Question

What are 6 results of the growing income inequality in America.

Answer 1

• Results of growing income inequality in America:-

1. Malallocation of resources:-

Due to income inequality the wealth gets accumulated within the
hands of few higher income groups who further spend less. The purchasing power of those groups additional affects the demands of the community.

2. income mobility:-

The income quality is further hampered since the wealth gets concentrated within the hands of a number of wealthy individuals. The speculate the market higher than the ordinary individuals.

3. discontentment and unrest:-

inequality leads to increase in discontentment and unrest since
the society gets divided into 2. The wealthy and also the poor. The rich further exploits the poor.

4. Borrowing of money:

the center and also the lower income group borrow extra money for his or her survival that additional causes money crisis.

5. Social injustice:

inequality further will increase the ability of the few and people at the highest relish all the worldly comforts and also the rest get exploited.

6.Wastage of resources:-

The wealthy whose population is a smaller amount holds the utmost resources and the poor who are additional in cOunt have restricted resources. because of such uneven distribution it leads to below utilization of resources that additional will increase the wastages.