3. Why do many economists think that some economic inequality can be a good thing?EV4. What did the Occupy protestors do to draw attention to the issue of economic inequality? How Should the US Reduce Economic Inequality?The rich are getting richer. And the superrich are getting super richer. We know some ofthe names: Warren Buffett, Bill Gates, MarkZuckerburg, the Walton family (of Wal-Mart).This billionaire club is growing fast. In 2007,there were 946 billionaires in the world. By2016, that number doubled to 1,810. Of these,540 were Americans. A 2015 OxFam reportwarned that the combined wealth of the world'sthe widening gap is benefitting the top 1 percent.The top 0.1 percent is doing even better. As justone example, CEOS have seen the real value oftheir salaries increase more than 1,000 percentsince the 1950s. Meanwhile, the average workerhas seen the real value of his or her incomedecrease over the last three decades.EVrichest 1 percent would soon surpass the com-bined wealth of the other 99 percent of peopleon the planet.Wealth inequality isan increasingly seriousproblem in the UnitedStates, a nation knownas the land of opportu-nity and the home of astrong middle class. Thewealthiest 1 percent inThe gap between rich and poor is widening,and people are noticing. In 2011, a group ofprotestors drew extensive media coverage whenthey set up camp in Zuccotti Park in New YorkCity's financial district. Thisinitiated the Occupy WallStreet movement, whichdrew attention to economicAREinequality. The OccupyMovement spread across theUS and around the world,using the slogan "We are the99%" to highlight the gapTHE99the US owns more thanbetween the wealthiest 140 percent of the na-tion's wealth. Thepercent and everyone else.Although people differon what should be done,most agree that economicinequality is a problem. Arecent Pew Research pollfound that 65 percent of Americans feel thatinequality is increasing and the vast majoritysaid the widening gap is a bad thing. In therun-up to the 2016 presidential election, bothRepublican and Democratic candidates dis-cussed inequality. When Republicans andDemocrats agree that something is a problem, itSO ARE YOUOCCUPV!40poorestless than 1 percent ofpercent ownAn Occupy Wall Street protest inNew York City, October 4, 2011the wealth.Economiststhatagreefree-market economies will always have somedegree of economic inequality. This could beincome inequality, which relates to differencesin annual earnings. Or it could be wealth in-equality, which refers to the total worth ofindividuals (land, businesses, stocks, and bonds),not just what they earn in one year.Many economists feel that inequality is notnecessarily a bad thing. It can provide theincentive for people to work hard or to riskstarting their own business. This chance forupward mobility spurs innovation and growth.However, when those opportunities are not there,economies can stagnate and people can suffer.Too much economic inequality is a badthing. But how much is too much? The currentlevels of economic inequality have not beenseen since the late 1920s, when the nation wasis time to take notice.There are a variety of ways to addresseconomic inequality. The following eightdocuments explore two of these ways: raisingthe minimum wage and increasing taxes on thewealthy. Your task is to examine the documentsand answer the question: How should the USreduce economic inequality?on the verge of the Great Depression. Most of181© 2017 The DBQ ProjectTeachers may photocopy this page for their own classrooms.Digital reproduction and posting outside of DBQ Online is prohibited.

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3. Why do many economists think that some economic inequality can be a good thing?

ENGR.ECONOMIC ANALYSIS

14th Edition

ISBN:9780190931919

Author:NEWNAN

Publisher:NEWNAN

Chapter1: Making Economics Decisions

Section: Chapter Questions

Problem 1QTC

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