Economic Inequality and Gentrification, Assignment Essay

Economic Inequality and Gentrification, Assignment - Essay Example On the contrary, the income of top 1% in the society has been rising, further widening the inequality gap. To compound the problem of the inequality, the cost of traditional avenues of self-improvement like higher education has been exponentially increasing. In 1978, a typical male US worker was earning $48,000 a year (adjusted for inflation) but by 2010, the median wage had dropped to $33,000. Meanwhile, during the same period, the average person in 1% top bracket was earning $390,000, by 2010, the amount has almost doubled to $1,100,000. Something must have happened in 1970’s (Chaiken , Silverstein & Kornbluth , 2013). In the film, Reich argues that in 1970’s, combination of anti-union legislation and market deregulation worked together to create an economic boom but less of the wealth trickled down to the middle class (Chaiken , Silverstein & Kornbluth , 2013). But the problem was noticeable as the women we entering the market and working hours were rising recouping the lost income. Furthermore, during the same period house prices were raising allowing people to borrow. Moreover, in 1970’s there was underinvestment in education. The tuition fees were introduced hampering any hope of higher education among many people in the middle class. One of the voice in the film, Nick Hanauer’s, billionaire, believes that he does not pay enough tax. Nick continues to argue that hammering the middle class, the main drivers of the economy is wrong. The middle class are the one who buy products and services, thus creating demand, which in turn leads jobs and more taxes. The economic system puts top 1% at the center of the economic universe as the job creator instead of the middle class (Chaiken , Silverstein & Kornbluth , 2013). There is also a need to make the poor a priority. The eradication of poverty policies need to be discussed and addressed on national platform. USA needs to re-think the main strategies that are being