Economic Inequality and Democracy's Decline in America

Introduction: The Myth of Equal Opportunity

New York is a city synonymous with America to many people and societies around the world. It is a land of freedom and opportunity, symbolized by the Statue of Liberty standing in New York Harbor — a place that does not discriminate based on background but allows people to chart their own destinies. Or does it? The New York of the 1960s or even the 1990s no longer exists. Economic inequality has run rampant in New York as it has in many metropolitan cities. Economist and journalist Bill Moyers reported that "among our largest, richest 20 metro areas, less than 50 percent of the homes are affordable," and that "inequality in housing has reached Dickensian dimensions" in New York City (Winship). This paper explores how economic inequality undermines the very democratic principles that shaped this country. When economic inequality grows too severe, opportunity is no longer available to all, democracy suffers, and the nation as a whole is weakened.

A Financial System That Protects the Wealthy

Part of the origins of economic inequality lies in the many systems in place that function only to protect the rich. Few Americans can forget the economic crisis of 2008, when the government bailed out the corrupt institutions responsible for the collapse. This episode is part of a broader pattern: in America, the wealthy remain a protected class. As Reich points out, there are numerous examples from corporate America of CEOs running their companies into ruin and then securing massive payoffs for themselves as those companies declare bankruptcy. "In early 2012, The Wall Street Journal looked into the pay of executives at 21 of the largest companies that had recently gone through bankruptcy. The median compensation of those CEOs was $8.7 million — not much less than the $9.1 million median compensation of all CEOs of big companies" (Reich 11).

Reich explains that this occurs because these CEOs typically pack their boards of directors with allies who ensure generous compensation regardless of performance. This is a symptom of an unregulated financial system. When a financial system is characterized by such marked unfairness — one that consistently favors the super-wealthy — corruption of this kind is bound to persist and deepen.

Housing Costs, Minimum Wage, and the Struggle to Survive

A significant dimension of today's economic inequality involves rising housing costs alongside a minimum wage that has not kept pace. All over America, but particularly in metropolitan areas, housing costs continue to climb while wages in many places remain too low to meet them. Barbara Ehrenreich documents this struggle vividly in her book Nickel and Dimed. During her undercover experiment living as a low-wage worker, the money she earns on shift is barely enough to survive on — she makes $2.43 an hour plus tips and rents a cabin behind someone's swampy backyard. She finds that many of her coworkers face the same predicament: they share rooms in flophouses, trailers, and cheap hotel rooms. Few seem at peace with their living situations, and with good reason — their housing is cramped and financially crushing.

One can conclude from Ehrenreich's account that a major manifestation of economic inequality is the lack of access to affordable housing. When people cannot secure stable, affordable housing, every other area of their lives is threatened and the ability to thrive becomes impossible.

Conclusion: Demanding Accountability and Real Change

Economic inequality is at the root of so many of America's problems. One could argue that it is among the primary reasons that populist political candidates have attracted large followings: by continually promising struggling Americans who feel forgotten that they will fix the economy and make life more bearable, such candidates tap into a legitimate and deep grievance. Yet many of the structures currently in place do little to rectify the underlying unfairness or level the playing field. In fact, notable institutions exist specifically to protect the rich — including a political system in which officials too often bail out those who have stolen from and deceived the public. Likewise, a media that glamorizes wealth does little more than idealize that lifestyle, while implicitly shaming the middle class and the impoverished.

Finally, members of a society who continually refuse to acknowledge class — or to properly reckon with its consequences — only contribute to worsening the problem. Part of the crisis stems from the fact that so many Americans decline to demand change or to elect officials who will genuinely protect them from these injustices. In short, Americans must become more aware of both the passive and active behaviors through which they perpetuate economic inequality, and take responsibility for pushing toward a more equitable society.

Works Cited

Ehrenreich, Barbara. Nickel and Dimed: On (Not) Getting by in America. 2017.

Kendall, Diana E. Framing Class: Media Representations of Wealth and Poverty in America. Rowman & Littlefield, 2011.

Reich, Robert B. Beyond Outrage: What Has Gone Wrong with Our Economy and Our Democracy, and How to Fix It. Vintage, 2012.

Rudnick, Lois P., et al. "Class in America: Myths and Realities." American Identities: An Introductory Textbook, Blackwell, 2006, pp. 264–271.

Winship, Michael. "New York Is for the Rich Only: 'Inequality in Housing Has Reached Dickensian Dimensions?'" Salon, 9 Nov. 2015, www.salon.com/2015/11/07/when_the_rich_took_over_our_neighborhood_partner/.