Essay on Inequality in the Distribution of Wealth

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Essay on Inequality in the Distribution of Wealth

Inequality in the distribution of wealth is an issue in the majority of societies. The US faces a similar problem where there are considerable disparities in the distribution of income and wealth. The existing studies and statistics reveal that Hispanics are hugely affected since they occupy the lower end in the distribution of wealth and income compared to other ethnic groups. The problem leads to the reduced participation and representation of Hispanics in democracy due to the lack of influence. The government has not been successful in resolving the issue, even with the existence of bureaucracy. I would partner with the government to support the development of a policy for improving the minimum wages expand the infrastructure to revamp the capacities of the low-income communities.

Inequality in the Distribution of Wealth

Inequalities in the distribution of wealth is a common issue in society. There exist extreme disparities where a small percentage of the population has a high concentration of income that the biggest percentage of the population. The inequalities in income create huge gaps between wealthy and low-income households. Income inequality and disparities can be viewed through a diverse array of segmentation based on the different types of distributions (Lindert and Williamson, 2016). For example, the differences could be analyzed based on ethnicity, gender, occupation, geographic location, and historical income. In this scenario, Hispanics are earning the lowest compared to other ethnic groups such as Asians, Whites, and African Americans. Hispanics are significantly affected by the unequal distribution of wealth compared to other ethnic groups despite the efforts put by the government to eradicate the problem.

Importance of Resolving Unequal Distribution of Wealth

Wealth inequality is a threat to economic growth for the country, but it causes a wide range of problems in the long-run. When rich people receive high income, they are likely to save more, and the total consumer spending would fall, thereby increasing the unemployment rates (Lindert and Williamson, 2016). Additionally, whenever households have constant and fixed expenses, low incomes affect their living standards. For example, in case an income remains static or falls, they have to borrow to meet their monthly expenses. This style of life is not sustainable since debt payments are likely to exceed the abilities to repay, hence creating a credit to dry up. Consequently, low-income populations are likely to lose their abilities to meet necessities and even their homes. Inequalities in income distribution segregate people on their incomes where an ethnic group would feel more disadvantaged than the rest. As such, the perspective would destroy the peaceful relationships existing in the community. Therefore, ethnic wealth inequalities would assist in resolving issues of unemployment, improving the standards of living, and promoting a peaceful society for political and economic growth.

How Unequal Distribution of Wealth Is Affected by Federalism

The federal government has affected the unequal distribution of wealth due to the lack of effective policies to promote equality in access to education, employment, and even citizenry. The flawed immigration policy has disadvantaged Hispanics since their low-incomes have been attributed to immigration patterns. The population of the unauthorized migration of the Hispanics between 1970 to 2016 grew by 50%. (Kochhar and Cilluffo, 2018). Notably, the population of these immigrants is at the lower end in income and education distribution. A research conducted in 2017 revealed that by 2015, foreign-born Hispanics aged 25 and below had not graduated from high school, an unusual trend compared to the rest of Americans, which is at 13%. Hispanic immigrants with a degree only constituted only 11% of the population compared to Americans, which had an overall of 31% (Kochhar and Cilluffo, 2018). Hispanics hold an influx of lower-income and skills that contribute to huge gaps in wealth distribution when compared with other ethnic groups.

The federal government has not effectively managed to harness income distribution and access to resources and opportunities for all. Wealth accumulation of an individual may not solely rely on the inter-generational legacies. For instance, individuals from similar backgrounds have different levels of income that determine their abilities to acquire wealth through savings. Killewald and Bryan (2019) found out that the place of residence, home-ownership, household characteristics, and education and income have significant impacts on wealth accumulation. A lack of strategic positioning creates a challenge for a household or a particular ethnic group to acquire wealth. Therefore, the inability of the federal government to close the substantial racial disparities in home-ownership, marriage, income, and educations keeps the gap growing over the years. These factors explain the primary cause of the Hispanics being at the lower end in income accumulation due to a lack of strategic positions in exploiting them.

Infringement of Civil Liberties by Unequal Distribution of Wealth

The existing research suggests that government policies usually meet the preferences held by the populations with higher income (Gilens, 2012). The most affluent citizens have a more significant say in policy development where a majority of the Africans have little or no say in such scenarios. Hence, the achievement of ideal political equality is a challenge due to the considerable gaps in economic inequalities. Gilens (2012) notes that the US government has been a plutocracy more than democracy for many decades. There is an unequal say in the development of government policies where low-income households have insignificant contribution democracy compared to the most affluent ethnic groups.

Wealth inequality seems to have a similar impact on economically advanced democracies. Economic inequality disadvantages low-income people because the populations tend to have reduced political representation (Rosset et al., 2013). A huge gap in wealth distribution makes the government significant represent the middle- and high-income classes while the low-income population becomes underrepresented. Additionally, low wealth accumulation is likely to lower the levels of political interest, electoral participation, and political discussion since the households have reduced confidence in such practices. The unequal distribution of wealth tends to increase the relative power of the affluent people, while the inequality undermines political equality.

The concept of unequal wealth distributions is well explained in the relative power theory. The model views wealth as a political resource where the holders use it to exercise power over those who do not have it. The theory suggests that in a scenario where there are huge gaps between the rich and the poor, the richer are likely to gain more wealth while the poor become poorer (Solt, 2008). The rich use their resources to increase their political engagement and influence in a government, thereby dominating the low-income populations. In the US, Hispanics are at the lower end of the welcome distribution, and therefore, their political participation is reduced. Underrepresentation in the government offers an opportunity for the wealthier races to create policies that favor them or promote their wellbeing. As such, Hispanics and other low-income races, such as Blacks, are likely to have their civil liberties reduced due to their low economic power.

Process of Bringing Unequal Distribution of Wealth to Congress

The process would begin with an investigation of the issue of unequal distribution of wealth amongst the various ethnic groups. Invitation of media personalities or liaising with them would attract media attention. The exploration should offer an account of the races in diverse work environments and occupations, potentially involving the causes of the problem. Experts and individuals holding the high ranks, including the president or the office of the presidency, can also be interviewed or allowed to express their opinions. A journalist should suggest ways of promoting equal distribution of resources across all the races by offering alternative solutions, particularly those that might have been used in other governments. The ability to explore an issue and offer suggestions better than the existing policies would catch the attention of the legislators and even other citizens, thereby increasing the weight of the matter. Consequently, legislators would seek to bring the issue into Congress, where it would be discussed through the established procedures to become a bill.

Congress has the primary responsibility for making laws. The process of making law is not an easy task since the procedural obstacles hinder the proponents while favoring the opponents of the legislation. Making of law involves complex written procedures that need to be followed whenever a member of the Senate or House introduces a bill (Adler & Wilkerson, 2013). The introduction of a bill into Congress that would help resolve the unequal distribution of income might be an uphill task considering the enormous government policies seeking to promote economic equalities through incomes, education, and political representation, amongst others.

However, regardless of the ongoing debate of the unequal distribution of wealth, the media is a useful tool that could be used to draw the attention of the lawmakers on the issue. Melenhorst (2015) notes that existing studies reveal that journalists exert a significant influence on the critical aspects of politics. As such, the media could be used to explore the concept and variations in the unequal distribution of wealth due to ineffective government policies. The income levels and access to quality education and other opportunities need to be explored to a larger extent to create a concern for all the citizens. The influence of the media can be used to acquire legislators’ attention to develop legal regulations of the issue. Melenhorst (2015) also notes that politicians are always critical whenever responding to the attention of the media, either directly or indirectly.

The Attention of the Current President Regarding Unequal Distribution of Wealth

The current president, Donald Trump, was a huge beneficiary of the unequal distribution in rising to power. Sherman (2016) reported that Trump was highly voted the middle-class and former middle-class since this group of people felt they had been ignored for long. Their hope, mortgages, and jobs were gone due to the perception that income inequality and poverty are problems for the minorities instead of the ideal view that they are affected by class, race, and ethnic background. Trump was expected to develop policies that would help resolve social inequalities and making America great again, a common slogan during his presidential campaign.

However, President Trump has not successfully closed the gaps in the unequal distribution of wealth. Instead, a recent study revealed the income gap between the rich and the poor has been growing over his reign, thereby pushing the country to suffer from potentially deadly effects. (Fadulu, 2019). The repercussions of the expanding gap are that the wealthier people are living longer lives while the poor shorter lives. The current government recorded the lowest poverty rate in 2018 since 2001, which stood at 11.8%. Unfortunately, the median household was $63,000 the same year, which remained unchanged from 2017. The income gains also slowed since an increase was recorded in 2016. Consequently, individuals from low-income ethnic groups such as Hispanics are likely to have their expectancy rates further reduced due to the difficulties they face in old age. The current government has not done adequately to solve the unequal distribution of wealth amongst ethnic groups.

Impact of Bureaucracy on Unequal Distribution of Wealth

Research on the impact of bureaucracy on the unequal distribution of wealth is limited. Henderson et al. (2007) suggest that effective and stable bureaucratic systems can help create strong state economic agencies. The organizations would encourage businesspeople to invest while the government expands the public infrastructure. The agencies help to create room for reducing the occurrence of corruption by allowing the cost of hidden taxation, especially in the private sector. Bureaucracies are encouraged to increase the viability of an economy for investors, thereby creating more employment opportunities for people. Bureaucracies have been found to support economic growth but no close correlation with the distribution of wealth.

However, Utama (2014) noted that low quality of bureaucracy would create room for the leaders to pursue their interests. As a result, the inequalities in the distribution of wealth and income would be rampant. Although it might not be clear about the impact of bureaucracy on the distribution of wealth, it suggests its ineffectiveness in addressing the issue since the current government has not managed to close the gap.

Current Organizations Addressing the Problem

The government has the primary responsibility for solving the unequal distribution of wealth issue in the country. It uses its agencies, including the legislature, to develop policies and the Federal Reserve that oversee the management of income and wealth. The primary changes conducted by governments in the management of the distribution of wealth include taxation and the stock market. The government agencies harness measures of distributing income across the various households, such as the Tax Cuts and Jobs Act, to control the accumulation of wealth (DeVore, 2020). For instance, the tax reform of Trump focuses on an overhaul of tax codes, corporate tax rates, and tax benefits. Through such measures, the government seeks to protect the interests of the low and middle-income classes.

Partnering with the Government to Solve the Issue

I could partner with the authorities and legislators, either local, state, and federal government, to eradicate unequal wealth distribution in different ways. I would suggest that the government makes employment more profitable, particularly for low-income employees. Raising the minimum wage would a way of improving the financial capacities of households from the low-income class. As such, this technique would help the government make workers expensive without hurting them. Another strategy for making the workers expensive is to increase the earned income tax credit and to offer subsidies for the child-care services for low-income families. Consequently, easing the occupational licensing needs would create effective paths for more people to assume higher paying job positions.

I would join and applaud governments’ efforts to expand the infrastructure, especially in regions covered by low-income households. Better schools, hospitals, and transport networks are likely to improve the prosperity and productivity of workers and businesses. Additionally, increasing digital connections, particularly for the sparsely populated populations, would offer increased opportunities. The overall expansion of the infrastructure would enable minority communities such as Hispanics to grow their capacities through businesses, education, and quality care to facilitate their efforts in the accumulation of wealth. As such, rural areas or regions occupied by low-income communities would support the growth of decent homes for minorities to access developmental subsidies and relaxed zoning for their families. Therefore, since the government uses policies and public mobilization to solve the unequal distribution of wealth, I can partner with it by joining and applauding such efforts.

Conclusion

The common issue in my society is the unequal distribution of wealth amongst the communities. Hispanics have been the most affected due to the high rates of poverty and the occupation of low-income paying jobs. The significance of solving the unequal distribution of wealth is to improve the living standards of the community and the entire country. It would also improve employment and promote a harmonious society. The federal government has affected the unequal distribution of wealth due to the lack of effective policies to promote equality in access to education, employment, and even citizenry. The issue decreases the low-income engagement and interests in politics, thereby prompting them to willingly and unwillingly follow the policies developed by the most affluent ethnic groups. The current government has not been effective in resolving the issue since the gap between the rich and poor is widening.

References

Adler, E. S., & Wilkerson, J. D. (2013). Congress and the Politics of Problem-Solving. Cambridge University Press.
DeVore, C. (2020). The Trump Tax Cut Is Two Years Old, Where Are the Jobs Being Created? Forbes.com. Retrieved from https://www.forbes.com/sites/chuckdevore/2020/03/05/the-trump-tax-cut-is-two-years-old-where-are-the-jobs-being-created/#7c7c5f4f2bfe
Fadulu, L. (2019). Study Shows the Income Gap Between Rich and Poor Keeps Growing, with Deadly Effects. New York Times. Retrieved from https://www.nytimes.com/2019/09/10/us/politics/gao-income-gap-rich-poor.html
Gilens, M. (2012). Affluence and Influence: Economic Inequality and Political Power in America. Princeton, NJ: Princeton University Press.
Henderson, J., Hulme, D., Jalilian, H., & Philips, R. (2007). Bureaucratic Effects: ‘Weberian’ State Agencies and Poverty Reduction. Sage Publications, 41(3): 515–532. https://doi.org/10.1177/0038038507076620
Killewald, A., & Bryan, D. (2019). The Production of Wealth Gaps Between Whites, Blacks, and Hispanics. Harvard.edu. Retrieved from https://sociology.fas.harvard.edu/news/production-wealth-gaps-between-whites-blacks-and-hispanics
Kochhar, R., & Cilluffo, A. (2018). Key Findings on the Rise in Income Inequality within America’s Racial and Ethnic Groups. Pew Research Center.
Lindert, P. H., & Williamson, J. G. (2016). Unequal Gains: American Growth and Inequality since 1700. Juncture, 22(4), 276-283. https://doi.org/10.1111/j.2050-5876.2016.00874.x
Melenhorst, L. (2015). The Media’s Role in Lawmaking: A Case Study Analysis. The International Journal of Press/Politics, 20(3), 297-316. https://doi.org/10.1177/1940161215581924
Rosset, J., Giger, N., & Bernauer, J. (2013). More Money, Fewer Problems? Cross-Level Effects of Economic Deprivation on Political Representation. West European Politics, 36(4), 817-835. https://doi.org/10.1080/01402382.2013.783353
Sherman, E. (2016). What a Trump Administration Might Mean for Income Inequality. Forbes.com. https://www.forbes.com/sites/eriksherman/2016/11/12/what-a-trump-administration-might-mean-for-income-inequality/#232677643a78
Solt., F. (2008). Economic Inequality and Democratic Political Engagement. American Journal of Political Science 52(1): 48–60. https://doi.org/10.1111/j.1540-5907.2007.00298.x

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