The conversation of income equality is a tough one to have because, we know that there is a problem with the distribution of wealth, but there is no clear way to decide how wealth should be distributed without there being opposition from those who are wealthy. Throughout the reading I noticed arguments that the wealth gap has stayed the same throughout the years, when considering the advancements, and modernization that differed between the poor in the 1920s and the poor now, such as access to indoor plumbing, or a refrigerator. I feel that the argument differs from what every other economist and historian argues because they state that as the world advanced, and capitalism became more prevalent, the wealth gap has increased dramatically. I wonder if the wealth gap is really larger now, or if it is the same based off of the new factors.

The question that has been ongoing is how do we make the wealth gap shorter. The wealth gap became so vast in the fist place due to the 1970s Reaganomics. The tax cuts that were created ended up benefiting the wealthy and business owners, while the working class got stuck with the higher taxes. The policy that President Obama developed taxed the wealthy 39.6% of their income, yet with so many loopholes attached to it, it makes it easier for businesses  to count some incomes as capital gains, meaning they are not getting taxed. Although, there is a policy in place that’s wants to tax the wealthy, it does not help to shorten the wealth gap because there are other situations such as offshore accounts. With offshore accounts, big businesses can keep their money tax free and unregulated, meaning the money that they are making is not going back to the economy.

Another question that I have about the increased taxes for the wealthy is will the money go back to improving the welfare system, and give benefits to those who are in the lower class, or will it go to other programs and government policies. What I also want to know is how will we improve the welfare system so that we can help people get off off their feet, and get out of the lower class? My other question is how are we going to help elevate the middle class. Some people and families who are in the middle class are barely surviving because of income, rent, and other monetary factors. We need a plan that is also going to help them, and make them feel less economically burdened. I think that we can create a welfare system like places in Scandinavia, but we have to do it in a way that will fit our population. The only problem is when creating policies that are used to combat the wealth gap,  someone is either going to lose, or the wealthy will try to combat it because it means the government is interfering too much in business practices.