Economic Inequality and How to Address It 1

Economic Inequality and How to Address It

Dillon R. Anderson

Salt Lake Community College

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The economic inequality that is experienced within the United States varies differently from

anywhere else in the world. In the last 40 years the United States has seen a shrinking of its Middle

class, and while the United states has less wealth inequality then Sweden, the disposable income

available to Sweden’s working class is better by a long shot. A lot of people agree on an ideal distribution

of income where the wealthiest 20% should control 30% of total wealth. In that scenario there is still a

small amount of inequality involved. It was estimated that the wealthiest 20% owned about 60% of the

wealth but in actuality, it is closer to 85%. In my opinion the ideal distribution of income would be

appropriate in the United States. However, it is a very debated topic that I do not see being addressed

any time soon unfortunately. Many factors play into the control of this mass wealth including inherited

wealth or privilege from wealth but there are other issues that address inequality in the U.S. such as

endowments.

There are many variables that are contained within an individual’s endowment. They include

their overall monetary wealth including stocks, bonds, and savings and it also includes their physical

assets such as building properties, vehicles, and machinery. While those are the main endowments

many would recognize, an individual’s endowment also includes their education and work experience,

race, gender, age, and citizenship as well. These endowment’s play an important role in anyone’s social

and professional status and how they may end up rich, poor, or in the middle class.

Individual’s endowments are not the only thing that play a role in someone’s status. One thing

that is interesting is intergenerational mobility and how it works in the U.S. versus other countries.

Intergenerational mobility or “Social” mobility is the change of a person’s social and professional status

between generations. A good example would be my father who was able to retire with more wealth and

prosperity than his father was able to do 30 years ago. My father saw an increase in his status and
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hopefully I can help keep this upward trend going. That is not always the case though. For multiple

reason’s including those that are out of the persons control they could see a decrease in social status

from previous generations in their family.

Economic inequality around the world is not anything new but it is important to understand

where we came from. Quality of life for many countries has increased drastically in the last one hundred

years. Including access to high-quality education, and healthcare. After World War Two many world

economies introduced policies that played favorable to employees and unions of labor sparking the

golden age of capitalism. To keep tackling the issues of inequality we must keep addressing the issues

when we see them and bring light to them. If we do that, I believe that we will keep advancing our

quality of life and create a idea that the whole world can look to.