Income Inequality in The United States

Income Inequality In The United States

Distribution of income in the United States has been the subject of study by scholars and institutions. Data from a number of sources indicate that income inequality has grown significantly since the early 1970s, after several decades of stability. While inequality has risen among most developed countries, and especially English-speaking ones, it is highest in the United States.

Studies indicate the source of the widening gap (sometimes called the Great Divergence) has not been gender inequality, which has declined in the US over the last several decades, nor inequality between black and white Americans, which has stagnated during that time, nor has the gap between the poor and middle class been the major cause—though it has grown. Most of the growth has been between the middle class and top earners, with the disparity becoming more extreme the further one goes up in the income distribution. Upward redistribution of income is responsible for about 43% of the projected Social Security shortfall over the next 75 years.

A 2011 study by the CBO found that the top earning 1 percent of households gained about 275% after federal taxes and income transfers over a period between 1979 and 2007, compared to a gain of just under 40% for the 60 percent in the middle of America's income distribution. Other sources find that the trend has continued since then. However, only 42% of Americans think inequality has increased in the past ten years. Income inequality is not uniform among the states; as measured by the Gini coefficient: after tax income inequality in 2009 was greatest in Texas and lowest in Maine.

Scholars and others differ as to the causes, solutions, and the significance of the trend, which in 2011 helped ignite the "Occupy" protest movement. Education and increased demand for skilled labor are often cited as causes, some have emphasized the importance of public policy; others believe the cause(s) of inequality's rise are not well understood. Inequality has been described both as irrelevant in the face of economic opportunity (or social mobility) in America, and as a cause of the decline in that opportunity.

Read more about Income Inequality In The United States:  History, Significance of Inequality, Income At A Glance

Other articles related to "income inequality in the united states, income, state":

Income Inequality In The United States - Income At A Glance
... Median income levels Households Persons, age 25 or older with earnings Household income by race All households Dual earner households Per household member Males Females Both sexes Asian White, non-hispanic ...
Income - Accountancy
... Accounting Standards Board (IASB) uses the following definition "Income is increases in economic benefits during the accounting period in the form of inflows or enhancements ...
Income Tax
... An income tax is a tax levied on the income of individuals or businesses (corporations or other legal entities) ... Various income tax systems exist, with varying degrees of tax incidence ... Income taxation can be progressive, proportional, or regressive ...
Yield (finance)
... (common and preferred, and convertible), fixed income instruments (bonds, notes, bills, strips, zero coupon), and some other investment type insurance products (e.g ... It may be used to state the owner's total return, or just a portion of income, or exceed the income ...
Income Tax - Types - Personal
... A personal or individual income tax is levied as a percentage of a person's wages and salaries, with some deductions permitted, along with the net ... Income tax systems typically offer exemptions, deductions, or credits which lessen the total tax liability these are frequently a method of rewarding income-use-patterns encouraged by the ... Tax structures may allow losses from one type of income to be counted against another ...

Famous quotes containing the words united states, states, united, inequality and/or income:

    The rising power of the United States in world affairs ... requires, not a more compliant press, but a relentless barrage of facts and criticism.... Our job in this age, as I see it, is not to serve as cheerleaders for our side in the present world struggle but to help the largest possible number of people to see the realities of the changing and convulsive world in which American policy must operate.
    James Reston (b. 1909)

    The end of law is not to abolish or restrain, but to preserve and enlarge freedom. For in all the states of created beings capable of laws, where there is no law, there is no freedom.
    John Locke (1632–1704)

    The rising power of the United States in world affairs ... requires, not a more compliant press, but a relentless barrage of facts and criticism.... Our job in this age, as I see it, is not to serve as cheerleaders for our side in the present world struggle but to help the largest possible number of people to see the realities of the changing and convulsive world in which American policy must operate.
    James Reston (b. 1909)

    A man willing to work, and unable to find work, is perhaps the saddest sight that fortune’s inequality exhibits under this sun.
    Thomas Carlyle (1795–1881)

    Italy is such a delightful place to live in if you happen to be a man. There one may enjoy that exquisite luxury of Socialism—that true Socialism which is based not on equality of income or character, but on the equality of manners. In the democracy of the caffè or the street the great question of our life has been solved, and the brotherhood of man is a reality. But it is accomplished at the expense of the sisterhood of women.
    —E.M. (Edward Morgan)