Income inequality in the USA has been recorded since immemorial. The USA is composed of people from different races and socioeconomic statuses. In 2021, it was clear that 70 percent of the country’s wealth was owned by 10 percent of its population. In addition, 50% of the population own less than 3 percent of the country’s wealth. This means a half of the wealth in the country is owned by about 97% of the people (Oxfam International, 2022). This means those of lower status are significantly more than those of other socioeconomic statuses.
Many people have argued that wealth inequality is bad for the country. This is because it increases the gap between the rich and the poor, leads to suffering among the poor, increases crime rates, and promotes animosity in the country (Oxfam International, 2022). Individuals suffering from mental issues due to economic hardships are violent and may be involved in mass shootings. Thus, it is bad to promote and maintain wealth inequality. In reality, however, wealth inequality is good and carries several benefits.
The rich people provide money for investment to the less rich ones. In a society where there are both the rich and the poor, the rich people are valued and celebrated because they are a source of income (Pettinger, 2021). In most cases, they provide capital for investment and they create and own means of production such as land, machines, and so on. Resourceful people fund societies and create employment. As a result, the poor or those who are less endowed depend on them for jobs and livelihood. It is against this backdrop that wealth inequality is important. Assuming that everyone was poor, the society would lack entrepreneurs and industry owners who could provide jobs and resources to the less rich.
Inequality acts as a motivator for people to work. It is well known that people will want to work to get money and improve their livelihoods. According to Abraham Maslow’s hierarchy of human wants, people are motivated by their needs to work. After satisfying their physiological needs, people work to fulfill their security needs. Finally, they endeavor to serve self-actualization after fulfilling all the other needs. In a society where some people have resources, and while others do not, those without are forced to work for those who have money. If everyone had money, it could be difficult for people to work because they have everything they want. Therefore, it is good and necessary for some people to have wealth and others not to so that enough labor can be available (Todd, 2013). The colonizers were wise during the colonial period in both America and Africa. They subjugated their subjects and ensured they were poor enough. In addition, they increased the taxes and set tough rules to compel the victims to work. Due to the need for money to pay taxes, the colonized had to work. This promoted the economic status of the colonies and led to development. The more the colonized were made poor, the more they worked, and the more developments were inserted in the colonies. Therefore, inequality makes people work hard, hence leading to economic growth in the country.
Wealth inequality promotes security and stability. As noted, people argue that when wealth inequality is promoted, insecurity increases (Siripurapu, 2020). However, this is the opposite. In a society where inequality is rife, the poor focus on working to getting money while the rich focus on investing. Everyone is involved in his daily hustles. By doing that, they are not idle and do not have time to think of committing crimes, leading to stability. Further, poor people are easy to control and manipulate. The government and resourceful people have an easy time dealing with such people. This is contrary to places where wealth is properly distributed and where everyone has money and time to organize and fund criminal activities. In Syria, for example, opposition members had money to buy guns, tanks, sophisticated guns, rocket launchers, and train their fighters. As a result, the government had a hard time fighting and suppressing those in opposition. If the country was such that inequality was rampant, it could have been easier to handle and suppress the fighters.
Poor and rich people are all important in society. There is a symbiotic relationship that exists between the two. In most cases, poor people are less educated, less ambitious, less motivated to work, and less aggressive (Todd, 2013). Rich people are generally aggressive, focused, self-disciplined, and difficult to manipulate. Against this backdrop, the rich use the poor in implementing their agendas and running their industries. The entrepreneurs can manipulate and use those less endowed to run their businesses. Therefore, everyone is important and has a space in society. It is thus good and beneficial when a society has wealth inequality.
Wealth inequality is an aspect and a pillar of democracy and free trade. Clearly, different people are paid differently and spend their money differently (Pettinger, 2021). A 5-star footballer who has many fans cannot be rated and paid the same as a 2-star footballer who has not mastered football skills and has few fans. In addition, a neurosurgery should not be paid the same as a street sweeper because each has invested differently to get the skills. The CEO of a company like Google cannot be paid as a CEO of a small company delivering foodstuffs and the village level. Each person will earn differently and be at a different social-economic status. In addition, some people spend their money wastefully while others buy assets and invest wisely. If democracy and the rule of law were to take place, then wealth inequality would stay. It is fair and necessary for people to own different wealth levels. Thus, inequality is good for Americans as it signifies that democracy is at play.
In summation, Wealth inequality is good for America as it motivates the poor to work. This leads to economic growth and development as the state will have laborers and possibly cheap and docile workers. Wealth inequality creates peace and harmony in a country and creates people that the rich can use in their businesses. Therefore, contrary to several arguments propagated over the years, wealth inequality is good. It promotes and strengthens democracy, which is necessary for any mature state. Different wealth levels are common and constant in any country, whether capitalistic or communist. Therefore, it will remain over the years.
References
Oxfam International. (2022, May 23). Pandemic creates new billionaire every 30 hours — now a million people could fall into extreme poverty at same rate in 2022. https://www.oxfam.org/en/press-releases/pandemic-creates-new-billionaire-every-30-hours-now-million-people-could-fall
Pettinger, T. (2021, February 3). Pros and cons of inequality. Economics Help. https://www.economicshelp.org/blog/3586/economics/pros-and-cons-of-inequality/
Siripurapu, A. (2020, July 15). The U.S. inequality debate. Council on Foreign Relations. https://www.cfr.org/backgrounder/us-inequality-debate
Todd, M. (2019, October 4). The Benefits of Wealth Inequality (and Why We Should Not Fear It). Pacific Standard. Retrieved July 17, 2022, from https://psmag.com/economics/benefits-wealth-inequality-now-fear-67567
write