Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
Related questions
Question
![3. Why do many economists think that some economic inequality can be a good thing?
EV
4. What did the Occupy protestors do to draw attention to the issue of economic inequality?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F93cd8709-6f56-4d89-8f23-8d33c2770b2f%2F88b3e4a1-9306-45ec-aa94-1bf13b415f28%2Fmv9f1z_processed.png&w=3840&q=75)
Transcribed Image Text:3. Why do many economists think that some economic inequality can be a good thing?
EV
4. 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 super
rich are getting super richer. We know some of
the names: Warren Buffett, Bill Gates, Mark
Zuckerburg, the Walton family (of Wal-Mart).
This billionaire club is growing fast. In 2007,
there were 946 billionaires in the world. By
2016, that number doubled to 1,810. Of these,
540 were Americans. A 2015 OxFam report
warned that the combined wealth of the world's
the widening gap is benefitting the top 1 percent.
The top 0.1 percent is doing even better. As just
one example, CEOS have seen the real value of
their salaries increase more than 1,000 percent
since the 1950s. Meanwhile, the average worker
has seen the real value of his or her income
decrease over the last three decades.
EV
richest 1 percent would soon surpass the com-
bined wealth of the other 99 percent of people
on the planet.
Wealth inequality is
an increasingly serious
problem in the United
States, a nation known
as the land of opportu-
nity and the home of a
strong middle class. The
wealthiest 1 percent in
The gap between rich and poor is widening,
and people are noticing. In 2011, a group of
protestors drew extensive media coverage when
they set up camp in Zuccotti Park in New York
City's financial district. This
initiated the Occupy Wall
Street movement, which
drew attention to economic
ARE
inequality. The Occupy
Movement spread across the
US and around the world,
using the slogan "We are the
99%" to highlight the gap
THE
99
the US owns more than
between the wealthiest 1
40 percent of the na-
tion's wealth. The
percent and everyone else.
Although people differ
on what should be done,
most agree that economic
inequality is a problem. A
recent Pew Research poll
found that 65 percent of Americans feel that
inequality is increasing and the vast majority
said the widening gap is a bad thing. In the
run-up to the 2016 presidential election, both
Republican and Democratic candidates dis-
cussed inequality. When Republicans and
Democrats agree that something is a problem, it
SO ARE YOU
OCCUPV!
40
poorest
less than 1 percent of
percent own
An Occupy Wall Street protest in
New York City, October 4, 2011
the wealth.
Economists
that
agree
free-market economies will always have some
degree of economic inequality. This could be
income inequality, which relates to differences
in annual earnings. Or it could be wealth in-
equality, which refers to the total worth of
individuals (land, businesses, stocks, and bonds),
not just what they earn in one year.
Many economists feel that inequality is not
necessarily a bad thing. It can provide the
incentive for people to work hard or to risk
starting their own business. This chance for
upward 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 bad
thing. But how much is too much? The current
levels of economic inequality have not been
seen since the late 1920s, when the nation was
is time to take notice.
There are a variety of ways to address
economic inequality. The following eight
documents explore two of these ways: raising
the minimum wage and increasing taxes on the
wealthy. Your task is to examine the documents
and answer the question: How should the US
reduce economic inequality?
on the verge of the Great Depression. Most of
181
© 2017 The DBQ Project
Teachers may photocopy this page for their own classrooms.
Digital reproduction and posting outside of DBQ Online is prohibited.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F93cd8709-6f56-4d89-8f23-8d33c2770b2f%2F88b3e4a1-9306-45ec-aa94-1bf13b415f28%2Fot0pi9_processed.png&w=3840&q=75)
Transcribed Image Text:How Should the US Reduce Economic Inequality?
The rich are getting richer. And the super
rich are getting super richer. We know some of
the names: Warren Buffett, Bill Gates, Mark
Zuckerburg, the Walton family (of Wal-Mart).
This billionaire club is growing fast. In 2007,
there were 946 billionaires in the world. By
2016, that number doubled to 1,810. Of these,
540 were Americans. A 2015 OxFam report
warned that the combined wealth of the world's
the widening gap is benefitting the top 1 percent.
The top 0.1 percent is doing even better. As just
one example, CEOS have seen the real value of
their salaries increase more than 1,000 percent
since the 1950s. Meanwhile, the average worker
has seen the real value of his or her income
decrease over the last three decades.
EV
richest 1 percent would soon surpass the com-
bined wealth of the other 99 percent of people
on the planet.
Wealth inequality is
an increasingly serious
problem in the United
States, a nation known
as the land of opportu-
nity and the home of a
strong middle class. The
wealthiest 1 percent in
The gap between rich and poor is widening,
and people are noticing. In 2011, a group of
protestors drew extensive media coverage when
they set up camp in Zuccotti Park in New York
City's financial district. This
initiated the Occupy Wall
Street movement, which
drew attention to economic
ARE
inequality. The Occupy
Movement spread across the
US and around the world,
using the slogan "We are the
99%" to highlight the gap
THE
99
the US owns more than
between the wealthiest 1
40 percent of the na-
tion's wealth. The
percent and everyone else.
Although people differ
on what should be done,
most agree that economic
inequality is a problem. A
recent Pew Research poll
found that 65 percent of Americans feel that
inequality is increasing and the vast majority
said the widening gap is a bad thing. In the
run-up to the 2016 presidential election, both
Republican and Democratic candidates dis-
cussed inequality. When Republicans and
Democrats agree that something is a problem, it
SO ARE YOU
OCCUPV!
40
poorest
less than 1 percent of
percent own
An Occupy Wall Street protest in
New York City, October 4, 2011
the wealth.
Economists
that
agree
free-market economies will always have some
degree of economic inequality. This could be
income inequality, which relates to differences
in annual earnings. Or it could be wealth in-
equality, which refers to the total worth of
individuals (land, businesses, stocks, and bonds),
not just what they earn in one year.
Many economists feel that inequality is not
necessarily a bad thing. It can provide the
incentive for people to work hard or to risk
starting their own business. This chance for
upward 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 bad
thing. But how much is too much? The current
levels of economic inequality have not been
seen since the late 1920s, when the nation was
is time to take notice.
There are a variety of ways to address
economic inequality. The following eight
documents explore two of these ways: raising
the minimum wage and increasing taxes on the
wealthy. Your task is to examine the documents
and answer the question: How should the US
reduce economic inequality?
on the verge of the Great Depression. Most of
181
© 2017 The DBQ Project
Teachers may photocopy this page for their own classrooms.
Digital reproduction and posting outside of DBQ Online is prohibited.
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