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IncomeInequalityPaper1
The United States: Behind the Veil of “Equality”
America is the place where all dreams come true. Or so they say. For years, the image of
the land of opportunity, where all men are created equal and are able to pursue the “American
Dream”, has dominated global thought. Our nation is populated by immigrants and their
descendents, who traveled to this country to make better lives for themselves and for their
families. However, these presumptions have recently been challenged by discussions and
critiques of economic inequality, particularly concerning income distribution. I believe that there
is an extremely high level of inequality in the United States, and it is a horrible problem that all
citizens need to recognize.
While overall the United States is economically successful, the distribution of wealth
within our nation’s borders is unequal, and many people live in poverty. According to an article
from Commonweal, the United States has the highest income gap among advanced nations,
meaning the majority of our nation’s wealth is controlled by a small group1. In 2001, the U.S.
Census Bureau calculated that the richest fifth of the population controlled nearly 85 percent of
the total wealth, while the poorest fifth was in debt2. While our country, especially our
politicians, can boast that we are one of the wealthiest and most powerful nations in the world,
the fact that all of our citizens cannot benefit from our economic prosperity proves that we may
not be as impressive and successful as we claim to be.
Many economists argue that income inequality is not a problem that needs to be
addressed. They often argue that the unemployment rate of the United States is not as high as it
is in other nations, assuming that if a person has a job, he or she is making enough income to
1
"Fairness & the Economy." Commonweal 22 Sep. 2006: 5+. Academic Search Premier. Foley Library, Spokane,
WA. 25 Mar. 2007. <http://search.ebscohost.com>.
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“Distribution of Wealth in the U.S. 2001” U.S. Census Bureau.
survive and prosper economically. Additionally, they point out that our economy thrives and
dominates international wealth, trade, and consequently the political arena. With a gross
domestic product (GDP) four times higher than the second-wealthiest nation, Japan3, they
conclude that if our nation is flourishing as a whole, all of our citizens are therefore successful
and living well. Additionally, defendants of income inequality argue that it results in positive
competition. They believe it forces laborers to become more educated and skilled, which benefits
our workforce and economy4.
However, I am unconvinced by these arguments and feel that income inequality is a
major problem, especially in the United States. The first reason it is an important issue is because
it dispels the idea that all Americans are created equal. Individuals often find themselves in
situations that are beyond their immediate control. People are born into socioeconomic classes,
and rarely will they move up the financial ladder. The lower classes have fewer resources and
opportunities than the upper classes, such as access to quality education, and it is very difficult to
escape their class rank. They must work incredibly hard simply to survive and afford the basic
necessities of life, and many individuals occupy two jobs, earning very little as their health
suffers. Barbara Ehrenreich, a journalist for Harper’s Magazine, went undercover as a laborer
and detailed her experiences5. She described working for both a restaurant and a hotel
housekeeper, earning very low wages while she endured sleep deprivation, an unhealthy diet, and
the use of drugs to mask her constant pain. While low-income workers face many challenges in
the workplace, the high-income individuals who hold the majority of the nation’s wealth are not
forced to do hard labor to earn money. A great portion of their wealth is invested, so
“List of countries by GDP (nominal).” Wikipedia. 25 Mar. 2007.
<http://en.wikipedia.org/wiki/List_of_countries_by_GDP_(nominal)>.
4
Davidson, Adam. “Weighing Social Inequality vs. Income Inequality.” 8 Feb. 2007. NPR. <http://www.npr.org>.
5
Ehrenreich, Barbara. “Nickel-and-Dimed: On (Not) Getting by in America.” 1 Jan. 1999: 37-52. Harper’s
Magazine.
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accumulating money is simple and relatively less physically stressful than the challenges the
lower classes face. This unfair correlation between the amount and intensity of work and the
resulting earned income proves that income inequality is unjust and that it is a major problem
that needs to be addressed.
Furthermore, Americans often claim that discrimination, including racism and sexism, no
longer exists within our nation’s borders, but all one has to do it examine the groups who are
most likely to be in poverty to realize that that this statement is not true. Non-whites, especially
African Americans and Hispanics, are more likely to be poor than whites. Additionally, women,
as well as households headed by women, are more likely to be in poverty than men and
households run by men. This cause of income inequality is rooted in the social structure, as nonwhites and women face prejudice in obtaining jobs and earning high wages. For example, it is
very difficult for a woman to gain an executive position within a company. It is assumed that she
is too emotional to effectively manage workers below her. Because stereotypes about groups
such as this example are accepted and practiced in the workplace, the belief that status and its
associated wealth is based on meritocracy is in reality a myth, confirming that income inequality
is a serious issue.
In addition to contradicting the belief that all people are equal, the income distribution
gap is also a major problem because while it obviously directly affects the individuals who are
impoverished, it also indirectly concerns the entire nation. Government aid programs, including
the welfare system, are funded by tax dollars. In essence, the rich are paying to assist the poor.
The math is simple: the more poor people there are who need government aid to survive, the
more it costs us as a nation. What is even more terrible is that the rich are content paying for this,
rather than attempting to solve the problem of inequality. Additionally, the more impoverished
people we have, the worse our country appears in the international arena. While we may
maintain our political dominance, we lose respect from countries who take better care of their
citizens. Specifically, many socialist nations strongly critique our capitalist system, which creates
unnecessary global tension and conflict. The transition from a domestic issue to an international
dilemma demonstrates the seriousness of the problem concerning income distribution.
The third reason that income inequality is a major issue is because many economists
predict that the gap between the rich and the poor will widen. According to an article from the
Christian Science Monitor, if the current slow wage growth continues, it could result in greater
income inequality, as well as wage stagnation6. While this would not directly inconvenience or
trouble the wealthiest individuals, it would affect a great majority of the population in the middle
and lower classes. As the cost of living rises, wages must also increase, or many people will no
longer be able to afford living expenses and will fall under the poverty threshold.
The unequal income distribution of wealth and income in the United States is a major
problem that needs to be addressed. While some economists and politicians argue its positive
effects, I believe that income inequality is a negative result of our capitalist economy. It dispels
the belief that America is built upon the idea of equality, and it reveals the myth of meritocracy.
It also affects our entire nation, not only the poor individuals directly affected by the unequal
income distribution. Lastly, if it is not taken seriously and no one attempts to solve it, the
problem of inequality will become worse. When will we truly portray American equality?
Francis, David R. “Signs point to greater rich-poor wage gap.” The Christian Science Monitor. 3 Sep. 2002: 16.
National Newspapers. ProQuest. Foley Library, Spokane, WA. <http://www.proquest.com/>.
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