Karl Marx Income Inequality Analysis

In the United States, high standard of living is not equally shared with in the Americans. The 1970s and 1990s was period where economic inequality began to grow. Emmanuel Saez, an economics professor at UC Berkeley has been doing a research for the U.S. income inequality. He states that there has been an increase since the 1970s, and has reached levels that have not been seen since 1928. “In 1928, the top 1% of families received 23.9% of all pretax income, while the bottom 90% received 50.7%. But the Depression and World War II dramatically reshaped the nation’s income distribution, by 1944 the top 1%’s share was down to 11.3%, while the bottom 90% were receiving 67.5%, levels that would remain more or less constant for the next three decades. But starting in the mid- to late 1970s, the uppermost percent income share began rising dramatically, while that of the bottom 90% started to fall.”(DeSilver) Ever since then, economic inequality continues to increase, especially in the last three decades.

In other words, America has a widening gap between its wealthy and poor. As the rich get richer and the poor get poorer, there is a problem emerging: the disappearance of the middle class. Low-wage workers continue to fall behind those who make higher wages, and this only widens the gap between the two. There has been an economic boom in the United States, which has made the country more prosperous than it has ever been. That prosperity does not reach all people; it seems to only favor the rich. Rising economic segregation has taken away many opportunities for the poor to rise in America today. The poor may find that the economic boom has increased their income; however, as their income increase so does the prices they must for their living expenses (Dreier, Mollenkopf, & Swanstrom 19).

In today’s capitalist economy, where economic transactions and business in general is centered on self-interest, there is a natural tendency for some people to make more than others. That is the basis for the “American Dream,” where people, if they worked hard, could make money proportional to their effort. However, what happens when this natural occurrence grows disproportional in its allocation of wealth within a society? The resulting issue becomes income inequality. Where a small portion of the population, own the majority of the wealth and the majority of the population own only a fraction of what the rich own. This prominent issue has always been the subject of social tension

Wealth inequality in the United States has grown tremendously since 1970. The United States continuously reveals higher rates of inequality as a result of perpetual support for free market capitalism. The high rates of wealth inequality cause the growing financial crisis to persist, lower socio-economic mobility, increase national poverty, and have adverse effects on health and well being.

In “inequality for all”, a documentary presented and narrated by Robert Reich, Reich discusses what is happening in terms of the distribution of income and wealth in the US, why it is happening, and is it a problem. “Inequality for all” is directed by Jacob Kornbluth, it premiered in 2013, and it runs for 90 minutes. Reich studied at the University of Oxford in during the late 1960’s, where he befriended future president Bill Clinton. Subsequently, they kept in touch, and in 1993, when Clinton was elected president, he reached out to Reich, to be secretary of labor. Reich was in office for the following four years, and today he is a professor at the University of California, Berkeley. For about three decades now, Reich announced that out of all developed countries, the US has the most unequal distribution of wealth, and that inequality is getting even greater in the US. In the documentary, the most compelling topics covered by Reich, are the changes that started happening in the late 1970’s, the fact that 42 percent of Americans born into poverty stay poor, and that nowadays, money controls politics.

In Robert Reich documentary “Inequality for All” he makes a compelling discussion about the serious crises that the United States faces due the widening economic gap. He looks to raise awareness of the U.S. economic gap between the rich and poor. According to Reich the widening divide in America is real and growing. Income levels at the middle and labor class is stagnant and are at it’s lowest levels compared to upper class incomes since the beginning of WWII and is growing wider each year. Reich suggests that the economy runs more smoothly when the middle class has jobs with fair wages, when unions are strong, and when middle class workers have some extra money to spend if possible when the government uses the tax policy properly and when it raises the minimum wage regularly to control the income gap between labor and management. In other words Reich argues that economically healthy middle and labor class equality is the foundation of a thriving economy and is necessary to maintaining a sound national infrastructure and educational system within

The highest earning fifth of U.S. families earned 59.1% of all income, while the richest earned 88.9% of all wealth. A big gap between the rich and poor is often associated with low social mobility, which contradicts the American ideal of equal opportunity. Levels of income inequality are higher than they have been in almost a century, the top one percent has a share of the national income of over 20 percent (Wilhelm). There are a variety of factors that influence income inequality, a few of which will be discussed in this paper. Rising income inequality is caused by differences in life expectancy, rapidly increases in the incomes of the top 5 percent, social trends, and shifts in the global economy.

Social inequality exists in the United States through the Elite’s power to maintain their dominance in the United States capitalist system. The Elite Ruling class is made of the upper class and this class of individuals share similar ideology and are the members of the United State’s Superstructure. The Elite Ruling Class members of society are the decision and policy makers in the United States. Research and history has proven that many policies and decisions made by the Elite Ruling Class serve their own interest and promote their ideas. These decisions are the source of the inequality in the United States and it contributes to their ability to maintain their dominant status. The inequality is trickled down to the other classes through social policy and social institutions that affect our lives everyday citizens. A major example of this social inequality can be seen in the United States housing market or home ownership. A significant amount of studies, statics and data supports the evidence of social inequality within the US housing market or home ownership. The following passages will discuss social inequality in the United States as it is connected to Karl Marx’s theory of capitalism’s power and influence of the Elite Dominant i.e. the Ruling Class view as it relates to homeownership within the United States. Karl Marx’s theory however focuses mostly on economic s and the difference between upper and lower class not race. It is also important to point out that the Elite

This “middle-class nation” is struggling to support all those who live in its borders and the misconceptions about wealth are vastly overrated. Furthermore, the idea of wealth and stability is incorrect, and there is a very sharp contrast between the rich and poor in the country. As the richest twenty percent of American hold ninety percent of the total household of the total household wealth in the country, those at the bottom have managed very poorly and suffer to get through the days.

Capitalism has been the central force behind the growth of the United States’ progressive economy. Within such advanced economic system the chances of economic disparity are significantly high. In fact, over the past three decades there has being a steady increase in unequal wealth distribution among the economic classes. To sustain the current unequal wealth distribution among the classes of the American population, there are numerous factors that influence and shape this trend. For some members of the population it is alarmingly disturbing to know that recent statistics have shown that, “In the US [alone] the wealthiest 1% of its population owns more than the bottom 95 %” (Gutman). As for the difference in economic wealth, it resulted

America is one of the world’s largest and prosperous developed countries in the world, but take a closer look and you realize that the great United States of America has an alarmingly large amount of poverty. Where there once used to be an “American Dream” there now lies the cold hard truth, there is less and less opportunity every day and growing inequality every second. Joseph E. Stiglitz how America has turned into a country that would be unrecognizable to any of the founding fathers. In The Price of InequalityStiglitz visits this problem and searches for the source of the economic inequality that the United States is faced with today. Stiglitz came to the conclusion that America is declining and turning into a society like the one

In the United States, income inequality is drawing more and more attention from the media, sociologists, politicians, and everyday citizens like us since the economic difference during the past decades became more pronounced than before. Karl Marx and Max Weber both discussed their ideas of social inequality and addressed the relationship between inequality and social structure as an important theme in their work. This paper compares and contrasts the approaches of Marx and Weber to the issue of inequality in American society. The discussion includes their arguments concerning how stratification in society influences income inequality and distinguishes their predictions about its trends.

This paper will be discussing “Some Principles of Stratification” by Kingsley Davis and Wilbert E. Moore, “Classes in Capitalism and Pre- Capitalism” by Karl Marx, and “Who Rules America?” by G. William Domhoff. Davis and Moore examine stratification, social class, and positional rank and their effects on individuals and society. Marx examines inequality in society, the relationship between the oppressor and the oppressed or the bourgeoisie and the proletariat, and methods of production and their effects on society. Domhoff examines the roles of corporate communities and the upper class and how they impact America.

In this paper I will discuss “Some Principles of Stratification” by Kingsley Davis and Wilbert E. Moore. Their work focuses on stratification, social class, positional rank, and their effects on individuals and society. The second work “Classes in Capitalism and Pre-Capitalism” by Karl Marx, highlights inequality in society regarding the relationship between the oppressor and the oppressed or the bourgeoisie and the proletariat, and methods of production and their effects on society. Finally, in “Who Rules America?” G. William Domhoff, examines the roles of corporate communities and the upper class and how they impact issues in America.

“A specter is haunting Europe-the specter of Communism”. These words by Karl Marx resonate not only in Europe, but also in the world today. The specter is that of inequality and the importance of human relationship. Richard Wilkinson, a professor of Social Epidemiology at University of Nottingham, speaks about how economic inequality harms society. He said in the beginning of his speech, “I think the intuition that inequality is divisive and socially corrosive has been around since before French revolution”. There have been a lot of people who fought for equality in American history. Still, not all individuals have it and some are still fighting for it, especially in the working industry. Inequality has been a threat to the importance of human relation. Americans should eliminate the prejudices of being too narrow-minded about the blue collar workers because this will lead to social conflict in our society.