Wealth Inequality

By Miro Ehrfeld 

The "wealth gap" has been a controversial and persistent issue in free market societies around the world. For decades, economists and politicians have been debating and implementing a variety of strategies in an attempt to alleviate the seemingly endless growing divide. Naturally, many economists turn to what the census bureau coins "middle class citizens" as potential candidates in facilitating solutions. Such solutions ranged from lowering the cost of sustainable education and levying higher taxes upon the top 1%, all the way to eliminating (or taxing) family trusts. The effects of these revitalization programs, however, have resulted in limited and or unsteady success. The exact numerical trend can be seen in volatility followed by a slight dip in the average household income of middle class citizens between 2005 and 2013 (Census Bureau US Median Household Income).

Despite the assured longterm potential of these projects, recent studies indicate that the problem may have begun to remedy itself. To justify this premise, economists refer to recent birthrate trends in the United States. According to Neil Howe at Forbes, " the birthrate again dropped to a historic low in 2013". The correlation between birthrate, population and the economy lies in employment. With substantially less people entering the workforce each year, employment rates are expected to rise accordingly. Theoretically, this would result in higher wages, diversity in career options and a confident, stable middle class.

In searching for a reference to refute the validity of the correlation, one might turn to new economic developments in China. Due to restrictions on the amount of children one may have, Chinese manufacturing capabilities have plummeted. Both Goldman Sachs and BBC News affirm the prediction that China will "grow old before it grows rich". America, however, thrives on its ability to innovate and create a diverse economy with new markets. Predictions anticipating Chinese prosperity were in large based on its capabilities to manufacture. Hopefully, this distinguishing factor will result in more optimism toward the depolarization of wealth inequality in America. 

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