American Wealth Disparity

American Wealth Disparity

In a nation whose aspirations are founded upon the ideals of equality and opportunity, the growing wealth gap of the modern world slowly poisons the identity and hopes of its inhabitants. The current state of wealth disparity and income inequality in the U.S. is endangering the national identity and signaling a recurrence of previous history.

The gap between the affluent and the “common man” of the middle class is in a frightening state in modern times. With the income of the average American being merely $41,670 per year years ago (adjusted to 2004 dollars), and the household income of the top one percent being at the least $525,000 a year (adjusted to 2013 dollars), the wealth gap is disturbingly apparent. This wealth gap is important in several ways. Exceeding twenty percent in 2012, the total income of the U.S. is largely held by the top one percent, owning a fifth of national income. With a significant fraction of the income held by a small percentage, it is clear that wealthy are gaining more and more power. As the select few who have been placed at the top of the heap gain a majority of the national income, those under them are in turn earning less. With “”one out of seven Americans on food stamps” it is easy to observe the failure of wealth to be held beyond the wealthy. When a seventh of citizens are working for wages that are not sustainable to live on while the top percentage are earning billions by simply investing, the current state of wealth inequality is a pervasive issue in the nation. The lengthy distance between the richest of the rich and the common middle class American continually heightens over the years, with all of it reaching the top percentage. This heightening of the wealth disparity between the average American and the ultra rich exemplifies a growing power held by the rich in a society where wealth wields the governments of modern nations. Through lobbying and donating, the affluent are able to maintain an environment which cultivates their fortunes and rots the wealth of the common people. Utilizing enormous fortunes, they are able to live beyond others by simply investing, exemplified by those who paid substitutes in the Civil War of the 19th century, “investing” in their life by hiring a substitute, allowing them to remain at home making profit.

Dating back to the industrializing America of the late 19th century, the exclusive collection of the ultra wealthy have collectively held much of the wealth of the nation, justifying this inequality by associating a “higher incomes with greater productivity and a greater contribution to society. The importance of the disparity of wealth is held in the simple idea of much of the wealth being possessed in a select group of affluent elite. The very same people who squeeze out each cent of profit from the workers are essentially also in the authority of dispersing the wealth back into the nation for the benefit of the public, through public schools or highways. By observing the state of the highways or the strained budgets of many public schools, it is easy to realize this top percentage is unfit to function as the protectorate to the public they often exploit for profit. Their failure to contribute to society is common due to the wealth gap itself, where the rich are distanced from the average citizen in income but also understanding, as they do not have to labor for profit and are far away from doing so. This recurrence of the 19th century in our modern day is quite similar, as the majority of the “one percent” do not funnel wealth back into the public. Another reason that makes the current wealth inequality important in the U.S. is the very idea of it. Built upon the concepts of equality and opportunity of the founding forefathers, the U.S. is characterized by its pursuit of equality and opportunity. Complementing hard work with success, this American Dream coveted and achieved by many is characterized by the ability of an average American to scale the ladder between poverty and wealth. With the income inequality of the modern U.S., this commonly held identity represented by the American Dream becomes just that- a dream. In a society whose identity is formed by the pursuit of economic success, a wealth gap such as that exists in the U.S. today will prove detrimental, as there is no way to achieve wealth that is held by a select few.

As the top percent of the U.S. garners more wealth, there is less opportunity and equality available to the common citizen. Ultimately, the growing wealth and income disparity within America is important due to the loss of national identity and opportunity as a massive amount of wealth is selectively held by a small class of affluent billionaires.