Social InCome Inequality

Liliana Almanzar

Mrs.Hewitt-12-2

Economics

January 14,2014

Income Gap

During the 1970's the income inequality began to expand in the United States. "The trend spread to Europe by the late 1980's, affecting even countries with long egalitarian traditions by the start of the new century"( Tyson). A major social problem in America today is inequality of the income.The supply-siders argued that tax rates had become high enough to affect growth and destabilize the economy. In the years 2008 and 2009 a great recession occurred. The income inequality reached all-time highs in the United States and many developed countries. The recession caused conditions to worsen everywhere. This effected young adults entering the labor market. "Income inequality refers to the gap between the rich and the poor. The United States has the most unequal income distribution in the industrialized world, and it is growing at a faster rate than any other industrialized country" (Eitzen & Leedham, pg. 37). The main reason why the income is not distribute equally is because of the gap between the social classes.

The four major classes are the capitalists, managers, small entrepreneurs and the workers. Every social class in has its certain power. A persons educational opportuunitues , housing , and clothing depend on their class. This is a refelction of their income. "A person does not gain any class or power without their income being taken into consideration" (Souray24). The problem is that there is class inequality.This prohibits people to earn an equal income."Typically the working class is unable to afford a luxurious lifestyle because they have less access to life's goods due to their lower income" (Feagin & Feagin, pg. 36).They don't have the same lifestyle as someone higher up on the social ladder. "The capitalists consist of top corporate executive; the managerial class consists of the managers, the small business class is your small risk-taking entrepreneurs and the working class is both white and blue collar workers"(Souray24). The income of these four major classes go from high to low respectively. The reason why there is an unequal income gap is because the top positions are held by those more qualified and