Income Distribution and Poverty in the USA

Document Type:Essay

Subject Area:Economics

Document 1

S. According to 2017 Survey of Consumer Finances report, 48. 3% of the American’s wealth is owned by the top 3% while the bottom 90% own only 26% of wealth (Shin et al. In his article (Herault 24), observes that the poverty level among African-Americans is still twice higher compared to whites. In my short essay, have outlined some prime factor which has contributed to high-income inequality and higher poverty index in the U. In their paper (Looney & Kevin 52), noted that it's only through redistribution of wealth, a nation can attain equity and fair distribution of wealth amongst its citizens. One of the advantages of wealth distribution is that it gives all citizens an equal chance to be successful. Looney & Kevin (56), stated that if income is unfairly disseminated the majority of people who comprise of low-income workers suffers from the expenses of very wealthier individuals.

Sign up to view the full document!

The redistribution from those who have and have not increases total utility which gives the poor a chance to have access to proper healthcare services and good education. In his paper (cite), states that wealth redistribution helps those in need to override private property right, have access to basic human needs. Till present, the law about minimum wage has been successful; the policy still protects the interest of low-income citizens from being underpaid by their employers. Taxation This the tool state uses to redistributed income amongst its populace. It is through the taxation system, the government obtains the revenue from workers, firms, and employer to fund its public services such as social security services, provision of transportation infrastructure among others (Taylor, Lance et al.

Sign up to view the full document!

Often higher income groups are taxed more compared to low-paid workers. However, high taxation levied on corporation or employers in proportion to their profit or net income would mount to burden the household. On the other side, high-salaried workers paid considerably less than what they put in. In 2016, the social security system was credited as the best redistribution program which has substantially helped to reduce the level of poverty among the elderly (Shin et al. Medicaid and Medicare programs Medicaid is a program administered by the states which give health and hospitalization benefits to low-income citizens while Medicare is a health safety net set up for the elderly and disabled controlled by the Social Security Administration (Shin et al. In their paper (Shin et al.

Sign up to view the full document!

22), noted that the Medicaid and Medicare have enabled approximately 46% of the elderly, disabled and low-income citizen has access to healthcare facilities. These policies and programs have led to tremendous national cash flow, growth in GDP, increased tax revenue, improved healthcare services among other things to all American (Provenzano 189-196). The study suggests the state should reinforce these laws and strategies and tries to formulate other that can propel better living conditions and equitable distribution of income to all people (Taylor, Lance et al. Works Cited Herault, Nicolas. "How Income Mobility and Income Growth Explain Income Inequality Trends".  SSRN Electronic Journal, 2015, pp.  Wiley,doi:10. 1111/roiw. Provenzano, Davide. "On The World Distribution of Income".  Review of Income and Wealth, vol 63, no. bookfi. net/s/?q=Principles+of+Microeconomics+12th+edition+by+Case%2CKarl.

Sign up to view the full document!

From $10 to earn access

Only on Studyloop

Original template


Similar Documents