Opinion-editorial on Growing Income Inequality

Opinion-editorial on Growing Income Inequality

The day after tomorrow is expected to bring new hope to life and nourish our enthusiasm and curiosity to carry on the journey of life. However, humanity has stepped forward with the jet speed to make their survival. One can single out a list of reasons behind this running life and increasingly complex living environment. However, my limited understanding urges me to unleash economic consequences of current political decisions, which have trapped the human race in the sand income inequality. There is sufficient evidence to prove the notion that the current government policies are central to the growing income inequality. It is the government and its policies that widen the gap between rich and poor.

Today's America is less likely an independent place, where all Americans can live a liberal life with open access to equivalent opportunities. Today, income inequality has become a social and economic dilemma, which seems to have an infinite end due to less cared government priorities (figure 1). Regardless of the consequences, the government has proposed and enforced economically-based solutions, which are causing damage to the greater part of the society. Nonetheless, current tax and economic policy is the reason of growing income inequality in America.

Figure 1: Income Inequality in the US (Source: Google Image)

Government policy on interest rate movement is a silent endeavor to increase the wealth of the rich. With increased bond prices, the government is attempting to reduce the interest rate so that economic sectors are assisted in regaining their position and growth trend. Proposed decline in the interest rate might attract new businesses; however, it is making the life of an American citizen even worse. Lower interest rate has a negative effect on the net savings of common men. In the view of Dadush (2013), Fed's strategy to stimulate demand via lower interest rate is found to have dubious efficacy. Instead of deciding what is in the best interest of all, Fed's strategy is only focused on maximizing the wealth of rich segment of the population.

Combined effect of lower interest rate and increasing inflation is not less than a tornado for Americans. It is compelling lower and middle class Americans to live from hand to mouth. It would not be wrong to say that the current government policy of lower interest rate is unethical and least in the interest of Americans. It is the lower interest ...