Income inequality Essay

Submitted By ghgus0608

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Pages: 2

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Since the financial crisis of 2008, the gap of income disparity between the rich and the poor has been exacerbated. Yet, many Americans have a very little understanding of how concentrated the wealth distribution is. Professor G. William Domhoff writes in his book, Who Rules America, that “ most Americans (high income or low income, female or male, young or old, Republican or Democrat) have no idea just how concentrated the wealth distribution actually is.” (Domhoff) His argument is that people in general lack understanding of how wealth is distributed in society. According to a study, its 5,522 respondents answered that “the American wealth distribution would resemble one in which the top 20% owns about 60% of the wealth.” (Norton and Ariely, 4) However, the statistics show that the top 20% has about 85% of the wealth. (4) This supports my argument that people have a little knowledge of how polarized the distribution wealth is. The growing gap of wealth distribution between the rich and the poor hurt growth of economy. America is built on the idea of being a society where people can succeed by hard work. However, this idea called, “the American Dream” dissipates as the income disparity grows. Social mobility is a significant factor that measures the state of economy. On the one hand, the proof of high social mobility motivates workers to work harder to climb up the social ladder. On the other hand, Jamshid Damooei’s study asserts that “Americans raised at the bottom and

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