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Inequality in the United States & Around the World

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unequal distribution of income, opportunities, wealth, and material goods

Inequality:

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In the United States, inequality is present in society in a number of ways

Gender

-women still make less money than men, hold fewer that 5% of CEO

positions and 19% of senate seats

Race

-African Americans & other racial minorities make less money than

white Americans

Income

-there is a huge gap between the rich and the poor, and the gap is

growing

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In the USA, the average worth of white households in 2009 was $113,149 compared to African American

households at $5,677 and Hispanic households at $6,325.

The 85 richest people in the world have as much wealth as the poorest half of all humanity, 3.5 billion people.

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Causes of inequality

  • Economic system of capitalism prioritizes profits at the expense of workers (have to compete with lower-priced Chinese and Indian companies who pay their workers much less)
  • Institutions (education and healthcare) are extremely expensive and keep people in a cycle of poverty (Over a lifetime, Americans with college degrees earn 84% more than those with only high school degrees)
  • Wages remain flat

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Consequences of Inequality

  • Social unrest (protests, crime, drugs, and violence in the American South)
  • Political upheaval (populism movement and election of Donald Trump)
  • Poor Public Health: obesity, infant mortality, and lower life expectancy

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Inequalities in Spain

  • What are some examples of social and economic inequalities in Spain?

It would take a Spaniard born into a low-income family 120 years to reach the country’s average income

Over a four-year period, the poorest 20% have “few possibilities of climbing rungs,” and 66% will remain trapped at the bottom

Lack of education:  Spain has the highest early school dropout rate in the European Union, 19.9% in 2015

Nepotism and lack of merit-based system

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Bill Gates: An example of a more responsible billionaire

Access to education and employment training

(combats outsourcing and globalization)

Universal income

Raising taxes on the wealthy

Increased welfare programs

What are the solutions?

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Discussion Questions

  • Is this a problem?
  • Can there be an economic system that avoids inequality?
  • Does communism/socialism work? Why or why not?
  • Is it the duty of the rich to redistribute their wealth to the poor? Is it the duty of the government?