A true middle class would be represented as a large block of people in the center of the income growth chart when in fact the bulk of income is located toward the right of the chart. Income growth that is equitable would mean a chart that was relatively even across the boards or at least one that resembles a bell curve.
Income disparity has tremendous implications for social justice. On a very practical level, most Americans do not and cannot wield social or political power. Ordinary employees do not make an impact on corporate decision making or on large-scale spending -- let alone how to steer political lobbying groups. Those who work hard for little pay also have little to offer their children in terms of upward social mobility. A politically disenfranchised group of working poor cannot contribute to business growth. Race and gender are also correlated with income disparity, showing that all are not created equal in the United States. Furthermore, access to quality higher education remains the domain of the rich. With greater economic power, the very wealthy also have more control...
Research has shown that "growing inequality leads to more health problems in the overall population -- a situation that can reduce workers' efficiency and increase national spending on health, diverting resources away from productive endeavors like saving and investment," (Bernasek 2006). "Asset price bubbles" are another grave consequence of increasing income disparity in the United States (Bernasek 2006). Asset price bubbles are caused by investment distortions, and misallocation of both public and private money. In the long run, income disparity hurts everyone as consumer spending drops and small businesses either cannot afford to re-invest or shut down completely.
References
Bernasek, a. (2006). Income Inequality, and Its Cost. The New York Times. Retrieved 11 Feb 2010 from http://www.nytimes.com/2006/06/25/business/yourmoney/25view.html
"Growing Income Disparity and the Middle Class Squeeze." (nd) Retrieved 11 Feb 2010 from…
