Wednesday, May 14, 2014

Income Equality is not Feasible

A common cause fought for in today's world is equality. Politicians everyday seem to take a stand for the poor of America, and commonly state that the middle class has declined in our country.

But is this really true that the middle class has declined, and that income inequality should be a real issue that we must amend?

What has really happened is that more Americans are making more money and so there has been in increase in the number of Americans in the top income percentiles. The income for everyone else, also has seen increases as well with time. 

And according to the Census Bureau, in 2012, the percentage of households with no earners ranges from 61% in the lowest fifth income quintile to 3% in the highest fifth income quintile. This means that the number of people in households directly affects the amount of income earned. Also, in this same study, it has been proven that the marital status, age, work status, and education impacts the amount of income people earn. Some of the main causes for inequality of income in America have to do with not staying in school, not getting married, families not staying together, and work status. 

Also, inequality, under a free market, is only natural. People have the freedom to choose where they want to work and what opportunities they would like to take advantage of. 

There is no way possible that our federal government could survive by giving everyone the same income. If you just look around you today, at the US economy in action, you can tell that people are being more careful with their money than they were before the recession. This is due to the increased taxes, and inflation, along with other factors of the recession. 

The downfall of Social Security, in addition, will be because too many people in the coming years will be older Americans looking for pension. But the system cannot afford it. With the rise of the older population, this also means fewer of the younger population, who is the working population that pays for the social security payments made today to retirees. For these reasons and others, distributing the wealth can only cause the downfall of our economy.