Llamas

John Llamas
Professor Lookholder
Sociology 1
17 December 2016
Conflict Perspective: Economic Inequalities in the United Sates
Since becoming its own country, the United States has been able to emerge as an
international powerhouse because of its robust economy. With unparalleled entrepreneurs
like Cornelius Vanderbilt, John D. Rockefeller, and Andrew Carnegie, our country
experienced an industrial revolution that would catapult us toward the upward echelons
of the global economy. The industrial revolution allowed us to break barriers across all
industries, which created unprecedented levels of economic growth. This growth
produced millions of jobs, billions of dollars, and countless opportunities. However, as
time progressed, these extraordinary results diminished and were skewed. While the
nation has experienced incredible growth, only a few individuals have been able to reap
those rewards. Through a conflict perspective, it is evident how the economic inequality
in the United States causes competition for limited resources that are controlled by an
elite.
In order to understand the economic inequalities in the United States, it is
imperative to understand the American class structure. Based on economic status,
Americans can be categorized into one of five social stratifications: lower class, working
class, lower-middle class, upper-middle class, and upper class. To put that into
perspective, lets compare an individual from the lower class with an individual from the
upper class. In the lower class, this individual will probably have a high school diploma,

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work in a factory or retail sales, and earn about $30,000 per year. For the upper-class
individual, he or she will probably have a graduate degree from a prestigious university,
work as an executive, and earn $500,000 per year. While the individual from the lower
class will be able to relate with over 55% of the population, the upper-class individual is
only in a group that constitutes 1% of the population (Gomick 115). In this comparison,
the gap is extremely evident because a very small percent of the population holds the
majority of our countrys wealth. To make matters worse, this gap has widened overtime
and the middle class is shrinking. According to CNN Money, in 1970, the share of U.S.
income held by the upper and middle classes were 29% and 62%, respectively. In 2015,
those numbers shifted to the upper class holding 49% of U.S. income, while the middle
class dropped by 19% to 43% (Luhby). And keep in mind that the upper class is only 1%
of the population.
This gap is the result of corporate interests that have led to a lower quality of live
for the average American. Steven Greenhouse, a renowned writer on labor and workplace
issues, credits the countrys economic inequalities to the disparity between salaries
(Greenhouse 31). Workers earn relatively nothing compared to the chief executive
officers of the companies they work for. For example, take a look at Walmart. The
average full-time employee at Walmart will earn an annual salary in the ballpark of
$20,000-$30,000. In comparison, Michael Duke, CEO at Walmart, will walk away with
$35,000,000. To put that into comparison, it will take that employee 1,100 years to earn
what the CEO makes in twelve months (Che). This disparity perpetuates the gap because
of access to resources. The CEO can easily finance a world-class education, healthcare
plan, and living in a safe neighborhood. On the other hand, the average worker cannot

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afford an education at some of the most prestigious academic institutions, full medical
coverage, and will reside in urban housing where the quality of life is much lower
(DeSilver). As the wealth is skewed toward the 1%, so are these resources. And this
prolongs the problem.
Through a conflict perspective, we can examine how the United States is a society
of groups competing for resources that are currently held by only a handful of
individuals. Our economy fosters struggle between groups: on one hand, we have
millions of families living paycheck-to-paycheck, on the other, we have a few families
earning in a year what other families will not earn in a lifetime. While the lower class
fights for better wages, better healthcare, and better working conditions, the upper class
does not listen and focuses on maximizing shareholder value. Karl Marx was a firm
denier of capitalism because he believed that if society owned the means of production,
then these inequalities would be inevitable. With a majority of the countrys income
going to those in charge of our means of production, it is apparent that Karls worries
have materialized. The social stratification that Corporate America created has placed the
majority of Americans at a disadvantage. The average Joe has now been put into a
position this inequality influences his education, health, and overall quality of life. With
this social conflict, the majority of Americans have united to advocate for social change.
Millions of Americans have united to push for increased wages and better working
conditions. Americans are standing behind non-profit organizations and policymakers
that seek to dismantle these economic inequalities. The recent election cycle fostered
unwavering amounts of support for candidates that represented the best interests of

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working class families. All in all, the social conflict of economic inequality has catalyzed
a voice in the working community to demand social change that will close the gap.
In order to close the gap, it is imperative to improve the resources that the
working class currently lacks. According to the World Economic Forum, these economic
inequalities can be tackled with three solutions: tax policy, redistribution, and improved
education (Mohammed). At the root of these solutions is fiscal reform that prompts the
1% to pay more in taxes. Many individuals from the 1% are able to hire top attorneys and
accountants to tackle the tax codes and take advantage of tax loopholes. In an effort to
ensure that the wealthiest individuals are paying their fare share of taxes, it is integral to
remove these loopholes and increase the current tax rates for individuals and
corporations. With this increase in tax revenue, the funds will be redistributed across
social programs that benefit the average Joe. These funds could be utilized to subsidize
an education or increase social welfare programs. The third solution, improved education,
is integral to shifting these paradigms. Not only is subsidizing a quality education
important, but so is improving the quality of education. It is extremely important to
improve the learning environment by modernizing academic institutions, hiring high
quality talent, making school accessible, and, most importantly, being able to
intellectually stimulate a student. With a high rise in entrepreneurship that has paved the
way for just about anybody to become successful, it is integral that todays learners are
well positioned to become tomorrows leaders, in and out of academia. By pushing for
tax reform, redistributing wealth, and enhancing education, we are able to mitigate the
economic disparities in our country.

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Ultimately, our country has experienced significant growth over the past 200 year.

Through innovate pioneers; our country has become the biggest economic force on the
planet. However, it has come at the expense of the majority of Americans. Unlike never
before, our country is experiencing a great disparity because of the wealth our country
has amassed. Only a handful of individuals are sharing in our countrys success, while the
majority of Americans are barely getting by. Through a conflict perspective, we have
examined how this system has perpetuated tension between the wealthy and the poor.
Statistics show that this gap continues to grow as competition for resources persists. With
this ongoing struggle, the working class has emerged with a voice that demands social
change. In search of tax reform, redistribution, and improved education, the working
class is fighting for sustainable change. Overall, our country is regarded as the strongest
nation in the world because of our economy. But that economy only favors a few and the
working class, equipped with public policy reforms, is ready to dismantle this social
conflict and bring about change.

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Works Cited

Che, Jenny. "Here's How Outrageous The Pay Gap Between Ceos And Workers Is". The
Huffington Post. N.p., 2015. Web. 19 Dec. 2016.
DeSilver, Drew. "U.S. Income Inequality, On Rise For Decades, Is Now Highest Since
1928". Pew Research Center. N.p., 2013. Web. 19 Dec. 2016.
Gornick, Janet C and Markus Jntii. Income Inequality. 1st ed. Stanford, Calif.: Stanford
University Press, 2013. Print.
Greenhouse, Steven. The Big Squeeze. 1st ed. New York: Alfred A. Knopf, 2008. Print.
Luhby, Tami. "Middle Class No Longer Dominates In The U.S.". CNNMoney. N.p.,
2015. Web. 19 Dec. 2016.
Mohammed, Amina. "Outlook On The Global Agenda 2015". World Economic Forum.
N.p., 2016. Web. 19 Dec. 2016.