Zahra Edlou

BUS378-01
Professor Mihalakas
David Cay Johnstons presentation

Inequality means the condition of being unequal; lack of equality; disparity. Based on
Wikipedia, Social inequality occurs when resources in a given society are distributed
unevenly, typically through norms of allocation that engender specific patterns along
lines of socially-defined categories of persons. Economic inequality described on the
basis of the unequal distribution of income or wealth, is a frequently studied type of
social inequality. In David Cay Johnston, author Divided The Perils of Our Growing
Inequality of word, inequality means favoring top 10s by directing nations economic
gains to them and drawing back low 90s income. In my word, inequality means, raising
tax on middle class income and giving MR. Warren Buffett no interest loan. Or we pay
hidden tax on gasoline and Pipe Line Company discharge from income tax.
How bad is it?! Author of The Perils of Our Growing Inequality, David Cay Johnston,
believes that in our society all nations income goes to top 10% and the vast majority
see decline in their income. In 2012 the average income of 1 percent was 41 times of
the average income of 90 percent. In other word, average income of 1 percent raised
from $441,000 to $1,264,000 while average income of 90 percent dragged back to level
of 1966.
In 1999, a presidential candidate, George W. Bush promised that he would make
American even better if he was elected and his tax cuts would ensure American
prosperity. Tax cuts first took effect in 2001. As a result, Bush tax cut went to 1/10 of 1

percent. According to Johnston, from 2001to 2012, Americans have lost $6.6 trillion
(more than one-third of the country's annual GDP.)
$6.6 trillion it would have been enough to pay off all the student loans in United States
($1.26 trillion), all the automobile loans ($892 billion) and all the credit card debt ($827
billion), nearly $48,000 of additional gross income per taxpayer, and more than $17,800
leftover per household (Johnston).
How do you fix it? Great question! The answer may be easy, but it will take a long time
to implement. One solution would be raise tax for top 1 percent, and cut tax for rest of
Americans. While convincing government that education should be free, encourage
Americans to get higher education by attending colleges. Stop outsourcing and bring
back manufacturing and service companies to create more jobs. Increase and improve
domestic products than foreign products. The U.S. government power expanded and
strengthens after a war or a terrorist act. After September 11, Bushs Administration
combined 22 agencies and created the huge Home Land Security Agency while
America was shocked and busy with that terrible event. Americans should be more
aware of and involved in such a decision.
All in all, inequality will destroy the Americas democracy (Johnston). Like The U.S.
constitution; government, society and business should be independent and has power
to check and balance each other. And American should use their voting power to show
their presence in government, politics and economy.