Income Gap Threat

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The Income Gap as a Threat to Equality, Liberty, and the Pursuit of Happiness

“All men are created equal”. These are the famous words with which the US

Declaration of Independence begins. Our Founding Fathers envisioned a nation in which all

citizens should have equal possibilities and opportunities to pursue happiness and secure a

living for themselves. However, in recent decades, this equality has come under serious threat

by a new form of economic inequality. Statistics show that the income gap between the rich

and the middle class has widened at an alarming degree during the last 30 years. While the

income of the top 1% has tripled since the 1970s, that of the middle and lower classes has

only risen very modestly in comparison. …show more content…
This situation ultimately leads to the

income gap steadily increasing, because the rich become richer and the middle class becomes

poorer, dividing our society into two halves.

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The ever increasing income gap does not only affect certain segments of the

population, but the economy of our nation as a whole. Income inequality is a major hindrance

for a stable and reliable economic growth. Societies which manage a narrower income

gap enjoy longer economic expansions, while high income inequality makes a nation’s

economy more vulnerable to both financial crisis and political instability. “Income inequality

can exert a significant drag on effective demand” (Rauch), leading to increasingly large

segments of middle class consumers unable to afford as many luxury and essential products

and services. Despite the fact that “consumption inequality has increased less than income

inequality” (Bryan 113), this trend still has an overall negative impact on both …show more content…
If we want to insure that

future generations also have the liberty and opportunities to pursue and attain happiness, then

it is necessary to change the current course towards more equality. Only then will it be insured

that the US remains a beacon of liberty and equality for the world.

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Sources cited:

Amadeo, Kimberly. “Income Inequality in America. Causes of Income Inequality,” About

News, February 14, 2014, accessed December 18, 2014, http://useconomy.about.com/ od/

suppl1/a/income-inequal.htm

Bradley, Anne. “Why Does Income Inequality exist? An Economic and Biblical

Explanation,” IWEF Resources, accessed December 18, 2014, http://tifwe.org/ resources/

income-inequality/

Bryan, Kevin A., and Martinez, Leonardo. “On the Evolution of Income Equality in the

United States,” Economic Quarterly 94, no. 2 (Spring 2008): 97-120. Print.

Cooper, David, and Hall, Doug. “Raising the federal minimum wage to $10.10 would
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