History

Economic inequality has had a long history in the United States. The economic system of capitalism lends itself to inequality because it requires a competition for capital. Those with capital are rewarded and they see their money grow faster than those who have limited funds. The “rich get richer” phrase comes to mind. However, the government has also had a hand in widening the divide. Taxes and public services are meant to balance the natural tendencies of capitalism. The government takes taxes from people to use as support for public programs, and in doing so subtley distributes the wealth. This distribution has been overwhelmingly one sided though, as tax cuts have been skewed to take money from our much needed social services and deliver it directly to the wealthy. Under the current policy of president Bush so much money has been diverted to the personal accounts of the rich that it has pushed our government into deficit. On top of what could almost be considered an effort by the government to create inequality, there is an other group that depends on this inequality to amke a profit. The “high ups” of large corporations have been driving down pay so much that for the first time (in inflation adjusted dollars) people today are facing a lower minimum wage than the generation before them. At the same time CEO’s have seen their salaries increase, as well as blessed themselves with special compensation. History has shown that economic inequality has been created, maybe it can dismantled in the future.