Income Inequality Discussion

Income Inequality

Income inequality and overall economic inequality is a problem that is facing the contemporary American society. The top 1% of the American population control over 20% of the overall National income. This leaves 99% of the total American population to share the remaining 80% of the national income (Dearing, 2017). Whereas there is a problem of economic inequality in my generation, its impact and effect are likely to be magnified in my children’s generation. The past years have seen a growth in the economic gap between the rich and the poor. If this trend continues unabated, this gap is likely to widen to an alarming level in my children’s generation. As a result, there will be a higher poverty index in that generation: many people will be too poor while few individuals will too rich.

Economic Inequalities

If I were to provide a solution to the problem of economic inequalities, I would create a conducive environment for the flourishing of the small and medium-size enterprises. Such steps will include reducing taxation on this type of business. Moreover, I would cut down the bureaucracy involved in setting up such enterprises. The small and medium enterprises can create jobs many people compared to large enterprises (Dearing, 2017). In the end, the low-income earners can use them as vehicles to gather wealth. The solution will bridge the gap in two ways. For instance, it will create more employment for people who would have otherwise remained unemployed and hence help them earn an income and hence improve their economic status. Dearing, (2017) shows that the solution will provide an avenue for the low and middle-income earners to start a business that will help them create wealth and hence bridge the economic gap. Therefore, this solution will be effective in solving the problem of economic inequality.

Reference Dearing, T. (2017). Social Services, Social Justice, and Social Innovations: Lessons for Addressing Income Inequality. Journal of Business & Economics,8(5),

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