The Poor Get Poorer: Economic Inequality and the Invisible Hand

Income inequality has been a hot-button issue in America for years. Many people believe that the current state of income inequality is unacceptable and that something needs to be done about it. This article will take a comprehensive look at income inequality in America.

We will discuss the history of income inequality and the current state of affairs. Additionally, we will explore the economics of inequality and offer some solutions to this problem.


Wealth inequality has been a problem for as long as humans keep track of such things. For most of human history, the wealthiest 1% of the population controlled almost all of the world’s wealth.

In 1970, the middle class controlled about 61% of the world’s wealth, and today, they only own about 46%.

That means that the middle class is now almost as poor as the poorest 50% of the world’s population.

The trend of rising inequality is happening all over the world. In almost every country, the rich are getting richer while the middle class is poorer. The only exception to this trend is a few countries in Africa and Asia where the middle class is growing.


Some examples of income inequality are the difference in wages between men and women, the difference in wages between people of different races, and the difference in wages between people of different socioeconomic backgrounds.

Income inequality can also be seen in the way that different people can access additional resources. For example, some people have better access to education, healthcare, and housing, and this can lead to further inequalities in income and wealth.

Income Inequality Facts

Income inequality in America is a problem. The top 1% of earners in America make 21 times more than the bottom 90%, and the top 0.1% of earners make almost 220 times more than the bottom 90%.

This growing income inequality is unfair, but it is also bad for our economy.

When too much wealth is concentrated in the hands of a few, it results in less spending and investment, which leads to slower economic growth.

Income inequality is also bad for our democracy.

When the wealthy have so much more money than everyone else, they have disproportionate power and influence.

They can use their money to buy elections, pass laws that benefit themselves and protect their interests at the expense of everyone else.

The United States has always been a country with a large income gap between the rich and the poor. However, income inequality has grown significantly in recent years.

According to a report from Pew Research Center, “the share of total income held by upper-income households was 49% in 2014, up from 29% in 1970.”

This means that the top 20% of earners in the United States now earn 49% of income, while the bottom 20% only earn 11%.


There are many reasons why income inequality exists. One reason is that structural barriers in society prevent some people from earning as much as others.

For example, women have historically been paid less than men for doing the same work. This is changing in some countries, but there is still a long way.

Another reason for income inequality is that some people are born into families with more resources than others.

This means that they have a head start in life and are more likely to be successful.

Finally, some people earn more than others because they have special skills or talents that are in demand. This is often the case for people who work in highly paid occupations such as doctors, lawyers, and bankers.

Wealth Inequality Problems

Income inequality can lead to a number of problems in society. One problem is that it can create social tensions and division. For example, people who feel that they are not getting a fair share of the pie may lash out at those who they perceive to be earning more than them.

Another problem is that income inequality can lead to economic problems.

When some people have a lot more money than others, it can lead to inflationary pressures.

This can make it harder for people on low incomes to make ends meet.

Finally, income inequality can harm people’s health. This is because people who have less money are more likely to live in poorer quality housing and have worse healthcare access. They are also more likely to experience stress and anxiety.

How To Reduce Income Inequality

There are several ways to reduce income inequality.


One way is to provide more opportunities for people to earn a good income, and this can be done by investing in education and training programs.


Another way is to make sure that the tax system is progressive so that people who earn more pay a higher percentage of their income in tax.

Social Security

A third way to reduce income inequality is to provide social security nets for people on low incomes. This can include things like unemployment benefits and healthcare.

Minimum Wage

Fourth, we can try to ensure that the minimum wage is high enough to live on. Fifth, we can try to reduce the number of low-paid jobs. And sixth, we can make sure that rich people pay their fair share of taxes.

These ideas require political will and action to make them a reality. But if we want to reduce income inequality, they are all worth considering.


Income inequality is a complex issue, and it will take time and effort to solve it. However, if we work together and implement some of these solutions, we can make a difference.


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