History
After the WWII, there was a substantial economic growth in the 1970s, and the income inequality was minimal. During the end of the 1970s, economic growth slowed done and the income inequality gap started widening (Stone, Trisi, Sherman, & Horton, 2016). Wealth distribution was more to the upper-class households, and the lower and middle class started experiencing the disparity. Statistics indicated that top 3% of the population held half of the wealth while the rest was distributed in small bits to the rest of the population (Stone, Trisi, Sherman, & Horton, 2016). In the 21st century, the gap between the haves and have nots is still widening. The rich are making money three times more than during the 1980s in America.
Impacts and who is affected
The greater the gap in income and wealth distribution, the decreasing economic growth in developing countries and economic growth in rich countries continues to increase. The developing countries are the most affected because they continuously become depended on national aids from the rich countries. Eradication of poverty in developing countries has become a challenge for the World Bank Group because of the widening disparity of wealth distribution.
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What do People think about it?
People feel that the wealth that is accumulated by the rich people should be equally distributed to all people (Wittner, 2015). Income should be redistributed to reduce the gap between the rich and the poor. The main reason for the distribution of wealth is because people believe that the rich have unfairly accumulated the wealth.
Debates
The biggest inequality debate is whether the current system of economy operations can favor both rich and the poor. The growing gap between the rich and the poor is affecting the overall economic growth. Will the sustainable development goals close the gap?
References
Stone, C., Trisi, D., Sherman, A., & Horton, E. (2016, November 7). A Guide to Statistics on Historical Trends in Income Inequality . Retrieved from Center on Budget and Policy Priorities: https://www.cbpp.org/research/poverty-and-inequality/a-guide-to-statistics-on-historical-trends-in-income-inequality
Wittner, L. (2015, July 7). What Do Americans Think About Economic Inequality? Retrieved from HuffPost: www.huffingtonpost.com/lawrence-wittner/americans-think-about-economic-inequality_b_7729096.html
