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Economic Inequality In 1930s America

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The concept of economic inequality is the uneven distribution of wealth, income, and resources among individuals and society. This disparity encompasses various economic aspects such as wages, property ownership, access to education and healthcare, and opportunities for advancement. Economic inequality reflects differences in well-being and living standards, with significant implications for social, political, and economic stability. Factors contributing to this inequality include education levels, skills, technology, government policies, taxation, and social structures. Excessive economic inequality can lead to social unrest, limited mobility, and hindered growth, while moderate levels can encourage innovation and entrepreneurship. Addressing …show more content…

The Great Depression of the 1930s was a transformative period in the realm of economic inequality. President Franklin D. Roosevelt's New Deal endeavors aimed to combat the devastation of the Depression by introducing a range of reforms designed to oversee financial markets, offer assistance to the jobless, and establish social welfare programs. According to history.com, Roosevelt established The New Deal. “The New Deal was a series of programs and projects instituted during the Great Depression by President Franklin D. Roosevelt that aimed to restore prosperity to Americans. When Roosevelt took office in 1933, he acted swiftly to stabilize the economy and provide jobs and relief to those who were suffering” (History.com Editors, 2023). These actions, such as the initiation of Social Security and the enforcement of minimum wage regulations, represented a notable step towards increased governmental involvement in fighting economic inequality. Economic inequality affects modern society in numerous …show more content…

These gaps not only harm individual well-being, but also obstruct overall economic growth and stability. Economic inequality could negatively impact political processes by skewing power dynamics and reinforcing established interests. Additionally, high levels of economic inequality can lead to people feeling misled and disappointed with the political and economic system, resulting in increased social and political instability. However, it is important to acknowledge that moderate levels of inequality can drive innovation and economic growth by encouraging investment and entrepreneurship. Despite this, addressing the negative impacts of extreme economic inequality is necessary for proactive policy measures to promote a more fair and inclusive society. There is ongoing controversy regarding the government's role in addressing economic inequality. Supporters of laissez-faire capitalism believe in minimal government involvement, trusting that market forces will ultimately create the best possible

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What is economic inequality? Economic inequality is classified as the gap between the rich and poor, or income inequality. Therefore, income is not distributed equally among individuals in a group, in a population, or among countries. I believe that economic inequality might be the biggest threat and a challenge to democracy in today 's society. For example,economic inequality and in today 's contemporary society and in the past has been a topic which has never been resolved and poses the biggest risk to the global economy.

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Inequality can still happen in this state when there are situations where the law of one price is not held. When prices are not equal for everyone, people drive towards the low-wage companies in order to buy their needed goods, and preserve their wealth. Companies try to prevent the high cost of production in order to become successful, which is why many of them turn to other countries to produce their goods, affecting the inequality for all. Policy that I believe deals with the situation of inequality would be to improve taxes, the price of goods, and job opportunities. This may later on lead in a direction to that will make taxes fair for all people, consumer spending to be reasonable, and the majority of people having jobs, which result in equality for all.

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‘No one should be four times richer than the poorest member of the society’, expressed his view famous ancient philosopher Plato (cited in Atkinson, 2015, p 13). Probably, since the start of the Industrial Revolution, 19th century, economic inequality between people increased excessively. At present, surprisingly, the 62 richest billionaires’ wealth is equal to that of half of the poorer population of the world (Davos, 2016). It means that minority of the people are enjoying luxury life while the others are struggling even to find a piece of bread to survive in this unequal world. Now the gap between rich and poor is enlarging considerably; issues associated with inequality are getting worse constantly and the need to reform revealing

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Democratic political systems form the foundation for the redistribution of power and pursuit of egalitarianism. They offer the majority a voice through formal channels of collective decision-making, based on: free and fair elections, universal suffrage and political accountability, (Huber, et al. , 1997:323). Therefore, considering that inequality originates from the arenas of societies’ stratification structures and the economic markets, democratic political systems have to manoeuvre beyond the political and in to the economic and social arenas to curtail inequalities. This essay will discuss the issue, are socio-economic inequalities more likely to be tackled in a democratic political system?

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“Research shows that the whole of human life existing inequalities and lack of contact between social mobility. ”(Blanden, 2009) People’s well being may direly depend on income inequality People 's well being may directly depend on income inequality because they think that a highly unequal society is unfair, or because the utility loss is due to the low status of poor countries may gain because of higher status than practical wealthy. “Although many people think that income inequality is a social disease, and to understand that income inequality has many economic benefits is very important, is not the result of damage to a well-functioning economy”(Ellyatt, 2013)

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