Income and Wealth in the United States

Remember when we were discussing the values in Americansociety. Individual success is apervasive theme in these values and in our society. Much of the American society is governed and controlled byeconomic forces. Economics, whichwe will discuss later, has to do with the structures that partake in theprocess of the distribution of goods, services and wealth in a society.

If Economics is such a major aspect of our society, it isnot a surprise that individuals with great roles and wealth within our societyare highly valued.

When we consider inequality in the US we can consider theeconomic inequality. We canexamine a person’s income and aperson’s wealth.

Income is theeconomic gain derived from wages, salaries, income transfers (governmentalaid), or ownership of property.

Wealth includes notonly income but also property such as buildings, land, farms, houses,factories, cars, and other assets.

Our concern when looking at income and wealth in the US isits distribution, or the degree to which the total wealth of a society isshared by all its members.

In the US the trend has been that the wealthy continue to bemore likely to stay wealthy and get more wealthy while the poor tend to staypoor and become more poor. Thistrend is even more pronounced when you take ethnicity, race and gender intoaccount.

Of all the industrialized nations, the US has the greatestdisparity of income (the difference between the highest and the lowest income).

Some of the reasons we tolerate such great differences inincome have a lot to do with the values that are held in America.  The roots of American culture aregrounded in hard work and Puritan ethics of saving and prudent living.  This has fostered a culture that valuesindividual achievement and rewards it handsomely while at the same time holdingindividuals accountable for their own failings.

If you consider this difference you will see a differentvalue placed on ascribed status and on achievedstatus. We make heroes out of those that make it rich on their own,and downplay those who win lotteries or inherit money.

On the other hand, we also view and judge poverty in thesame way…if we see it as a result of some ascribed status (disability) we maybe OK with it, however, if we see poverty as a result of achieved status(alcoholism…in most people’s view) then we do not value them.