Make their wallets "Itch"

Image source: AP Press

Income inequality has risen during past three decades. We still hear (and probably more frequently) "the rich are getting richer, the poor are getting poorer" phrase that seems to linger in everyone's mind (even the rich ones).  The question is who is bothered by it and who is still benefiting from it.

The gap between the rich and the poor is certainly not a new topic.  During the Presidential debates, this topic was also discussed as candidates tried to provide their solutions which, presumably, would solve this problem.  Christopher s. Rugaber presents in his article "Why it Matters:Income Inequality" statements that each candidate made:

    President Barack Obama would raise taxes on households earning more than $250,000 a year, plus set a minimum tax rate of 30 percent for those who earn $1 million or more. He also wants to spend more on education as "a gateway to the middle class." Republican Mitt Romney blames Obama's economic policies for failing to create enough jobs so that middle- and lower-income Americans can earn more. He wants to cut taxes more broadly and says that will generate enough growth to raise incomes for all Americans.

Both statements might sound like a valid solution. However, the popular "fact checking" after the debates concluded that neither statement would bring a valid solution. Even though I would agree more with Obama's statement in regards to raising taxes, still there are flaws. The low- and middle-income classes have certainly been "drained" and, surely, "the rich" could spare more to "Uncle Sam," but I doubt that this would narrow the gap. On one hand, it seems logical that an increase in flow of money back to the middle and lower classes would benefit the economy. The change is slow and long and would take more than just a game with taxes. 

I particularly liked  Noah's argument about putting regulations on Wall Street. We have witnessed an example of increased gas prices couple of years ago and, as we know, hurricanes weren't to blame. Given excuses for supply and demand also weren't the reason. Actually, the supply at that time was higher than the demand and prices had to go down instead, but Wall Street played its role, once again, in getting rich richer and the poor poorer. Until the change will actually happen and there would be a narrower gap between the classes, I'd say make their wallets "itch."