Thursday, December 23, 2010

The Gap Between Rich & Poor is Growing

The gap between the rich and middle class is now the biggest than it has ever been. It says that the gap has grown even though the wealthy's average net worth went down 27%. But at the same time, the average family's net went down 41%. The article blames this gap to the "bursting of the housing bubble." The reason for the big decrease in the average household's wealth is because most of their wealth was in the value of their home, but home values have been dropping.
I think that this is a very scary thought. That as the people's wealth in our country is going down, the bridge between rich and middle class is still growing and is even at its highest right now. This article also sort of gives me second thoughts on how other articles are saying that our economy is going up. Do you think our economy is getting better or not? After seeing this article, I had a lot of different opinions about how well our economy is doing. How will our economy look in the future? Will the gap between rich and middle class get smaller?

2 comments:

Aaron Oppenheim said...

What I cannot believe is that, even though there is clear evidence that the bridge between the rich and poor is increasing, Republicans still continue to push for tax breaks for the rich! Why? That is exactly why the bridge between the rich and the poor is becoming bigger and bigger! We need to shorten this ever expanding bridge by distributing wealth to middle America. By this I do not mean "hey everyone, lets turn to socialism." I am saying that it is irresponsible to cater to the rich while middle Americans are the ones who truly are in need of help. This divide needs to be filled if we ever want Americans to prosper.

Jessia H said...

@Aaron: Although I see your point, remember that the Republicans "continue to push for tax breaks for the rich" because they believe in trickle-down economics - if wealthy business owners thrive, then that wealth will eventually trickle down to the less fortunate. While I agree that this method has clearly not been working well in our country, I'm not sure that doing the opposite - giving money to the less fortunate and hoping that it "trickles up" - would be a sustainable way to lessen the gap.