Research on Narrowing the Wealth Gap

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According to a 2000 fact finder, that here in State College, 9.7% of the total families are under the poverty line. It’s an amazing status that meaning in every class of 30, three people live under the poverty line. Considering the richest in town who even can afford a Ferrari GT, the problem of the wealth gap is obvious and serious though PA is one of the richest states in the United States. So the gap between the rich and the poor can and must be narrowed, though maybe counter a short-term business cycle. This paper will discuss the causes and the influences that the expanding gap between the rich and poor violate the society. In order to solve the problem, the cause of the gap has to be clarified. Actually the gap has the same inevitability as its producer: the growth of economy. Since the growth rate of the whole national is certain, with more wealth one can gain more while those poor people will not benefit that much from the economic growth of the society. As this is the truth, an existence of the gap is inevitable, so what people can do is just narrow but never close that gap. A direct result due to the economic growth is the largely unfair payment for CEOs and mid-class workers. According to the American Accounting Association (2003), in the past 35 years, corporation executive pay has increased 520% while that of the ordinary workers just increased 36%. The inflation rate is 34% in the past 35 years, which means that in the last 3 decades, life of an ordinary worker changed nothing when CEOs are enjoying their vacation on a private yacht. The expanding wealth gap also leads to a decreasing in the middle class population. According to Tribune(2006) written in his article, titled Middle class is disappearing in cities ; American haves, have-nots sort themselves geographically, from 1970 to 2000, the proportion of middle-income neighborhoods in the nation's 100 largest metropolitan areas declined from 58 percent to 41 percent, according to a new Brookings report. That was a faster drop than the metro wide share of middle-income families. Their proportion fell from 28 percent in 1970 to 22 percent in 2000. Looking beyond these statistics, unemployment claimed the decrease. (aaahq.org/audit/index.htm) Currently, the U.S remains a population of over 10000000 unemployed, 30% of which lost their job during Bush’s governing. Many of the unemployed has been fallen from the middle class to the “poor”. Recent collapse of Economic system made the situation even worse. What shall the expanding gap bring to us? Why is this an exigency? The first of which the gap shall harm is the social regulation. According to international Police Association, in the year of 2000, 4123.92 crimes were committed in every 100 thousand people. What’s more, a report of the Supreme Court (2006) said that in 2005, 5200000 crimes were committed, an increase of 2.5%. Among every 1000, one was raped, one was injured to death and three were robbed. Modern Criminology (2002) states that: “There’ll be no crime when a society only has the rich or the poor, but a lot of crimes will be committed when a huge wealth gap exists.” Especially the property crime, since property crime is a natural result of the polarization of rich and poor. In a sense, this kind of crime is only an illegal way to narrow the wealth gap. According to a government report in 2005, 17% of GNP was gained by the rich whom only occupy 1%of the whole U.S population. Thus when the poor come to have nothing, their tendency to ignore the social regulation becomes stronger, according to Maslow’s Hierarchy of needs (web-text art of speaker 2008). However, some countries have done well in narrowing the wealth gap. For example, Switzerland, a rich European country with the least income gap among developed country, where crime rate is only 10% of that of the U.S. Moreover, the expanding gap affects the public trust to the government. As the gap becomes larger, the poor and the middle class more...
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