country more good than harm. One of the ways of doing this would be to break the existing social barriers in the society (cnn.com). It is high time that people should come out of the income bubble that they have created for themselves. The mentality that there is a certain group of people that are better than others should be erased from the mind.

Improvement of public schools is yet another way in which the economic inequality gap would be reduced. Education is the key to success. Undeniably, it would help people bridge the gap between the rich and the poor only if this education is unified to even benefit the poor.

The minimum wage ought to be raised a little bit higher. Keeping in mind that there is a high inflation rate, it is quite impossible to maintain a high standard of living. This demands that the minimum wage should be raised in a bid to ensure that even the poor can live happy lifestyles through their small earnings.

Lastly, adjusting the existing tax policies would also warrant that the rich pay more taxes than the poor. Certainly, this is an effective way of making sure that the poor get more money to spend and improve their lives.

Economic inequality is an alarming economic challenge that has greatly affected the Americas economy in a negative manner. There is no clear direction that the nation is heading to with such a burden on its shoulders. This therefore means that something should be done to bring the inequality gap down. The effects are scary bearing in mind that the rich get richer while the poor get poorer. The growth of the economy is considerably slowed down while political affairs are also meant to benefit the rich. Raising the minimum wage would be an ideal way of proving to the entire world that this gap can be reduced. Education systems also need to be improved and made accessible to all American citizens. This is one of the best ways in which people would achieve the American dream that they have been mulling over.

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