America is known to be one of the highest economies in the world but what many people do not know is that the number of poor people in the country is still on the rise. Even up until today income inequality in this country is still rising steadily. So for those who are interested to know, here are some facts about the income gap in America.
Now before discussing the economic situation of this country, it is very important to first define the meaning of income gap. Now in a nutshell, income gap is the big gap in equality between the number of rich people and the number of poor people in a country. If one would put it in easier terms, this would be the income bracket.
Now one would probably be more than familiar with the saying that the rich are getting richer and the poor are getting poorer. Now this is actually happening in America right now as majority of the wealth of the country is actually being taken by the rich. The middle class will also get a share but a low one, and the poor will be left with nothing.
Of course it is also very important to know as to why this would be the case. Now in a study that was made by the Organization for Economic Cooperation and Development, they studied the wealth inequality situations of eighteen countries between the years 1975 and 2007. The country wherein the rich had the most benefits was indeed the United States.
Now the reason as to why this is the case is simply because the US is a free market. Being in a very democratic country, the US supports the existence of a free market. Due to them being a free market, the wealth distribution among the people is not monitored by the government and the market is left alone to do whatever it wants.
Of course this would raise the age old question as to whether this is actually a good thing or a bad thing for the country in the long run. Now most people would argue that people should earn just as much as they would work because it is fair. If a person would get their fair share of profits, then they will actually be more motivated to work and their spending power will increase.
On the other side of the coin, some economists would argue that it is unhealthy because having a high poverty rate and unemployment. With all the wealth being wealth being tipped at the rich people, the poor people do not have much spending power. When this happens, the country will not be able to benefit from all the population which is bad for the long term.
So as one can see, this income inequality is one of the controversial issues that have sprung up in the US. Clearly many people still have the mindset that people should earn as much as they work. However, it can also be seen that as the unemployment rate in the country goes up, the economic growth in the long term may take a turn for the worse.
Now before discussing the economic situation of this country, it is very important to first define the meaning of income gap. Now in a nutshell, income gap is the big gap in equality between the number of rich people and the number of poor people in a country. If one would put it in easier terms, this would be the income bracket.
Now one would probably be more than familiar with the saying that the rich are getting richer and the poor are getting poorer. Now this is actually happening in America right now as majority of the wealth of the country is actually being taken by the rich. The middle class will also get a share but a low one, and the poor will be left with nothing.
Of course it is also very important to know as to why this would be the case. Now in a study that was made by the Organization for Economic Cooperation and Development, they studied the wealth inequality situations of eighteen countries between the years 1975 and 2007. The country wherein the rich had the most benefits was indeed the United States.
Now the reason as to why this is the case is simply because the US is a free market. Being in a very democratic country, the US supports the existence of a free market. Due to them being a free market, the wealth distribution among the people is not monitored by the government and the market is left alone to do whatever it wants.
Of course this would raise the age old question as to whether this is actually a good thing or a bad thing for the country in the long run. Now most people would argue that people should earn just as much as they would work because it is fair. If a person would get their fair share of profits, then they will actually be more motivated to work and their spending power will increase.
On the other side of the coin, some economists would argue that it is unhealthy because having a high poverty rate and unemployment. With all the wealth being wealth being tipped at the rich people, the poor people do not have much spending power. When this happens, the country will not be able to benefit from all the population which is bad for the long term.
So as one can see, this income inequality is one of the controversial issues that have sprung up in the US. Clearly many people still have the mindset that people should earn as much as they work. However, it can also be seen that as the unemployment rate in the country goes up, the economic growth in the long term may take a turn for the worse.
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