ECONOMIC INEQUALITY
Presented by Adam, Andrea, Bill, Jerry, Shane
The gap between the rich and the poor in the
United States is much too wide. It must be
narrowed for every citizen to have the
opportunity to achieve the core ideals of our
democracy (life, liberty, and the pursuit of
happiness).
History 1600-1900
1607 Settlers land at Jamestown, Virginia
1619 The start of African people being forced to come to America as slaves
1788 the Constitution is ratified
1796 federal government selling land for $2 per acre
1808 Slave trade banned but not slavery
1830 Indian Removal Act
1861 11 southern states secede, form confederacy and the civil war begins
1863 Emancipation Proclamation
1865 Confederacy collapses war is over
1870 Jim Crow laws
late 1800s industrialization begins
History – 20th Century
1929 Stock market crashes, start of the Great
Depression
1932 FDR elected New Deal
1935 Labor Relations Act- right to form unions
1939-1945 World War II
1950 start of the Civil Rights Movement
1950s Baby Boomers
1980s Reaganomics
1990s technology boom
Share of wealth held by the Bottom 99%
and Top 1% in the United States, 1922-2007.
Wealth Distribution in the United States
Total Net Worth
Top 1 percent
Next 19 percent
Bottom 80 percent
1983
33.8%
47.5%
18.7%
1989
37.4%
46.2%
16.5%
1992
37.2%
46.6%
16.2%
1995
38.5%
45.4%
16.1%
1998
38.1%
45.3%
16.6%
2001
33.4%
51.0%
15.6%
2004
34.3%
50.3%
15.3%
2007
34.6%
50.5%
15.0%
Wealth Distribution in the United States
“In the United States, wealth is highly concentrated in
a relatively few hands. As of 2007, the top 1% of
households (the upper class) owned 34.6% of all
privately held wealth, and the next 19% (the
managerial, professional, and small business stratum)
had 50.5%, which means that just 20% of the people
owned a remarkable 85%, leaving only 15% of the
wealth for the bottom 80% (wage and salary workers).”
From
http://sociology.ucsc.edu/whorulesamerica/power/we
alth.html .
Income Distribution in the United States
Top 1 percent Next 19 percent Bottom 80 percent
1982
12.8%
39.1%
48.1%
1988
16.6%
38.9%
44.5%
1991
15.7%
40.7%
43.7%
1994
14.4%
40.8%
44.9%
1997
16.6%
39.6%
43.8%
2000
20.0%
38.7%
41.4%
2003
17.0%
40.8%
42.2%
2006
21.3%
40.1%
38.6%
Income Distribution in the United States
“As of 2007, income inequality in the United States
was at an all-time high for the past 95 years, with
the top 0.01% -- that's one-hundredth of one
percent -- receiving 6% of all U.S. wages, which is
double what it was for that tiny slice in 2000; the
top 10% received 49.7%, the highest since 1917.”
From
http://sociology.ucsc.edu/whorulesamerica/power
/wealth.html .
Future Impact
Net Worth
Distribution of Net Worth
70%
60%
50%
40%
30%
20%
10%
0%
Top 1%
Next 19%
Bottom 80%
2007
2020
2030
2040
2050
3000
Top 1% go from 34.6% to 37.7% net worth
Next 19% go from 50.5% to 62.1% net worth
Bottom 80% go from 15% to less than 1% net worth
Future Impact (cont.)
The prognosis of this issue continuing is that by the year
3000, the top 20% of people will own 99% of the wealth,
whereas the bottom 80% will own less than 1%.
The gap is widening at its current trend.
Wealth equals power; therefore the social impact of this
trend is that the bottom 80% will continue to struggle to
gain any power as a result.
The economic impact of this trend of lowering net worth
for the bottom 80% is that there will be a greater need for
services such as medical care and housing.
Politically, the impact will be extreme. The exacerbation of
this issue, as the trend shows, will require major political
changes. The country cannot survive long with 80% of the
inhabitants owning less than 1% of the nation’s wealth.
Class Discussion
Turn and talk to a neighbor about Economic
Inequality
Brainstorm solutions
Option 1
Taxing the wealthy and relying on Non-Profits and Foundations is a
short term solution
Will help to “lop” off the top and raise up the bottom
Paternalistic redistribution in terms of the rich & elite and doesn’t allow
people to provide for themselves
Doesn’t address the lack of access
Economic system needs to be restructured
Remove the social filters and power structures that block the access of the
majority
New regulations should be applied to cap excesses
Put checks on size of financial institutions
Reign in corporate power
Provide guidelines on reasonable proportions for income
Regulate Shadow banking
Give the power of the government back to the people
Evaluate your own CONSUMPTION
*** get from Adam ***
Option 2
End Welfare
Establish a dollar-for-dollar tax credit for
contributions to private charity
Tear down barriers to entrepreneurism and
economic growth
Reform education
What Can Individuals Do
Study the issues
Question the numbers
Research Programs
Volunteer Time and/or Money
Looks for ways to bring control back to the lowest
level needed
Risks and Benefits of Individual Actions
There aren’t any risks for these individual actions
Becoming more informed is a huge benefit
Personally volunteering will help organizations
that need it and will fulfill a need in you to do
more
Bringing more money back to the individuals and
organizations that are directly helping people will
provide more resources to those people
Local, State, National, International Actions
States need to get more control back from the
federal government
Reduce the tax burden on all citizens at all
government levels
Audit existing programs and cut out inefficiencies
Reform Education
Risks and Benefits of Local, State, National
Actions
Federal Government will get smaller as States take
back more control, thus getting more funding for
local services that are more effective
Reducing the tax burden will give consumers the
ability to decide where their money should go
Program that are not efficient will become more
efficient or cut so more funds become available
Improved schools means improved more
knowledgeable public and workforce
Thinking Clearly About Economic Inequality Cato Institute
Lack of clarity and care have confused the public about the
moral significance of income inequality
The dispersion of incomes has a tenuous connection to
human welfare or social justice
The unequal political voice of the poor can be addressed
only through policies that actually work to fight poverty
and improve education.
Income inequality is a dangerous distraction from the real
problems: poverty, lack of economic opportunity, and
systemic injustice.
Delusions of Disparity: Distorting the truth
about income inequality by J. A. Foster-Bey
Since 1967, households have gotten richer, not poorer.
After controlling for inflation, median household
income has risen by almost 30 percent from 1967 to
2003. As a result, most median-income and lowerincome households improved their overall income and
moved up, not down, in the national income
distribution.
The proportion of households with incomes under
$35,000 declined by almost 23 percent, while the
percentage of households making over $50,000
increased by over 77 percent. Indeed, the percentage
of families earning over $75,000 rose by 218 percent
between 1967 and 2003.
Service Learning Projects
Analyze/Audit Welfare and Volunteer Program
Research and Support State Initiatives
Research and Volunteer for Philanthropic
Organization
Sources
Who Rules America: Wealth, Income, and Power http://sociology.ucsc.edu/whorulesamerica/power/wealth.html
Outline of the U.S. Economy - http://www.america.gov/publications/books/outline-ofthe-us-economy.html
United for a Fair Economy – http://www.faireconomy.org
Dēmos – http://www.demos.org
The Revolution Will Not Be Funded by Incite! Women of Color Against Violence
Libertarian Views on Poverty and Welfare: Ending the Welfare State http://www.lp.org/issues/poverty-and-welfare
Thinking clearly about economic inequality http://www.cato.org/pub_display.php?pub_id=10351
Dillusions of Disparity: Distorting the truth about income inequality by J. A. Foster-Bey
- http://old.nationalreview.com/comment/fosterbey200409280847.asp
Conservative Economics 101 - http://spectator.org/archives/2008/03/27/conservativeeconomics-101
Service Learning Sources
K-12 Service-Learning Project Planning Toolkit -
http://www.servicelearning.org/filemanager/downloa
d/8542_K-12_SL_Toolkit_UPDATED.pdf
101 Ideas for Combining Service & Learning http://www2.fiu.edu/~time4chg/Library/ideas.html
Service Learning Ideas and Curriculum Slices http://servicelearning.org/slice
Good Character http://www.goodcharacter.com/SERVICE/service.html
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