Question

Which of the following are correct concerning the distribution of wealth, power and opportunity in the U.S. (List the letters of all the correct answers. If none are correct, write “none.”)  

(a)   The rise of big business brought with it a substantial transfer of wealth and power to the big owners and top managers in the new economy. The middle class declined in both numbers and political clout, and inequalities became extreme.   

(b)   The inequalities of early industrial capitalism were dramatically reduced during the period from the 1930s to the 1960s. The share of the economy going to the wealthiest Americans fell sharply, and the share going to the middle class rose strongly. Political power shifted back toward the middle class, and many issues of great importance to them got priority attention.

(c)   The wealthiest Americans began a counter offensive in the 1970s, and over the last forty years, they have succeeded in once again establishing the late nineteenth century distribution of wealth, power and opportunity. The share of the economy going to the wealthiest Americans has risen sharply, while the middle class has declined in size, income, wealth, and political influence. In recent years, it has been the issues of great importance to large corporations and wealthy investors that got priority attention.

Answer 1

Answers

(a),(b),(c) are correct options.

From the beginning of 20th century onwards there has been Inequality in US. This is mainly because of the US tax and labour policies . In the beginning , top 15% of the country's wealth is owned by the top 1% of the rich class . Another study shows that top18% of wealth is owned by rich class of the soceity. Introduction of income tax which did not result in redistribution aggravated the situation. In the pretext of upbringing middle and lower class population in US , the policies only helped top class population in US at that time.

Significantly during great depression, the income inequality came down drastically since the share of income from top class has reduced .But from 1970's onward inequality againnrose. The Gini index a measure of income distribution among population rose above 40 during this time and the inequality has continued over time. Less progressive tax and transfer policies is the reason for inequality during this time

US , unlike other nation's consistently shows income inequality due to relatively less regulated economy, high immigration and low skilled workers