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microeconomic topic.

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microeconomic topic.

Category: Research Paper

Subcategory: Economics

Level: College

Pages: 5

Words: 1375

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WEALTH INEQUALITY IN THE US SINCE 1913
Introduction
To come up with a wealth estimate, this paper capitalizes on incomes as reported by each taxpayer and giving an account of each asset that fails to generate taxable income. To effectively test the capitalization method, three micro data sets are employed in order to adequately enable the observers to come up with parameters that would ensure clear observation of both individual wealth and income. Notably, the concentration of wealth was considerably high at the beginning of the 20th Century and saw a remarkable fall from 1929 to late 1978. Since then, there has been a continual increase in wealth. Wealth shares have increased from 7 % to 22 % in 1978 and 2012 respectively, a perfect case as witnessed in 1929. Comparatively, the top wealth holders United States are younger than the lot of 1960s.
Economic inequalities in any given country come from over-concentrations of power and wealth. Distribution of power imbalances can result in lack of representation in governments for some people, emergence of power elites, loss of personal liberty and freedom, and abuse of governance. This can lead to one obvious spell, genocide and civil unrest, which are two extreme examples. Imbalances and inequality in wealth distribution can result in loss of social mobility and economic opportunity, emergence of permanent lower or underclass, unemployment, homelessness, diseases…

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