Question

In about a page discuss about "Wealth inequality in America " and the impact in the society and economy.

Answer 1

Wealth is defined as the cur rent market value of all the assets owned by households, net of all their debts. We live in unequal times. The causes and consequences of widening disparities in income and wealth have become a defining debate of our age. With the takeoff in income inequality by now well-known, attention has shifted of late to trends in wealth inequality. Until recently, it had been difficult to gather empirical evidence on wealth inequality. However, important new evidence on wealth inequality has now become available, evidence that suggests that wealth concentration is rising fast in the U.S. and has reached levels last seen only during the Gilded Age.Studies have made major inroads into documenting trends in either income or wealth inequality in the United States. The backbone explains of this is a newly compiled that builds on household-level information and spans the entire U.S. population over seven decades of postwar American history.

The level of wealth inequality in the U.S. is quite exceptional. If one compares the U.S. to Scandinavian countries, where the data are of high quality, it is clear that wealth inequality is much more extreme in the U.S.

Wealth inequality in America leads to higher rates of health and social problems, and lower rates of social goods, a lower level of economic utility in society from resources devoted on high-end consumption, and even a lower level of economic growth.

There is strong relationship between high levels of income inequality and levels of social problems. Children of highly paid people are more likely to be highly paid and children of low paid people more likely to be low earners. Countries with higher levels of income inequality have of social problems. Wealth and income inequality leads to many problems ie. Inequality increases property crime and violent crime. Living in an unequal society causes stress and status anxiety, which may damage your health. In more equal societies people live longer, are less likely to be mentally ill or obese and there are lower rates of infant mortality, Inequality also affects how you see those around you and your level of happiness. People in less equal societies are less likely to trust each other, less likely to engage in social or civic participation, and less likely to say they're happy.

Increased inequality can lead to financial crises High levels of income inequality are associated with economic instability and crises, whereas more equal societies tend to have longer periods of sustained growth.High levels of income inequality lead to higher levels of personal and institutional debt. There is evidence to suggest that increased inequality was at least partially responsible for the increase in debt , the US financial crisis.Increased inequality may increase rates of inflation. Inequality in wealth also leads to slow growth of American economy ..economic growth is lower and periods of growth are shorter in countries that have high inequality. Overal unequal distribution of wealth leads to many such problems which can slower down the working of economy of a country. Ie. America (U.S.).