Is Inequity A Big Problem The United States - 1714 Words

No matter which country you would look into whether it’s from wealthier to those less wealthy countries through the eyes of economics, there are bound to be types of inequity within their borders. Inequity is a very crucial problem in the United States, you would think that our economy here in the states is booming, and the citizens are living life easy or without worry. Life is the United States isn’t as it seems, in fact, Inequity is in fact a big problem even in the United States. Over the years, there has been millions of Americans that were considered to be in poor or in poverty line that are not able to provide for themselves and their families. We can sadly see those Americans on the streets, cars or shelters unable to keep-ends†¦show more content†¦It is often associated with the idea of income fairness. It is generally considered unfair if the rich have a disproportionally larger portion of a country s income compared those not so rich in their populat ion. This means in an obvious note, that income spread throughout the United States is â€Å"unfair† in that the rich will get richer, and the poor will stay poor or will have little to no income to spend for basic goods and services. There are ways to possibly resolve income inequality that I’ll be talking about as form of government interventions later on. What is the cause of income inequality? Rittenberg and Tregarthen (2012) explains that Income inequality in the United States has increased over the last century. Rittenberg and Tregarthen (2012) have also shared data from the Congressional Budget Office that reveals between 1979 and 2007, the real average household income also taking into account government transfers and federal taxes that rose 62%. For the top 1% of the population, it grew 275%. For others in the top 20% of the population, it grew 65%. For the 60% of the population in the middle class, it grew a bit under 40% and for the 20% of the population at the lowest end of the income distribution, it grew roughly 18%. The data clearly shows that even though the United States is considered one of the wealthiest countries looking at these numbers it’s easy to tell that the citizens are having it