The coming debt-ceiling debate and other developments in Washington “are unlikely to do much to alter one major factor contributing to income inequality: stagnant wages.” Wages have fallen to a record low as a share of America’s gross domestic product, yet corporate profits have “fattened.” In other words, the economic pie is growing fatter by the second, but the vast majority of us aren’t getting a bigger piece.
Our Economic Pickle - New York Times
But is income inequality really that big of a deal? YES! While a tiny percent of Americans grow richer and richer, the purchasing power of the middle and working class has come to a halt. Why should the rich care? Eventually, our inability to purchase goods will hurt the very corporations who are hoarding record profits. Our income inequality is so bad that we are on par with China (where half the population lives as rural peasants who don’t enjoy even the simplest modern technologies) and to many countries in Africa that suffer under dictatorships.
One disturbing trend of income inequality is that higher-income and lower-income people are interacting with each other less and less. This not only contributes to inequality in education and other essential public services, but also fosters a lack of understanding between classes that will hinder progress on solving Americans problems.