economy Essay

572 Words3 Pages
Evidence shows that despite tax cuts by administration over the past 20 years our economy is in rough shape. The gap between the wealthy and the poor has been continuously growing since the 1970’s and appears that the trend will not change unless some dramatic changes are brought about in our economy. Income distribution is even more unequal than we thought because of the fact that when we get a raise in minimum wage, the earners in that bracket think they are making more. It is mostly due to politicians claiming that we are getting tax breaks. However these tax cuts have been clearly defined to help the top earners in this country. So when it is said that it is more unequal, most of “us” never knew that the rich were not only filthy rich but the government was handing them even more money rather than try to help the people that struggle from paycheck to paycheck. This trend of the top earners increasing their income at a pretty good rate will continue because despite the economy being slow and unemployment at high rates, their income is mostly generated from stocks, dividends and other various investments. So when skilled laborers are laid off and not getting paid, the rich really never have to worry because the dividends from the millions in investment or savings they have will continue to grow their wealth. If our country’s wealth was distributed more evenly, our entire economy would improve. It is shown that the top earners in the country don’t spend as much of their incomes as people that earn less. If they were not earning as much, the ratio of income spent to saved would increase, generating activity. People in the lower classes are already spending more than they make so if they made more they would probably spend about the same amount plus maybe save some of that earned income, allowing their financial lives to be more stable. Either way the

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