Question

Should we make economic/financial policy changes to change the level of wealth inequality in the US?

Answer 1

Wealth is the sum of the value of all assets. Data on wealth are collected once every three years in the survey of CONSUMER FINANCE in US. Most workers receive low earningsin their first jobs, higher earnings as they reach middle age and after retirement they get again low earnings. Thus, it creates income inequality among the people of society.

In the US, the wealth distribution is more unequal than the income distribution. Following changes in economic policy to change the level of wealth inequality in the US.

1. Redistribution:- It means taking income from rich people and providing it to the poor people. The progressive tax system, effective tax are some of the tools to decrease the wealth inequality.

2. Public Policy:- Public policy can make a ladder of opportunities, to decrease the wealth inequality.

For Children, improved day care, enrichment programs for preschoolers, improved public schools, after school and community activities and internships and apprenticeships.

For College level students, widespread loans and grants, public support for a range of institutions from two-year community colleges.

For Adults, opportunities for retraining and acquiring new skills, prohibiting discrimination in job markets and housing on the basis of race, gender, age and disability.

3. The US does have an estate tax, a tax which is imposed on the value of an inheritance which suggests a willingness to limit how much wealth can be passed on.

4. Use of incentives and income equality in economic policy.