Pub Aff 111 Short Essays 3

pdf

School

University of California, Los Angeles *

*We aren’t endorsed by this school

Course

111

Subject

Economics

Date

Jan 9, 2024

Type

pdf

Pages

Uploaded by ChiefLapwingPerson946

Professor R. Jisung Park PA 111 – Microeconomics: Market Failures and Inequality 4 May, 2022 Short Essays Assignment #3 1. Economic mobility is the ability for an individual to change their relative economic standing. In other words, mobility is the likelihood that an individual can become more wealthy or more poor in relation to those around them over a period of time. Economic mobility is distinct from economic inequality because economic inequality is the economic distance between the richest and the poorest and mobility is how easy it is to move up or down along that distance of inequality. 2. Wealth inequality is inequality in the amount of money individuals have which includes generational accumulation and debt, meaning many people have negative wealth if they are in debt; wealth is a stock as compared to a flow. Income inequality is inequality in the money a household makes through work or investments and does not include debt; income is a flow. Consumption inequality is the difference in what is achieved with both wealth and income in a household; this is a different measure because money invested in property or stocks contributes to wealth but is not able to be used for consumption when it is invested. 3. I think while it is easier and more feasible to pay attention to income inequality (and easier to adjust as a result of progressive income taxes), it is ultimately more important to pay attention to wealth inequality. Wealth that accumulates over generations puts individuals in better positions to get an education or a job if they grow up wealthy. Individuals that have generational wealth can also work a low-paying job and still be very well-off and able to afford living expenses, but they wouldn’t pay as much taxes as someone that grew up in a low-income household that now makes a lot of money in their job. Wealth taxes or policies that focus on wealth inequalities would also account for debt, meaning people that are still paying off student loans wouldn’t have to pay as much taxes as people that make a lot of money and didn’t go to school. 4. Over the past 3-5 decades in the United States, income inequality has increased. According to the Pew Research Center, the proportion of people in the upper-income tier in the U.S. rose from 14% to 20% from 1971 to 2019. The proportion of people in the lower-income tier also increased, meaning inequality has increased when there are fewer people in the middle tiers and more in the upper- and lower-income tiers. Additionally, the median middle-class income increased by 49% from 1970 to 2018 while the median upper-class income increased by 64% over the same period (Horowitz et al., 2020). 5. According to the OECD, the ratio of the richest quintile to the poorest quintile in the U.S. is 8.4. In comparison, the same ratio in Australia is 5.6 and the ratio is 14.5 in Costa Rica.

References Horowitz, J. M., Igielnik, R., & Kochhar, R. (2020, January 9). Trends in income and wealth inequality. Pew Research Center’s Social & Demographic Trends Project . https://www.pewresearch.org/social-trends/2020/01/09/trends-in-income-and-wealth-in equality/ Inequality—Income inequality—OECD Data . (n.d.). TheOECD. Retrieved May 4, 2022, from http://data.oecd.org/inequality/income-inequality.htm

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version

Access to all documents
Unlimited textbook solutions
24/7 expert homework help

Related Documents

ECON2001.docx

ECON 2301 Final EXAM (2).docx

Kami Export - Graded Assignment 7.pdf

03-01_task1 (1).docx

ACC543 Wk6 Discussion CH.docx

Pub Aff 111 Problem Set 2.pdf

Pub Aff 60 Homework 4.pdf

Solution PS4 - F2022 Econ 102-2.pdf

Pub Aff 111 Problem Set 1.pdf

Unit 4 Assignment Case Study Analysis.docx

McDonald's 5 Forces.docx

8-1 Discussion and responses.docx

Recommended textbooks for you

MACROECONOMICS FOR TODAY

Economics

ISBN:9781337613057

Author:Tucker

Publisher:CENGAGE L

Principles of Microeconomics

Economics

ISBN:9781305156050

Author:N. Gregory Mankiw

Publisher:Cengage Learning

Principles of Economics (MindTap Course List)

Economics

ISBN:9781305585126

Author:N. Gregory Mankiw

Publisher:Cengage Learning

Principles of Microeconomics (MindTap Course List)

Economics

ISBN:9781305971493

Author:N. Gregory Mankiw

Publisher:Cengage Learning

Principles of Economics, 7th Edition (MindTap Cou...

Economics

ISBN:9781285165875

Author:N. Gregory Mankiw

Publisher:Cengage Learning

Exploring Economics

Economics

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:SAGE Publications, Inc

SEE MORE TEXTBOOKS

Recommended textbooks for you

MACROECONOMICS FOR TODAY
Economics
ISBN:9781337613057
Author:Tucker
Publisher:CENGAGE L
Principles of Microeconomics
Economics
ISBN:9781305156050
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics (MindTap Course List)
Economics
ISBN:9781305585126
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Microeconomics (MindTap Course List)
Economics
ISBN:9781305971493
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Principles of Economics, 7th Edition (MindTap Cou...
Economics
ISBN:9781285165875
Author:N. Gregory Mankiw
Publisher:Cengage Learning
Exploring Economics
Economics
ISBN:9781544336329
Author:Robert L. Sexton
Publisher:SAGE Publications, Inc