Question

Do you think the current distribution of income in the United States is too unequal? Why or why not? What in your opinion should be done to promote fairness?

Answer 1

I think the current income distribution in the United States is too unequal. The US falls in the 30th percentile of all countries in income inequality. In 2013, the top 1% households in the USA received around 20% of the pre-tax income in the US. In 2015, the average income of the top 0.1% households was $6,747,439 whereas the average income of the bottom 90% households was $34,074. Therefore, clearly, the current distribution of income in the United States is too unequal.

I think the government needs to be more proactive in reducing inequality. It needs to engage businesses in order to create more equality. The following steps can be taken:

• The government can create more jobs to become the employer of the last resort when the private market cannot create enough jobs
• Apply fiscal and the monetary policy wisely in order to achieve higher employment and stable economic growth
• Conduct various skill development programs in order to build more human capital and train unskilled workers
• Implement various safety net programs like Medicaid programs
• The government can increase tax revenues and support various social programs in order to alleviate poverty