The Rich are Getting Richer and While the Poor Stagnates

On my previous article, I talked about how President Obama wanted to implement the expiration of tax cuts for the wealthy. The tax cut shall only remain to individuals or couples who at earn at most $250,000 a year. All else in the society will be subjected to full tax payments especially business owners. Republicans argue that the term what the Pres. Obama has called the “wealthy” are in fact small business owners. These owners are the ones who give numerous jobs to people and giving them the burden of tax will only hinder recovery and result in more unemployed citizens.

Donna Brazile, a known democratic strategist, argues that extending tax cuts to low-earning families would be very beneficial and may produce favorable results to the economy in the long run. She also emphasized that for the last couple of years, the distribution of wealth hasn’t really been balanced at all. The top 1 percent of the population gained a significant increase in their income and wealth while the bottom half hasn’t got any increase at all. In simple terms, the wealthiest benefited and gained more income while the poorer ones remained poor.

She further emphasized the inequalities in income which is a result of poorly decided and irrational government bills. The richer people received lesser taxes which enabled them to get larger incomes. The low to mid income people, on the other hand, never really got any boost on their earnings. Figures showed that the income of the top 1 Americans nearly quadrupled for the last 3 decades as opposed to the lower and middle class Americans barely gaining at all.

It is intriguing to know that the top 1 percent of earners actually got a 74.6 percent jump for the last decade. This is significantly huge compared to the lower groups who only managed to receive not more than 20 percent in increase. To put things into perspective, the rich Americans get more and earn more while those who are near and below the middle-class group haven’t gotten any improvement in their earnings at all.

The recession of today is clearly a result of the wrong decisions being done by the government in imposing tax cuts. A capitalist system is very much prevailing and where rich capitalists are taking control of most of the wealth of the nation. We can clearly see what happens when financers and creditors of today hold or freeze their funds. Consumer spending will be greatly reduced and the economy will be put on a stand still. It is up to Pres. Obama and his administration to find ways in ensuring the equal distribution of wealth among its citizens. We should avoid a capitalist system as only a handful can benefit from it.