Income Inequality

Income inequality is a degree to which revenues are distributed in an irregular manner in a given population in a country. In the United States, income inequality has been growing significantly over the past decades. The richest people in the United States earn approximately $ 1.3 million per annum, while the half of the Americans earn approximately $ 16000 of the pre-tax revenues (Long, 2016).

Income inequality is a problem in the United States because it is among the top factors that have for long impacted the current economic conditions of anemic growth, flat wages, and de-leveraging. When the middle-class people’s well-being and economic wealth are suppressed, it is likely to result in the undermining of the long-term stability of the entire economy. Income inequality leads households to debts in the long run. People end up purchasing things that they cannot afford in order to fit in certain social classes. Households pile up debts with their incomes remaining stagnant, and this is a factor that is likely to cause economic disaster (Saez & Zucman, 2016).

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The government can deal with the issue of income inequalities in the economy through redistributing benefits and taxes or through reducing the variances in pre-tax incomes. Greater equality can be achieved through offering similar benefits to the people regardless of their prevalent social statuses. Different forms of economic democracy such as employee share ownership reduce the extent of income inequality and help in embedding equality in the society (Pickett, 2015). The government can promote economic democracy so that the problem of income inequalities is suppressed.

As Christians, it is important to note that all the people are equal in the eyes of God despite their social statuses. All the people need to be offered some opportunities in order to make the most of themselves. According to Christian teachings, it is important to share possessions and wealth with the less fortunate people in the society. Sharing is vital for Christians, and it will assist in creating a sense of equality in the society.

 

References

Long, H. (2016). U.S. inequality keeps getting uglier. CNN Money. Retrieved 22 January 2017, from http://money.cnn.com/2016/12/22/news/economy/us-inequality-worse/

Pickett, K. (2015). Reducing inequality: an essential step for development and wellbeing | Progressive Economy. Progressiveeconomy.eu. Retrieved 22 January 2017, from http://www.progressiveeconomy.eu/content/reducing-inequality-essential-step-development-and-en

Saez, E., & Zucman, G. (2016). Wealth inequality in the United States since 1913: Evidence from capitalized income tax data. The Quarterly Journal of Economics, 131(2), 519-578.