Online Payment System
Foreign Trade University International Economics Faculty ----------
Public economics assignment
Income inequality in United states since 1970s
Lecturer: Msc.Ly Hoang Phu
Hoàng Ngọc Lan Chi | 1001060022 | Phan Thị Huyền Trang | 1001011015 | Phạm Thị Hương Liên | 1001060080 | | | | | | |
Hanoi, March 2013
Contents INTRODUCTION 3 CONTENT 4 I. Overview of income inequality in US since 1970s 4 1.Definition and characteristic of income inequality in US 4
1.1. Definition of income inequality 4
1.2.Characteristic of income inequality in US since 1970s 5 2. Facts of income inequality in US since 1970s 6 II. Causes and effects of income inequality in US 8 1. Causes of income inequality 8 2. Effects of income inequality in US since 1970s 10
2.1 Effects on economy 10
2.2 Effects on society 12
2.3 Effects on politics 17 III. Policies issued to reduce income inequality and their effects in the U.S. during the period from 1970s 18 1. “Effective tax rate” 18 2. Tax cuts return 19 3. Other policies 19 IV. Recommendations 20 CONCLUSION 26 REFERENCES 27
INTRODUCTION
Inequality has always been a part of the United states economy, but the gap between the rich and the poor has recently been widening at an alarming rate. Today, more than 40 percent of total income is going to the wealthiest 10 percent, their biggest share of the nation 's pie in at least 65 years. The social and political repercussions of this disparity have been widely debated.
Oddly, despite its position in the political debate, the question has received little attention from economists. Mostly, they have focused on measuring income inequality and establishing its causes. Some research has been done, however, and the results, including insights from related disciplines like psychology and political science, are disturbing.
This report, therefore, will specify in analyzing United states, one of developed countries having high inequality in income in a simple way to bring out
Public economics assignment
Income inequality in United states since 1970s
Lecturer: Msc.Ly Hoang Phu
Hoàng Ngọc Lan Chi | 1001060022 | Phan Thị Huyền Trang | 1001011015 | Phạm Thị Hương Liên | 1001060080 | | | | | | |
Hanoi, March 2013
Contents INTRODUCTION 3 CONTENT 4 I. Overview of income inequality in US since 1970s 4 1.Definition and characteristic of income inequality in US 4
1.1. Definition of income inequality 4
1.2.Characteristic of income inequality in US since 1970s 5 2. Facts of income inequality in US since 1970s 6 II. Causes and effects of income inequality in US 8 1. Causes of income inequality 8 2. Effects of income inequality in US since 1970s 10
2.1 Effects on economy 10
2.2 Effects on society 12
2.3 Effects on politics 17 III. Policies issued to reduce income inequality and their effects in the U.S. during the period from 1970s 18 1. “Effective tax rate” 18 2. Tax cuts return 19 3. Other policies 19 IV. Recommendations 20 CONCLUSION 26 REFERENCES 27
INTRODUCTION
Inequality has always been a part of the United states economy, but the gap between the rich and the poor has recently been widening at an alarming rate. Today, more than 40 percent of total income is going to the wealthiest 10 percent, their biggest share of the nation 's pie in at least 65 years. The social and political repercussions of this disparity have been widely debated.
Oddly, despite its position in the political debate, the question has received little attention from economists. Mostly, they have focused on measuring income inequality and establishing its causes. Some research has been done, however, and the results, including insights from related disciplines like psychology and political science, are disturbing.
This report, therefore, will specify in analyzing United states, one of developed countries having high inequality in income in a simple way to bring out
References: Jason Furman, 1998, Joseph E. Stiglitz, Economic Consequences of Income Inequality, Proceeding. Karen Rowlingson, 2011, Does Income Inequality cause health and social problem?, Joseph Rowntree Foundation. Oded Galor, 2004, Omer Moav, From Physical to Human Capital Accumulation: Inequality and the Process of Development, The review of Economic Studies. Kuznet, S Luigi Pasinetti, 1962, Rate of Profit and Income Distribution in Relation to the Rate of Economic Growth, The review of Economic Studies.