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Was the growing inequality in American wealth and incomes the result of natural economic market forces, or was it encouraged by deliberate political policies, especially the tax cuts and trade policies of the 1980s? Explain your decision

Oct 21st, 2017

Causes of wealth inequality in the US:

"Some primary causes contributing to the creation and persistence of wealth inequality include:

  1. Monetary policy
  2. Financial resources
  3. Money allocation
  4. Higher rate of savings and hence asset accumulation by the wealthy
  5. Higher net rate of return to assets owned by the rich (the wealthy may have special knowledge, and the level of fees and other charges on their savings will be less than those with small investments)
  6. Lower credit costs and credit constraints for the wealthy. Access to credit at lower rates enhances the level of profits and scope of investment opportunities
  7. Inflation
  8. Tax policy
  9. Decline in unionization"

Causes of income inequality in the US:


Hope this helps!

Apr 24th, 2015

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