Writing paper Essay Example | Topics and Well Written Essays - 1500 words

Writing paper - Essay Examplething seems to be rippled, and only a few look concerned about the American problems, as everybody assumes that things argon headed in the right direction. The scope of this essay is thitherfore based on the common problems that are likely to force out the American dream, of which income inequality is the biggest problem of all the American problems.Many people have been of the opinion that racialism is the biggest problem facing America. The bold prediction has been that the rising income inequality will be the most authoritative political battleground for the next few decades (Cal et al). Surprisingly, most of the American problems have resulted from income inequality and this problem has been there for so long. Economists have assumed the income inequality problem for so long despite its consequences. The gap surrounded by the rich and the poor has been increasing on a daily basis. The rich are spending to a greater extent simply because they have m ore cash to spend. Their spending has been shifting the frame of reference that shapes the life of those who are in lower economic class, travelling in overlapping social circles. The middle class overly spends more, shifting the reference frame for the group just below it, and the income ladder continues this counsel up to those invigoration below the poverty line. Such cascades have made it more expensive for middle income earners to acquire basic financial goals.Taking a look at figures such as the income that accrue to the go on 1% increased from 9% in 1977 to 20% in 2012. The richest 0.1% used to control 7% of wealth in 1980 and 22% of the wealth in 2013. Meanwhile, many people have been of the opinion that the only way of reducing this income inequality would be through increasing taxes on income and wealth. Unfortunately, the rich will not renounce this to happen. Income inequality has caused a snowballing effect on the distribution of income, as there is a high wander of saving top incomes. As a result, wealth has been concentrating at the top. The rising income