The Student News Site of Neshaminy High School

The Playwickian

The Student News Site of Neshaminy High School

The Playwickian

The Student News Site of Neshaminy High School

The Playwickian

Closer look at U.S. wealth gap

By Monica Dinh
Entertainment Editor

According to Oxfam, an international confederation of 17 organizations finding solutions to poverty around the world, the rich have made significant gains on the wealth spectrum – it turns out that the rich really are getting richer.

A recent Oxfam report noted that by next year, the richest one percent in the world will accumulate as much wealth as the other 99 percent of the world.
In a report released on Jan. 19, Oxfam stated, “The richest one percent have seen their share of global wealth increase from 44 percent in 2009 to 48 percent in 2015.” At such a rate, by next year the wealthiest will own more than 50 percent.

Questions arise pertaining as to whose fault caused the wealth gap, which leads to questions of who should pick up the pieces and fix it?

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Oxfam’s executive director said, “It’s time our leaders took on the powerful vested interests that stand in the way of a fairer and more prosperous world.”
Recently, at the State of the Union speech on Jan. 20, Obama boasted about the health of the economy declaring that America had indeed recovered after one of the country’s worst recessions back in 2008.

“Will we accept an economy where only a few of us do spectacularly well? Or will we commit ourselves to an economy that generates rising income and chances for everyone who makes the effort,” Obama said.

While on the topic, Obama also shared plans to close tax loopholes on large inheritances and raise capital gains taxes on the richest percentage of earners.
Taxing the rich may seem like an appealing idea to most Americans, but in reality evidence from the Congressional Research Service shows that tax cuts can hinder economic growth and increase economic inequality.

The spread of income inequality and wealth inequality are directly connected. The rich are able to actually save money while also living a stable financial life. In opposition, those in middle-class and lower class categories either make just enough money or not enough so they are always burdened by debt.

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Closer look at U.S. wealth gap