Sunday, October 12, 2014

Nobody Knows What To Do

Income inequality has been growing since the early 1970's because of great support for free market capitalism. Free market capitalism causes such great income inequality to be higher than in other developed economies. Much of the population lives in poverty, while most of the income growth has been for the middle and upper class. Meanwhile, many Americans think income has not been increasing when in fact it has been for decades and for the most recent few years. There is much disinformation supporting income inequality, and many debate whether capitalism causes income inequality by questioning whether corporatism is the actual cause. Many economists have laid blame on other factors, but it is still not well understood exactly why income inequality has been growing so much for so long. Many supporters of income inequality argue that creates an incentive to create wealth, innovate, and product. Still, that notion in widely disputed. It is also important to address that more income inequality been argued by many to cause the harm to the economy by lowering output, which research appears to confirm. Why is real gross domestic product growing much faster than real median household income and how much harm does it cause to the national economy? These questions are the subject of many ongoing debates, and the great amount of disinformation and dishonesty from both sides only exacerbates the situation. Too many interests are involved in this issue to make a solution easy or quick. Simply slowing down the growing income inequality is a monumental task that even the president may not handle without painful consequences without even considering lowering that very income inequality. Income distribution may likely continue its current trajectory of increasing disparities between lower and higher earners, so is it in the best interests of someone to make the best out of the situation? How to make the best out of the situation without incurring huge costs? I believe nobody truly knows the answers to those questions, and anyone that claims to should do everyone a favor and stop claiming that. Furthermore, blaming a specific individual or program only demonstrates someone's incompetence and/or political or ideological bias on the issue because the issue is much deeper than that. Capitalism has important side effect called income inequality, and anyone that even tries to argue that income inequality has not actually been increasing recently or in the long-term should do themselves a favor and do some research because that is not what the facts indicate.

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