The Unequal Distribution of Income and Wealth
Great Recession Said to be the Reason for the Growing Economic Gap between United States’ Rich and Poor
Ever since the world was created, classifications among every creature there is have already been made. The most popular classification among all of these is the lower and higher status. At present, these terms were just changed into new ones, the rich and the poor. However, the same things are still associated with it, which was what most individuals in United States are having issue about. The rich still remained to possess wealth and power while the poor, even with all the effort and hard work still remains where they are. If ever changes occur, it will be that, the economic gap just continued getting wider.
The Widening Gap in Income
Some recent study stated that the widening economic gap occurring between the rich and the poor along with the involved power and wealth is due to great recession. The difference between this gap and the recession in the country can be better understood through discussing the distribution of net worth, financial wealth, and income.
How Income is Distributed
According to the to the a data presented for the Distribution of Financial Wealth and Net Worth, the top 1% comprised by the wealthy people, from 1983 to 2007, although there were some years that their net worth are going downwards, the overall change was still good on their part since it still increased in the end. Changes for the next 19% were also as good as those that belonged to the 1%.
As for those comprising the remaining 80%, it was where the negative change occurred, since the level of net worth their overall population has encountered decreased for almost 3%. The same goes with the financial wealth each percentage group experienced. Although the top 15 had a decrease of 0.25 from the 1983 to 2007, the decrease that occurred with those from the bottom 80% is still bigger.
The Slippery Slope
Considering the recession that was said to be the reason for the widening gap between the poor and rich, it seems that the ones more affected were the poor. As it is the larger cut of the overall net worth and financial wealth are still held by those from the top 1%
In a world where people are classified into rich and poor, it is expected that the rich ones will have the more power. Taking the date for the distribution of income and power among the rich and poor, both parts have experienced fluctuation. The thing is, even though recession is being factored, the top 1%still rose and added 8.5% on their level of income and power from 1982 to 2006. The bottom 80%, from having 48.1% level of income and power, it decreased to 40.1%.
Recession may be a big part of the widening economic gap between the rich and poor, but it cannot be denied that it is still the population from the bottom 80% who are suffering the financial strain associated with it. In contrast, the top 1%, although they are experiencing some changes due to recession, it still did not led them to experience what the remaining percentage of the population are enduring, and as what was shown, they just got wealthier throughout the past years.