Free Distribution of Wealth and Power Essay Sample
Every country strives daily to ensure that the national cake is equally divided among its citizen. However, in most countries including the U.S wealth is still concentrated in the hands of the rich with the problems of unemployment, hunger and illiteracy still prevailing. The gap between the rich and the poor increases as evidenced with the continuous wealth disparity between the White households and the African- American households. Wealth is defined as the net worth of a person that may be available for consumption or investment in the economy while power is the ability to influence others towards your opinion. Wealth is a resource used to exercise power and shape the social setting for the benefit of the wealthy. Moreover, wealth provides financial security, boosts social status and strengthens power of an individual or a nation. Therefore, stringent measures should be put in place such increasing tax rates on high income earners in order to curb the inequalities existing. Nevertheless, inequality may remain a challenge because the rich tend to manipulate the regulations to amass a lot of wealth while others are not aware of the inequalities existing.
The move by the ultra-conservatives to remove inheritance taxes would increase the inequality problem. This is because the government revenues will decline and this will paralyze its efforts toward funding the projects that can promote equal distribution of resources. However, some rich people especially the Republican financial donors are aiming at derailing these efforts by supporting the initiatives of the ultra-conservatives. It is worth noting that wealth is viewed in terms of investments, stock markets and real estate business. Therefore, when the government uses tax policy to encourage equality, many investors will be affected. As a matter of fact, inequalities may continue when the investors withdraw from the economy because of high taxes levied. Instead, they may opt to enjoy the wealth they have accumulated as the poor families suffer due to lack of resources of creating wealth. Resources that are needed for the creation of wealth are held by the rich. The government should set policies that favor the investors so as to solve the inequality of wealth distribution.
Even though the current criteria of fixed taxation for a given group of income bracket apply quite well, there are various individuals within this group that are highly advantaged and others disadvantaged. Although it may be resumed that income taxation is sparingly spread so as to cover fairly all the income earners, it remains true that the highly paid individuals get more favor than the lowly paid in the same bracket. In order to meet fairness in terms of income distribution in America, the current strategies should be revised.
In terms of wealth distribution, it is not how much a person earns that dictates how wealthy he is. This argument is based on the fact that most employed people in America may only rely on their job income for only 10% of their total income. It would not be a fair measure of income distribution to impose taxation solely on the income. Additionally, wealth is only but a measure of how much liquid assets an individual owns. It therefore means that personal assets meant for personal comfort and pleasure cannot be classified as wealth. This mode of assessment has facilitated much of status retention. Through this economic philosophy, wealth has continuously remained in the hands of the few. Wealth distribution strategy should also be revised thoroughly so as to strike a balance in the States citizens.
Solving the prevalent wealth inequality in the U.S may reduce the poverty level among the blacks. The African Americans have not been able to inherit wealth and have suffered violent incidents such as unpaid labor and unequal education as well as employment opportunities. Therefore, when the state intervenes by initiating transfer payments, the poor blacks will be able to accumulate wealth. Programs such as, social security schemes to the aged, welfare to the needy families and food stamps will reduce income inequality among the low income earners. Consequently, to reduce the inequalities in the distribution of wealth the government ought to regulate tax and transfer payment policies.
Availability of wealth accumulation results to source of power among the wealthy. This implies that when wealth is distributed equitably there will be no impact of power. As a result, the richest families are against the policy of progressive tax that drains a lot of money from them to the government. Furthermore, the employers and the employees will find it hard to cope with these conditions. There will be little to save for investment reducing the creation of wealth in an economy thereby increasing the vicious circle of poverty.
Despite the effects of power on the poor citizens, the rich becomes comfortable when they exploit the low income people in a nation. They use their status and abuse power by even acquiring other resources. The wealthy prefer competition among themselves as they devise ways of amassing wealth while the poor are denied access to the resources. They take possession of corporations by controlling the stock market in the economy. They also fund most projects through donations and this gives them authority of the economy. Thanks to the federal government for assisting in the redistribution of resources. Intensive progressive income tax leads to increased uniform distribution of wealth. Programs such as, land reforms also promotes equality. The government also has embraced the subsidy programs to redistribute wealth to its citizens.