Research on the root causes and countermeasures of economic and social inequality in the United States
In the past thirty years, the gap between the rich and the poor in American society has continuously widened. The moderate inequality can drive economic growth but excessive inequality will impede it. Income inequality, although, is a global issue, which plays a particularly vital role in the United States given the degrees of inequality and variation trend of recent years. The policies, aim to reduce opportunity inequality and decrease the impact on economic rent, can improve income allocation and promote productivity level, and other policies can also effectively reduce inequality degree and increase income. These policies form the main body and foundation of the agenda to promote inclusive growth.
The main factors leading to inequality include: the impact of trade and globalization, technological progress and tax reduction policies, and the manipulation of elections and policy-making by capital forces, the weakening of the impact of labor forces on policies, the impact of historical and cultural factors as well as education on income differences, etc.
There are a lot of proposals on the table in the US reform, most of which are technical adjustments, including raising the minimum wage, raising the progressive tax law to make the tax law more progressive, which reflects the spirit of equality, taxing wealth and income, increasing educational opportunities and so on. There are great obstacles for the United States to carry out democratic socialist reform, because it is very difficult to promote this reform. The power elite controls political and social power, and the rich oppose wealth tax increase. The penetration and influence of wealth and chaebols on the election campaign is a legitimate influence under the American regime. Therefore, the U. S. economy and society have a long way to go to deal with inequality.
IIE analyzes a series of policies and measures taken by American society to cope with economic inequality through a specific study on the root causes of economic and social inequality in the United States, which can be referred and adopted by other countries.