thing seems to be rippled, and only a few look concerned about the American problems, as everybody assumes that things are headed in the right direction. The scope of this essay is therefore based on the common problems that are likely to end the American dream, of which income inequality is the biggest problem of all the American problems.
Many people have been of the opinion that racism is the biggest problem facing America. The bold prediction has been that the rising income inequality will be the most crucial political battleground for the next few decades (Cal et al). Surprisingly, most of the American problems have resulted from income inequality and this problem has been there for so long. Economists have assumed the income inequality problem for so long despite its consequences. The gap between the rich and the poor has been increasing on a daily basis. The rich are spending more simply because they have more cash to spend. Their spending has been shifting the frame of reference that shapes the life of those who are in lower economic class, travelling in overlapping social circles. The middle class also spends more, shifting the reference frame for the group just below it, and the income ladder continues this way up to those living below the poverty line. Such cascades have made it more expensive for middle income earners to achieve basic financial goals.
Taking a look at figures such as the income that accrue to the top 1% increased from 9% in 1977 to 20% in 2012. The richest 0.1% used to control 7% of wealth in 1980 and 22% of the wealth in 2013. Meanwhile, many people have been of the opinion that the only way of reducing this income inequality would be through increasing taxes on income and wealth. Unfortunately, the rich will not allow this to happen. Income inequality has caused a snowballing effect on the distribution of income, as there is a high rate of saving top incomes. As a result, wealth has been concentrating at the top. The rising income ...
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