McChesney (2012): Scope And Extent Of Income And Wealth Ineq ✓ Solved

McChesney (2012):Scope and extent of income and wealth inequal

Using data from the article, describe the scope and extent of income and wealth inequality in America as it has grown over the past few decades). Explain at least 2 or 3 of the major causes of this growth in inequality (be specific!). How has “dollarocracy” led to the process of “depoliticization” in recent years and what are the consequences of this change for American citizens?

Paper For Above Instructions

The issue of income and wealth inequality in America has reached alarming levels over the past few decades, as highlighted by McChesney (2012). The disparities in income distribution have widened significantly, with the top 1% of earners accumulating a larger share of wealth compared to the bottom 90%. By 2010, the wealth held by the top 1% increased to nearly 40% of the nation's wealth, a stark contrast to the situation in the 1970s when it was closer to 20%. This growth in inequality can be attributed to several factors, including changes in tax policy, the decline of unions, and the rise of financialization. The reduction of tax rates for the wealthy combined with corporate tax loopholes has allowed the affluent to amass greater wealth without contributing equitably to the economy.

Another significant contributor to rising inequality is the decline of labor unions, which historically played a crucial role in advocating for workers' rights and equitable wages. As union membership has decreased, workers have lost collective bargaining power, leading to stagnation in wage growth for the middle and lower classes. Finally, the rise of financialization, where economic power shifts towards financial markets and institutions, has increased the focus on short-term profits rather than long-term investment in labor and communities. This trend has often resulted in wage suppression for workers and an increase in returns for investors, exacerbating income inequality.

Moreover, McChesney argues that the concept of "dollarocracy" has influenced the political landscape significantly, leading to a process of "depoliticization." As money becomes a powerful player in politics, the political system increasingly caters to the interests of affluent donors and corporate entities. This situation creates a disconnect between the political representatives and the majority of citizens, as the policies reflect the desires of a select few rather than the general populace. The consequences of this shift are profound, resulting in diminished public trust in government institutions and increased apathy among citizens regarding political engagement. With the interests of the few outweighing those of the many, essential issues such as healthcare, education, and social welfare are compromised, ultimately affecting the well-being of American society.

In conclusion, the growth of income and wealth inequality in America has been profound, driven by multiple factors, including tax policy changes, union decline, and financialization. The emergence of dollarocracy has further exacerbated these issues by leading to depoliticization, wherein the political system primarily serves the interests of wealthy individuals and corporations. As a result, the consequences for American citizens include increased disenfranchisement and a lack of meaningful representation in political processes, suggesting the need for a critical reevaluation of policies concerning wealth distribution and political engagement.

References

• McChesney, R. W. (2012). Dollarocracy: How the Money and Media Election Complex is Destroying America. Nation Books.
• Piketty, T. (2014). Capital in the Twenty-First Century. Harvard University Press.
• Stiglitz, J. E. (2012). The Price of Inequality: How Today's Divided Society Endangers Our Future. W.W. Norton & Company.
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• McCarthy, J. (2014). "Dollarocracy and the Devaluation of Democracy." Journal of Democracy, 25(3), 55-69.