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The Price Of Inequality Book Review

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The Price of Inequality Name Institution The Price of Inequality In the past, the US was a nation with an upward mobility and was different from other European societies with rigid class divisions, the young could anticipate to lead better lives than the older people. Joseph Stiglitz in his book, The Price of Inequality: How Today 's Divided Society Endangers Our Future observes that the industrialization that is present in the Western world paves the way for better intergenerational mobility (Krupa, 2013). The author of the book has made various achievements during his life in the economic sector. He is an economist that won the Nobel Prize, served as a chairman of the Council of Economic Advisors during the Clinton era, …show more content…

The example that caught my eye was about the six inheritors to the Walmart wealth that have more wealth than thirty percent of the individuals that are considered to be poor in the economy. The statistics are more alarming when observed in examples that are closer home. For instance, only nine percent of the students in the specialized colleges come from the population considered poor. On the other hand, seventy-four percent of the population is deemed to be well off. It is clear social mobility is no longer the solution in the long-run (Krupa, 2014). Stiglitz refers to the studies that demonstrate that there is likely to be social mobility in America than in other industrialized nations. I believe that all these citizens should be informed about these …show more content…

They give a comprehensive historical evaluation of the role that economic and political institutions play in promoting sustained economic growth in different nations across the globe. In addition, a common aspect with stable economies is that they encourage dynamism, innovation, and change (Joseph, 2012). In essence, Stiglitz 's assertions are a documentation of the lack of these inclusive organizations in

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Many economists argue about the exact nature of the relationship of social mobility in the context of the modern economy. One such economist, Paul Krugman, negatively comments in his essay “The Death of Horatio Alger” on the decreasing social mobility among low-wage citizens in the United States. He claims that the American dream of advancement opportunities will diminish as the wealthy aim to prevent others from rising above them in the business world. Moreover, he labels America’s unequal society as a rigid “caste system” and opposes those who ignore the system’s lack of fairness to the lower class (134). Although Krugman strongly criticizes the inflexibility of economic mobility, his informal tone, biased perspective, and unjustifiable approach make his argument not only ineffective but also offensive.

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290 Words | 2 Pages

Paul Krugman author of the article “Confronting Inequality” stresses the inequality of our social classes in the United States, he uses statistics to demonstrate the staggering consequences of this inequality within our social classes. Krugman emphasizes the fact that a majority of our wealth is owned by about one percent of the population, which is leaving the middle and lower class at an extreme disadvantage. One example Krugman uses is education; children that have wealthy families, have a higher percentage of finishing college than those of lower income families, proving the statement that Krugman was accentuating, “Class-inherited class- usually trumps talent.” The parents within this middle to lower class have been exceed their financial

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Kaitlyn Johnson English, 008 September 29, 2015 Inequality Inequality has been a major problem all over the world. Not just with race or gender, but now ones' income puts them aside from others. and they are catorgarized. Gary S. Becker, a Noble laurete in economics, and Kevin M. Murphy, a professor at the University of Chicago and a recipient of a 2005 MacCrthur "genius" fellowship, believe that a higher education equals higher income. Paul Krugmam, a teacher of economics at Princeton and the city University of New York, uses people who have had an impact on America.

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Rent Seeking by an American Economist In the American Economist Joseph Eugene Stiglitz’ essay, ‘Rent Seeking and the making of an Unequal Society,’ he argues, with the help of examples, that most of today’s economic and political problems are caused by the government. He goes in depth to explain why the government policies are a major factor in creating these problems, as well as the market forces itself. In addition to this, he discusses the relationship between income inequality and societal growth, and how rent seeking contributes to it. The following is main ideas from his essay that help to further prove his point of how rent seeking provides for income inequality, as well as how the government policies help in the making of an unequal society. Firstly, because the government policies shape the market forces, they are able to shape the degree of inequality.

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Consequently, many rich Americans believed in this view, and used it as an explanation of why some are poor and some are rich. Additionally, a similar view is expressed in Progress & Poverty, written by J.M Dent. (Doc. 11). In Progress & Poverty, Dent explains that an uneven distribution of wealth will aid social progress, because it will drive people to work harder, which in almost all cases, never worked, and only caused social unrest and strikes. Conversely, some politicians fought for workers’ rights and developed legislation in response.

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In the 1880s, Cornelius and Mary Moore were a young couple starting a family in Canada. They would soon be facing great hardships, but throughout their struggles, the couple would continue to press on, in search of a better future. This perseverance would inspire future generations to pursue greater possibilities for themselves. In Canada, the Moores lived in modest homes without running water or electricity.

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They also attempted to shape thinking, to make acceptable difference in income that would otherwise be odious”(395). In economic and political fields, people who are in charge take advantage of the authority, in other words, the dominance to consolidate and bolster their superiority. They influence (or manipulate, to some extent) the public’s thoughts and convey the idea that the difference in income is reasonable and justifiable to the public. Both Ho and Stiglitz mention people’s desire to maintain and strengthen the status.

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Income inequality The article “Confronting Inequality,” written by Paul Krugman, a professor at Princeton University, emphasizes that the middle class suffers from social inequality and economic inequality. Krugman suggests building a stronger safety net so the gap between the poor and rich can be limited to by raising of the taxes. Krugman uses this claim to highlight the fact that the middle class needs to be stronger and the only way to achieve that is to have a strong safety net. Krugman says the rich use loopholes in the tax system to cheat their way out of high taxes, and the poor pay a relatively high tax compared to what they should be paying.

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America, the land of equity, has the largest ratio of rich citizens to poor citizens at 12:1. Compared to Japan and Germany’s measly 4:1, this information is outrageous. America is shown to have the most skewed economic pyramid when denoting the amount of people on each side of the economic slide. The selection, Class in America - 2006, an academic paper by Gregory Mantsios, argues the existence and magnitude of class and economic standing in the United States; through the use of fact and opinion, he creates the visual of a society severely divided by economic standing. Gregory Mantsios effectively convinces the audience of the differences in class sanding that cause a significant impact in the lives of americans and economic spectrum with his use of logos, anticipation, and credible evidence.

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In America after World War Two, citizens were split between classes based on their economic stability. Americans today still look at these classes and define these people as better off or worse off than the next person. Why do people judge others for having less money than them? Why do employers send lower class citizen away when they need the money the most? These are some question that citizens in the lower or middle class have when they are looking at their position in America’s economic system.

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“There is something profoundly wrong wrong when one family own more wealth the bottom 130 million Americans.” The United States of America has always had economic growth problems. Income Inequality is a big factor for this situation. We are currently in the 21st century and yet we have no improvement on income inequality. In 1984 by George Orwell the low income are the proles who are the incredulous of the story.

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American history is built on affairs regarding freedom and equality, but negative issues thought to be conquered in the past have also become present day problems. When confronting controversial social, economic, and political topics in America today, the line between fact and opinion blurs. People across the country develop their own views on national issues, based only on personal experience and what the media tells them. Whether it be intention or ignorance, Americans are not supplied with enough information to accurately confront the major, national problems that lie just inside this country’s borders. Americans are unaware of slavery and socioeconomic issues that exist around them, which in turn presents a concern when trying to combat

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The problem with the widened wealth gap is that the inequality may harm the quality. Meaning that those in the higher classes see it as you can use the money with no restrictions. However, economist believe that the “relationship between inequality and economic freedom, with the possibility that policies that are meant to reduce inequality will reduce economic freedom, which will then only make inequality worse.”

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Among our closest counterparts are Russia with its oligarchs and Iran. While many of the old centers of inequality in Latin America, such as Brazil, have been striving in recent years, rather successfully, to improve the plight of the poor and reduce gaps in income, America has allowed inequality to grow.” (Stiglitz 2011) Inequality doesn’t give anyone an equal

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319 Words | 2 Pages

My father drilled the words into my head every single day for 17 years, “be apart of that 1% not the other 99”. Raised in a country where the rich get richer and the poor get poorer, I’ve been fascinated about the economic theories throughout the country. Wealth inequality in the United States intrigued me. Since I was a kid I’ve tried to decipher what my father meant when he told me to be apart of “that 1%”. Until, finally, I came to understand the facts behind it.

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