The Income Divide Between The Super Wealthy And Everyone Els

The Income Divide Between The Super Wealthy 1 And Everyone Else Has B

The income divide between the super wealthy 1% and everyone else has become a topic of great debate during 2015. Take a moment and go back in time to 1979 to the Phil Donahue Show (kind of the Oprah of his day) and his interview of Milton Friedman a Nobel Prize winning economist and one of the strongest proponents of the Free-Market System. It appears that not much has changed since 1979 with the exception that the income gap has gotten even more pronounced. Watch this summary of Robert Reich's points from his movie: Inequality for All. The two basic types of economic systems are free-market systems, in which individuals and companies are largely free to make economic decisions, and planned systems, in which government administrators make all major decisions.

The terms capitalism and private enterprise are often used to describe free-market systems. Communism is the most extreme type of planned system; socialism lies somewhere between capitalism and communism and generally refers to government ownership of fundamental services. The U.S. economy, like virtually all other economies, blends elements of free-market capitalism and some government control.

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Understanding the economic systems that govern societies is essential to comprehending the broader social and political implications of wealth distribution and government policies. The debate surrounding capitalism and socialism often evokes strong emotional reactions, shaped by personal values, experiences, and perceptions of fairness and effectiveness. Exploring these reactions requires a nuanced understanding of both economic philosophies and their practical applications.

My emotional reaction to the terms capitalism and socialism is complex. Capitalism, with its emphasis on free markets, individual enterprise, and private ownership, often evokes feelings of admiration and hope for opportunity and innovation. I associate capitalism with economic freedom, personal choice, and the potential for upward mobility. However, it also provokes concern about inequality, exploitation, and social injustices that can stem from unregulated markets. Conversely, socialism tends to evoke feelings of security and fairness, as it emphasizes collective welfare, equality, and government intervention to provide basic services. Yet, I also feel skepticism about the potential for inefficiency, government overreach, and stifling of individual initiative associated with socialist policies.

Personally, my stance on taxation stems from a belief that a balanced approach is necessary to promote social stability and economic growth. If I had to choose, I might favor a system with relatively higher taxes similar to those in European countries like Germany, France, and Italy, where citizens benefit from comprehensive healthcare, education, and social safety nets. I value the idea of a society where fundamental services such as healthcare and education are accessible to all regardless of income, which can lead to a healthier, more educated workforce and greater social cohesion.

Paying higher taxes in such a system provides the assurance that essential health and educational services are universally available, reducing disparities and fostering social mobility. In contrast, a lower-tax system with personal responsibility for health and education may promote individual initiative but could also exacerbate inequality and leave vulnerable populations without necessary support. My preference leans toward a model that ensures basic needs are met through government programs because I believe that a healthy, educated populace benefits society as a whole, promoting stability and shared prosperity.

Nevertheless, it's crucial to recognize the importance of fiscal responsibility and efficiency in providing these services. Effective management of government programs is necessary to prevent waste and ensure that resources are targeted where they are most needed. The debate over taxation and government provision of services is complex, involving economic, ethical, and practical considerations. Ultimately, finding a balance that promotes economic growth while ensuring social equity remains a central challenge for policymakers.

References

• Krugman, P., & Wells, R. (2018). Economics (4th ed.). Worth Publishers.
• Reich, R. (2010). Inequality for All: The Roots of Economic Disparity. Documentary film.
• Friedman, M. (1962). Capitalism and Freedom. University of Chicago Press.
• Sen, A. (1999). Development as Freedom. Alfred A. Knopf.
• Stiglitz, J. (2012). The Price of Inequality: How Today's Divided Society Endangers Our Future. W. W. Norton & Company.
• OECD. (2019). Taxing Wages. OECD Publishing.
• Harvey, D. (2010). The Enigma of Capital and the Crises of Capitalism. Oxford University Press.
• Marx, K. (1867). Capital: A Critique of Political Economy. Charles H. Kerr & Company.
• OECD. (2020). Society at a Glance 2020: OECD Indicators. OECD Publishing.
• Atkinson, A. B. (2015). Inequality: What Can Be Done? Harvard University Press.