Inequality In The United States: An Economic Analysis

The marketing crashes during 1928 and 2008 are symbolic as they prove that if they were not present then income inequality would have widened enormously. According to Reich, we are all vital when understanding the fundamental of the social class. We each play a role and the middle class is crucial to a stable economic system. How is it possible that the rich keep getting richer and the middle class just stay at their current class? Foremost, it is inevitable to live in US without inequality, people are always productive which evidently leads to capitalism. However, when does inequality become a problem? Reich states that US has the most unequal inequality. By comparing the earnings of the top one percent with middle typical worker, within the years of 1978 and 2010, he provides with gaping information. In 1978, a typical worker would make 48,302 where a typical 1% worker would make 393,682. Shouldn’t income increase in the future? In 2010, a typical worker would make 33,751 where a typical 1% worker would make 1,101,089. The sinking middle class no longer has enough purchasing power to keep the economy growing and creating sufficient jobs. The share of working-age
On the contrary, the one percent rich spend on their necessities too, but the only distinct difference, that is worth mentioning, is that humans only need certain items to live on daily. Likely, the rich consume and spend the same amount as the working class. However, America’s rich only keeps accumulating more wealth compared to the working class because they earn more and don’t need to spend more so they just save. America’s rich are accumulating not just more of the country’s total income and wealth, but also the political power that accompanies money. With this power they are able to reduce their own taxes and get corporate welfare for their