Inequality Is A Natural Side Effect Of A Capitalist Economy

Introduction The Issue In President Obamas State of the Union address he stated income inequality as the biggest problem facing the future of the world. Income inequality is defined as the unequal distribution of wealth throughout a group’s population (Inequality). Inequality is a natural side effect of a capitalist economy, but when it’s left unchecked like in most 3rd world countries it creates growing divides that hamper growth, prosperity, happiness and the general well-being of the population (Economist). Across the globe we are seeing more of income being distributed to the top 1% than ever before (Economist). And although we have seen similar trends in the past it has never been on this scale. Income inequality tends to have a†¦show more content†¦Obesity rates along with teenage pregnancy will increase among the lower class. Life expectancy will go down as crime rate goes up (Inequality). Purpose The point of this paper is to analyze the effects income inequality has on the e conomy. To look at other places inequality affects the lives of the people involved. And to come up with solutions to address inequality in a bipartisan way that will lessen the impacts for future generations. Deeper Look Case Study Income inequality is a global problem, but In America it’s just now starting to make the news (NPR). It used to be seen as a liberal issue as the right end of the spectrum always believed in the American Dream and if you worked hard you could rise up and out of the lower class. This sentiment has done a complete 180 as now both sides are shifting their focus to the issue of inequality, each with their own ideas on how to solve the problem (Pew Research). One of the basic American ideals has always been equal opportunity in the work place while Europeans often focused on equal outcomes. The problem currently is that the growing inequality undermines all chance of equal opportunities. We always hear about the Bill Gates billionaires and the self made millionaires and it gives people hope that they can achieve that amount of wealth. The truth is that the top 1% is becoming more and more a fixed club due to inequality (CNBC). It isn’t as obvious in