What is one counter-argument to the premise that the wealth gap is a serious problem which needs to be addressed? Investments by the upper class create lower-class jobs . You just studied 39 terms!
Why is income inequality a problem in the US?
Income and wealth inequality is higher in the United States than in almost any other developed country, and it is rising. There are large wealth and income gaps across racial groups, which many experts attribute to the country’s legacy of slavery and racist economic policies.
What might Critics of the wealth gap argue?
Critics of the wealth gap might argue that: ... the wealthy become unable to make investments . buying power exceeds the supply from producers. Economic growth will likely decline over time.
How can the government reduce the wealth gap in a mixed market?
How can the government reduce the wealth gap in a mixed market economy? The government can control income levels by placing limits on how much citizens can earn . ... The government can tax members of the wealthy class at a lower rate to address differences in income.
What caused the wealth gap in America?
Income inequality, housing policies, limited educational opportunities, and a lack of support structures are some of the factors that contribute to the gap. Data reveals a growing gap, since the Civil Rights era in the 1960s, in the median wealth across race and ethnicity in the United States.
Which statement best describes the impact of scarcity?
Answer Expert Verified The best way to describe the impact of scarcity would be when consumers must pay for higher prices for many items . This is a situation where there are unlimited wants have fully exceeded all of the limited resources.
How do changing prices affect supply and demand quizlet?
How do changing prices affect supply and demand? As price increases, both supply and demand increase . As price decreases, both supply and demand decrease. As price increases, supply decreases, but demand increases.
What are the 5 reasons for income inequality?
- Technology has altered the nature of work. ...
- Globalization. ...
- The rise of superstars. ...
- The decline of organized labor. ...
- Changing, and breaking, the rules.
What is upper middle class income 2020?
| Income group Income | Lower-middle class $32,048 – $53,413 | Middle class $53,413 – $106,827 | Upper-middle class $106,827 – $373,894 | Rich $373,894 and up |
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How big is the wealth gap?
| Stock owned by richest 10%. | 2016 84% | 2013 81% | 2001 71% |
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What is one possible effect on high unemployment in a mixed market economy?
What is one possible effect of high unemployment in a mixed market economy? A lack of income will weaken the buying power for many people .
Who decides how resources will be used?
In a command economy, resources and businesses are owned by the government . The government decides what goods and services will be produced and what prices will be charged for them. The government decides what methods of production will be used and how much workers will be paid.
What percentage of wealth belonged to the wealthiest 1 percent of US citizens in 2010?
Analyzing the US income breakdown for 2010, we can infer that the top 1% of the richest hold approximately 35% of total wealth, while the poorest 80% concentrate approximately 10% of total income.
What does the top 3 percent make?
| Data Top third Top 3% | Household income | Lower threshold (annual gross income) $65,000 $200,000 | Exact percentage of households 34.72% 2.67% | Personal income (age 25+) |
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Why are the rich getting richer?
The data shows that the rich really do get richer, and it’s in large part because they get higher returns on their investments . ... If someone who’s in the poorest 25% of the spectrum would have invested $1 in 2004, they would have, on average, $1.5 by 2015. That’s a return of 50%, and it’s not bad for 11 years.
Who is the top 1%?
In order to be in the top 1% of household wealth in the U.S., you’d need to be worth at least $10,374,030.10, according to Forbes. To be in the top 1% globally, you’d need a minimum of around $936,430 , according to the 2019 Global Wealth Report from Credit Suisse.
