Discussion Board 5

Documentary Inequality for All

Introduction

In the documentary Inequality for All, the professor of Chancellor of public policy of California, Robert B. Reich anatomizes the reel facts on an unequal distribution of wealth between the classes and its effects on the American economy. The documentary shows the fact that the middle class, which makes up the 70% of the economy, is keeping on a tightrope from the wealthy and 1% of society, making up the same amount of income as the half of the country. Here, it is also explained that how in late of 1970s inequality became a major issue, just not clarifying the refusing economy but as well as the gross domestic product (GDP) kept on increasing. This problem is increasing due to unparalleled income of American, that increases the prices of housing, health care, college or everyday living cost.

Reich also narrates the huge gap between wages and rising economy which is a serious concern to all Americans consisting of a middle class. According to him, the economy is reaching to a dangerous cycle where low wages is the main reason for low consumer spending; it will harm the economy for all. This documentary is basically inspired by the political and social views and it gives a friendly warning for the exclusively ruling that extreme inequality that will lead to a political issue which will intimidate their ability to rule.

Thesis Statement

The rich of the society spend a very little and they keep that in a locker and save it. So, this condition affects the economy of the country and its growth also.

Body

Inequality snatches the wealth of middle class

Inequality is very dangerous for growing out the proportion that takes down the middle-class members’ services, homes, and diminishing their daily living activities. In Europe, a suggestion is worked that is the lower equality and the greater happiness is going together. According to Robert Frank, in twenty years, the middle-class members are earning about the same and the top earners are earning notably more than before as because they are the part of the most successful entrepreneurs in the booming business (Frank, 2013). In the 1990s, when the stock market of the United States was boomed, the major American households owned no corporate stock and the richest 11% of households own almost 79% of corporate stock. The top 1% of the households holed approximately 42% of the corporate stock (Gilbert, 2014). This example clearly shows how inequality snatches the wealth of the middle class.

Inequality affects the growth of the economy

A recent survey from Pew Research Center (PRC 2014) shows that the gap between the rich and poor is considered a major challenge by more than 60% of respondents worldwide (Nolan et al., 2014). It directly affects the global growth and employment and creates the global financial crisis. It can be a signal for lack of income mobility and the opportunities (Dabla-Norris et al., 2015).

Inequality is good

The unusual efforts, imaginations, innovations, or the perseverance result of the goods and services that are bought by millions of people at least slightly better off, sometimes the rich almost beyond the belief. Inequality sometimes works as a consequence of progress (Keeley, 2014). According to Princeton Economist Angus Deaton argues, it focused on the inequalities initially in the health care that was characterized in diagnosis, treatment, and prevention (Watson, 2015).

According to the political scientist Hacker and Pierson, the unequal political system is the basic reason of growing class inequality. It does not affect the economy, it’s only about the power of one who can only control the government not the economy of the country (Gilbert, 2014).

Conclusion

When the transitional reforms in the United States that mean in late of the 1990s, there were huge changes were noticed. That was the share of the household expenditure on food in total consumption was doubled, and the expenditure on housing increased with five times of the actual one. Not only for this time but today also the rice people have enough money to save it in the locker and they are earning more day by day due to most of them are engaged as the entrepreneur of the booming businesses. So, this stored money can’t be circulated and monetary inflation is stopped. It directly affects the economy of the country and stops the growth of the economy.

This section discusses the documentary Inequality for all and each and every point how inequality harms the economic growth and the middle-class members. The unparalleled income of American is the main issue of making inequality. Mainly when the people are using their advantages unfairly for themselves by contriving, often through the government, for acquiring, the bad inequality occurs. So, the rising inequality is not only the psychological costs but as well it becomes tangible costs also.

Reference

Frank, R. (2013). Falling behind: How rising inequality harms the middle class (Vol. 4). Univ of California Press.

Gilbert, D. (2014). The American class structure in an age of growing inequality. Sage Publications.

Dabla-Norris, M. E., Kochhar, M. K., Suphaphiphat, M. N., Ricka, M. F., & Tsounta, E. (2015). Causes and consequences of income inequality: a global perspective. International Monetary Fund.

Nolan, B., Salverda, W., Checchi, D., Marx, I., McKnight, A., Tóth, I. G., & van de Werfhorst, H. G. (Eds.). (2014). Changing inequalities and societal impacts in rich countries: Thirty countries' experiences. OUP Oxford.

Watson, W. (2015). The Inequality Trap: Fighting Capitalism Instead of Poverty. University of Toronto Press.

Keeley, B. (2014). Is inequality good or bad for growth?. Organisation for Economic Cooperation and Development. The OECD Observer, (301), 12.