INEQUALITY FOR ALL
This is an essay which written to analyze the views that are presented by Robert Reich in the 2013 documentary Inequality for all. The essay is to state whether the views aired in the documentary are true or not and to back up the answer with substantial information. The essay will not only cover Robert Reich`s view but will also focus on other scholars who either agree with him or others who refute his claims.
America is the biggest economy in the world and for this reason there is a lot of scrutiny of their economical status. There has being an ongoing debate which involves very many different scholars about the issue on the inequality of income in the US. Other scholars like Robert Reich have being wording and complaining about the presence of a widening income inequality in the US which led to him being given a role in the documentary Inequality for All which tries to show the presence of inequality among the income earners. With the statistics that can be seen and considering 1 % of the population own 20 % of the wealth and 10 % of the population own 45 % of the total wealth, then there is enough evidence to conclude that income inequality is very present though many choose to ignored.
The wage inequality
In a country whereby the top 1% of the population own at least 20 % of the total income much is to be said about it. The US is among the biggest economies in the world and is considered to be with a wider income inequality than most of the big guns. This is largely blamed to the fact that the US Is practicing the free market largely referred to as capitalism. This is because it is consider that in a capitalism market, one can accrue as much wealth as he or she can without the government interfering. This is as long as it is all through legal means.
The wage inequality in the US is very present and it daily shows itself if not in the day to day life, it shows itself in statistics. The inequality is getting wider every single day but it seems to be a thing few bother to follow up. In a research done it was discovered around 45 % of the American population think that the inequality gap has not increased. This can be seen to be either ignorance or even though the inequality has increased, the middle class have not being affected. This can happen in a situation whereby the middle class can still afford the same things they could afford let’s say 10 years back. To them life is as it was.
Reasons for increased inequality
Technology has done a lot for the modern economy as it has increased not only efficiency but also speed. Technology has led to achievement of things that most considered impossible and which is a good thing. However, people have not being able to see the other part of technology whereby it does also bring a lot of negatives. Technology is more efficient, faster, economical and effective. For this reason it has replaced the laborers who as we all know are at the lower end of the chain. Technology has rendered many people who have less skill jobless. On the other end, it has doubled profits for the big companies which are owned by the top 10 % (Lawrence, 39).
Another reason why the gap is widening is the fact that government taxing does favor the rich. In the last 60 years the tax rate for the rich has been falling which means the rich get to keep more of their income. This can also be seen in the pay disparity whereby the salary of many top executive can be seen to have more than doubled in the last 10 years while for the lower end income earners there is only a small increase.
Even though there are many scholars who are against the inequality, there are some of the scholars who are in support of the inequality. One such scholar in support of the growing inequality is NYU Law School Professor and senior Lecturer at the University of Chicago, Richard Epstein. Richard Epstein states that “if, in fact, it turns out that inequality creates an incentive for people to produce and to create wealth; it’s a wonderful force for innovation” “The notion that high levels of inequality drive innovation is disputed.” His point can be seen to be valid as the inequality does contribute in creating more wealth but it is still not an excuse for so many hardworking middle class and low income earners to suffer in creating wealth that only goes to a few people. There are far much better ways of creating wealth whereby each gets a much fair share than the present state.
Robert Reich for years has campaigned against the widening income gap and in this
documentary he got a chance to stress on the income gap. The income gap is widening and little
can be done to reduce it considering America is a capitalist nation. The US president Barrack
Obama stated that the income inequality is the defining challenge of our time and this stresses
just how deep the gap is.
“Income Inequality Is Rising, but Maybe Not as Fast as You Think.” NewsRx Health & Science [Chicago] 5 Jan. 2014: 16. Print.
Lawrence, Robert Z.. Blue-collar blues is trade to blame for rising US income inequality?. Washington, DC: Peterson Institute for International Economics, 2008. Print.
Reich, Robert B.. Inequality for All: Aftershock: Movie Tie-In Edition.. Chicago: Random House Inc, 2013. Print.
“Renowned Legal Scholar Richard Epstein Co-Authors Wall Street Journal Column With Texas Public Policy Foundation’s Mario Loyola.(Column).” Managed Care Weekly Digest [New York] 20 June 2011: 3. Print.