Does Income inequality impair the American dream? In this article Elise Gould, Nick Hanauer, Edward Conrad, Scott Winship debate this question. Some economists argue that income inequality leads to unequal access to opportunity and resources like nutrition and education. But others say that income inequality is not inherently a bad thing.
They point to research that finds that countries with greater inequality also experience more economic growth. I think that income inequality is hard not to have in a country like America with so much economic freedom its hard not to have it. Some people just take more advantage off the economic freedom in America.
http://www.npr.org/2014/10/29/359363643/debate-does-income-inequality-impair-the-american-dream
It definitely makes sense that income inequality would be higher in countries with high economic growth. Economic growth means that there are some people making a lot of money, and then you have those who continue to live with very little money.
ReplyDeleteI think that income inequality definitely affects the allocation of resources throughout the economy. Economic growth can increase the affects of inequality and that would be bad for people with little money.
ReplyDelete