Cause Of Poverty And Inequality In The United States
Bryce Sims
Poli Sci 101
5 March 2017 Poverty and Inequality in the United States Capitalism demands that “wealth is on top and debt is on the bottom” (Salon.com) Income inequality rates are higher in the United States than any other developed democracy and the rates are growing. Large corporations and the top 1% get breaks that the middle and lower class do not. Such as tax breaks, bailouts, and bankruptcy laws being loosened. It can be argued that capitalism is the number one cause of poverty. In order for capitalism to work, someone has to lose. It is very competition based. “Capitalism requires a loser for every winner.” (collective-evolution.com) Small businesses must compete with one another along with large corporations.
It is difficult for small businesses to compete with large companies. Take cameras for example. Purchasing a higher end camera from Best Buy will save you roughly $200-$300 over purchasing the same exact camera from a local family owned camera shop. Most of us would prefer to support the small business, but simply cannot afford it. So the small business loses the sale. If this happens often enough, they can go out of business. Capitalism is often referred to as survival of the fittest. It seems as though people in power are afraid that if they share that power (or money), that they are going to lose power. Things like healthcare is more expensive in America than it is in other countries. We also do not have universal health care. According to politicususa.com, Americans do not want to pay higher taxes even if it means receiving universal healthcare. America also has a lower minimum wage than many other developed countries. In 2015, the minimum wage in Australia was $15.96, compared to the United States’ $7.25. (attn.com) Denmark, Germany, Australia and France all have a minimum wage that is much higher than ours.
Poli Sci 101
5 March 2017 Poverty and Inequality in the United States Capitalism demands that “wealth is on top and debt is on the bottom” (Salon.com) Income inequality rates are higher in the United States than any other developed democracy and the rates are growing. Large corporations and the top 1% get breaks that the middle and lower class do not. Such as tax breaks, bailouts, and bankruptcy laws being loosened. It can be argued that capitalism is the number one cause of poverty. In order for capitalism to work, someone has to lose. It is very competition based. “Capitalism requires a loser for every winner.” (collective-evolution.com) Small businesses must compete with one another along with large corporations.
It is difficult for small businesses to compete with large companies. Take cameras for example. Purchasing a higher end camera from Best Buy will save you roughly $200-$300 over purchasing the same exact camera from a local family owned camera shop. Most of us would prefer to support the small business, but simply cannot afford it. So the small business loses the sale. If this happens often enough, they can go out of business. Capitalism is often referred to as survival of the fittest. It seems as though people in power are afraid that if they share that power (or money), that they are going to lose power. Things like healthcare is more expensive in America than it is in other countries. We also do not have universal health care. According to politicususa.com, Americans do not want to pay higher taxes even if it means receiving universal healthcare. America also has a lower minimum wage than many other developed countries. In 2015, the minimum wage in Australia was $15.96, compared to the United States’ $7.25. (attn.com) Denmark, Germany, Australia and France all have a minimum wage that is much higher than ours.