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Wealth Inequality
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WEALTH INEQUALITY 2
Wealth inequality is a major issue that pervades the American society and is a barrier to
social mobility. Wealth is a major problem that determines the opportunities that an individual
has in the society. People who are born into wealthy families or are wealthy have more
opportunities than poor individuals do. The current issue of inequality has emerged due to
minimal opportunities and lack of mobility. In this context, mobility means the evolution form on
social class to another that is much better with more prospects for the individual.
Children born wealthy are bound to remain wealthy and will still die wealthy. This arises
from the inequality. The wealthy children have more opportunities in life. Essentially, this begins
with their parents who have developed linkages in a society that are used to amasses wealth or
even find opportunities to become wealthy. The wealthy children attend a school where most of
the students are from wealthy families. These children are socialized in a life of wealth and are
accustomed to a life of wealth. They have better opportunities as their parents have the finances
to ensure that they attend the best schools that are quite expensive for the poor to attend. These
schools act as a stepping-stone to wealth (Bernstein & Spielberg, 2015). This will be the case
from lower high school until the child has finished college. The child either can get opportunities
such as working in prestigious firms, or will be required to run businesses run by their families or
parents. This also them to remain wealthy as they have the opportunities to do so. Additionally,
these children of wealthy individuals can also inherit properties and money once their parents
die. If the individual uses this wealth well, they will be able to gain more wealth, and they would
die wealthy. If the individual has children, then the cycle of wealth will remain in the family.
On the other hand, low-income families and children from these families have minimal
possibilities of acquiring wealth. The struggles begin in childhood where their parents do not
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have sufficient finances to take the child to a good school. It becomes difficult to determine the
best use of resources due to competing needs. These include food, shelter, healthcare, clothing,
and education. It is difficult to ensure that the child goes to a good school, yet their family needs
food or even money for rent. The socioeconomic status of the child is directly linked to their
education performance. This will mean that the child will have a poorer quality education in
comparison to the rich (Bernstein & Spielberg, 2015). Additionally, even if they have been
educated to college, it becomes harder for the child to find the linkages in the industry that would
allow them to have a job and even gain wealth. Life will be a constant struggle, and the
individual will die poor. A large number of individuals who are born wealthy will die wealthy
while a very small number of people who are poor will die wealthy. Due to capitalism and the
configuration of the economy, wealth is not distributed equally. It remains concentrated to a few
ability and potential to become rich, but this is limited due to lack of opportunities. The countys
wealthiest individuals comprise the 1%, and they hold about for a huge share of incomes in
comparison to the remaining 99%. The wealthy often make policies that are favorable to them, or
they ensure that the poor do not take up their position in society (Bernstein & Spielberg, 2015).
This is often achieved by minimizing payment for employees or placing stringent and tough
restrictions of doing business. An individual will require additional finances to start a business,
but this would not be possible without collateral. Essentially, since the individual is poor, there is
a minimal possibility to have sufficient collateral to get a loan that can be used to start a business.
Moreover, the poor individuals are often characterized by a lack of knowledge due to poor
education. This means that they lack the expertise of how to invest the limited resources they
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have, or what kind of business that would prove beneficial to them. Additionally, a significant
number of poor people are engaged in crime due to frustrations. This becomes a limiting factor
as they cannot find a gainful employment if they have a criminal history or will find it difficult to
Figure 1: Link between inequality and mobility (source: Bernstein & Spielberg, 2015)
Based on figure 1 above, children born in low-income areas will be trapped into a life of
poverty. These areas with a higher income inequality minimize the chance of upward mobility.
The increase in productivity and growth often goes to the wealthy. In this context, the resources
and wealth will rarely reach those who are poor. This would mean that it is impossible for the
poor to invest in their children (Bernstein & Spielberg, 2015). The low-income families could try
to take loans to assist their children. However, they will remain in debt and can risk losing the
Social mobility can be improved through social and economic policies. Essentially, all
individuals in the society should be guaranteed to have a good education. This means that they
WEALTH INEQUALITY 5
have the opportunity to go to one of the best schools, and this will allow them to meet and link
up with individuals who can be of assistance in the long term. This allows them to improve their
skills and knowledge, allowing them to find ways of coming up with an innovative idea that will
enable them to be self-employed, and create more jobs in the society (Bernstein & Spielberg,
2015). There should be fewer restrictions when it comes to accessing loans and other services in
the society. This will allow more people to take loans and begin business.
Social mobility will also be improved through an increase in taxes for the wealthy
individuals, and reducing taxes among the poor. This will allow the poor to have more finances
that would enable them to develop in the society, and lack sufficient finances for their daily
sustenance. Additionally, the taxes from the wealthy can be allocated towards programs to help
the poor. This can involve programs to educate the poor on ways of investing, opportunities for
them and advising them on how they can use their limited finances. This could prove beneficial
To conclude, wealth inequality is a major issue that pervades the American society and is
a barrier to social mobility. Inequality is a major issue in the society. It is characterized by the
differentiation in wealth between the poor that limits the prospects of development for the poor.
Essentially, wealthy individuals will die wealthy while poor individuals from low-income
families have little opportunity to be wealthy, and they will die poor. Inequality is a major social
issue, and it should be resolved to ensure that all citizens in a country can find opportunities to
develop equally.
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References
Bernstein, J., & Spielberg, B. (2015, June 5). Inequality Matters. Retrieved from The Atlantic:
http://www.theatlantic.com/business/archive/2015/06/what-matters-inequality-or-
opportuniy/393272/