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Income Inequality Gap Analysis

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The current state of America`s economy is worrying the gap between wealthy and poor in constantly widening. According to Reich (2013), the middle class is earning less than ever before, while the wealthy are banking better revenues than they did in 1978. In terms of wealth, the poor are struggling in corrupt economy, while the rich enjoy establishing multinational companies. Due to changes in the legal provisions advising property ownership and employment insecurity, inequality is widening further with every day. Multinationals are willing to adopt any strategy that assures them tax eviction. The taxation policies are depriving the Nation opportunity to create more jobs. In addition, the cost of living has risen significantly. The inequality problem has meant that working hard does not guarantee ‘the American dream’. They are working harder but not achieving success, the middle class is considering budget restructuring. Their children require study scholarships and they are shopping for clothes in reuse …show more content…

Besides having to deal with frustration concerning career stagnation, the monies earned do not match the financial obligations. Inflation has made life more difficult by exaggerating the consequences of inequality. The tycoons in manufacturing and Wall Street are benefiting from the corrupted economy. Currently, the greatest beneficiaries of the economy are stockbrokers and financiers or bankers. The shareholders in multinational establishments are benefiting from a tax shift that ensures growth of their wealth at the expense of the middle class. Inequality is influencing the nature of interaction between productions and manufacturing. Aggregate demand for commodities has changed because the extents of disposable income are different from what was the case in prior years. the size of economy`s participants with reasonable pay has diminished exponentially resulting in demand

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Krugman writes, “the rich weren’t just getting richer; they were becoming a financial foreigner, creating their own country within a country, their own society within a society, and their economy within an economy.” 563. CEOs or people with an abundance amount of money can give money to politicians create laws or stop enforcing the laws to benefits the rich. Politicians who the Middle-Class and Lower-Class vote for favors the one that could help them and that’s the High-Class. Economic inequality is hurt the middle-class and the lower-class who already had a rough time getting a life.

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Americans are embracing facts of inequalities and wage control, which has been a drawback in the American economy in the past, yet new policies have reduced inequalities by passing a law back in 2007 to raise wages, that is “Congress passed the first increase in the minimum wage within a decade” (574). That same embrace has the middle class preparing for the future by planning new strategies to educate their children about the dangers of debt to income ratio, gaps between social equality, and political power among the wealthy gaps. Also, unbalanced monetary stimulants, which have no power of motivation for some whom are after the American

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