Income inequality has been a controversial issue in the United States. People are discussing what is happening in terms of distribution of wealth and income, how this economic system works, and how it poses a problem in our society. I recently watched the documentary "Inequality for All" and learned a lot about income inequality. It might also help you learn a bit about it too.
In this film, researchers Emmanuel Saez and Thomas Pikkety looked at data on income. They looked at the earnings of the people at the top and those in the middle class. They found that the income tax was instituted in 1913, and 1928 and 2007 were the two peak years when income got more and more concentrated. They also realized that the middle class went deeper into debt to maintain their living habits while their income remained stagnant.
Although there is no official definition of the middle class, it is interpreted as people in our society who are living comfortably. However, this is not true because the median yearly income for the middle class is $50,000, and people are constantly struggling to pay bills with this annual income. It is difficult for the middle class to build wealth especially when they do not have any assets. They also do not know the steps to take to actually build wealth. As a result, upward mobility is actually less than it was before as income inequality started rising.
From watching this film, I have learned that 400 people have more wealth than half of the people in the United States. I learned that consumer spending is 70 percent of the U.S. economy, and the middle class is the class that keeps the economy going. The customers are the job creators, which makes the middle class and the poor the true job creators in our society. In addition to this, due to the technological revolution that began in the 1970s, the old assembly line is gone. There are no longer people working in factories; there are only machines and computers. An example of this is the self-checkout registers that we see in supermarkets that replace people and put them out of a job.
I also learned that the decline in the middle class income was due to the decline of labor unions. Employers have been working to prevent unions from forming and to eradicate unions that already existed. The purpose of labor unions was to protect the rights of workers, and without them there is no one who can secure maximum pay for the workers. Therefore, the wages and benefits of workers start eroding since they do not have a voice.
This film affected me because it made me realize how important the working and middle class are when it comes to our economy. Without the working and middle class, our economy would not function the way it is now since the upper class does not spend much of their money. After watching this film, I was concerned about the working and middle class because they are the classes who struggle the most trying to provide for their families and themselves on a daily basis. As prices for goods increase and our salaries remain stagnant, it becomes very difficult to live comfortably in this society.
Everyday the working and middle class experience adversity and I believe the upper class should share the wealth or at least contribute to consumer spending. If the distribution of wealth and income continues this way, most people will never live comfortably until major changes are made. I also felt upset while watching this film because I know millions of people are experiencing the same hardships I am which is unfortunate. So many people work a plethora of hours each week to receive two to three paychecks a month just to pay bills. The money that is left is barely enough to buy food, clothing, and a metro card or gas for transportation to and from work or school. Hopefully, one day people can implement their solutions to this problem so the economy improves and the wealth is shared among all of the classes.
I would absolutely recommend watching this documentary because it informs people about the economy, consumers and buyers, and the distribution of wealth and income among the working, middle, and upper class. These things are important for us as a society to know, so we can change and adapt to the constantly evolving system.
