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Scott Horsley

In America, the gap between the rich and poor has continued to widen despite the massive campaign by politician to end poverty. While many nations have seen an increase in income inequality, US have experienced a more speedy increase in the past few decades. As a matter of fact, data proves that the top 1% of the US population earn far more than the rest of the people. It is with this regard that Scott explains to the reader why the rich continues to be rich as the poor continue to languish in poverty. The article provides the major reasons behind the increasing among the rich. She seeks to answer the evident question in the mind of many; “what is behind the expanding income gap between the rich and the poor? This paper shall analyze the answers to the above question as provided by Scott Horslayin her article.

One of the major themes addressed in the article is the role of technology ins perpetrating inequality between the rich and the poor. The article describes that US economy has been converted to “a winner-take-all society”. The article outlines how technology has been used in the Tax industry to widen the gap. She says “the people who before used to go to any local accountant to pay their taxes are now able to use intensively-produced software instead”. This implies that the income of the local accountant have been sliced off. However, the Chief Executive Officer of the new tax software can now receive massive of income. The rapid change in information technology has caused an increased demand for educated and highly skilled personnel. This has led to the displacement of the less-skilled and the less educated. Scott Horslayexplains that increased progress in technology has worked in increasing the levels of income inequality. In other words, income distribution favors the intelligent and the privileged against the less privileged and less talented.

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Another theme which is greatly highlighted in the article is the superstar hypothesis. In other words, the current technological advancements with regard to communication have shifted competition into more of a tournament game in which the top are richly rewarded while losses are left unrecognized. However, the runners-up may get a share but it’s far less than what the winner receives. As jobs continue to require more skilled laborers, the less skilled continues to be displaced and therefore becomes jobless. There eminent outsized from various industries such as super sports and entertainment. This also continues to perpetrate the notion of “a winner take-all society”

Another theme highlighted by Scott Horslayis the issue of class warfare. The Republican Party is spotted as opposed to any move of addressing this inequality. The class warfare has alienated the middle class from participating in economic development and prosperity of US nation. Scott Horslayoutlines the reluctance of the Republican Party to address the eminent widening gap between the rich and the poor. Instead, they are spotted as advocating for personal hard work as means for one to scale higher in the ladder of wealth. As a matter of fact the Republican Rep. Paul Ryan was quoted as opposing the aspect of distribution of income as a means of bridging the gap. The article shows how the Republican Party has ensured that every program that would benefit the poor and the middle class has been halted while the taxes imposed on the rich have been reduced. The most shocking part of this subject is that the government of US is very reluctant in responding to the issue of income inequality.

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The article outlines that the step taken by president Obama to enact the tax policy against the rich is fundamental in addressing the issue of income inequality. However, the Republicans and many other liberal economists do not believe that the step is a prudent one. Instead they propose that the government should come up with policy that will increase the bargaining and earning powers of the middle class as well as their ability to claim their just share of the productivity which they participate in creating. The liberal economists believe that the tax policy is unfair to the rich while rewarding to the poor and the middle class. One of the major themes addressed in the article is the role of technology in perpetrating inequality between the rich and the poor.

The article describes that US economy has been converted to “a winner-take-all society”. The article outlines how technology has been used in the Tax industry to widen the gap. She says “the people who before used to go to any local accountant to pay their taxes are now able to use intensively-produced software instead”. This implies that the income of the local accountant have been sliced off. However, the Chief Executive Officer of the new tax software can now receive massive of income. The rapid change in information technology has caused an increased demand for educated and highly skilled personnel. This has led to the displacement of the less-skilled and the less educated. Scott Horslayexplains that increased progress in technology has worked in increasing the levels of income inequality. In other words, income distribution favors the intelligent and the privileged against the less privileged and less talented.

Another theme which is greatly highlighted in the article is the superstar hypothesis. In other words, the current technological advancements with regard to communication have shifted competition into more of a tournament game in which the top are richly rewarded while losses are left unrecognized. However, the runners-up may get a share but it’s far less than what the winner receives. As jobs continue to require more skilled laborers, the less skilled continues to be displaced and therefore becomes jobless. There eminent outsized from various industries such as super sports and entertainment. This also continues to perpetrate the notion of “a winner take-all society”

Another theme highlighted by Scott Horslayis the issue of class warfare. The Republican Party is spotted as opposed to any move of addressing this inequality. The class warfare has alienated the middle class from participating in economic development and prosperity of US nation.Scott Horslayoutlines the reluctance of the Republican Party to address the eminent widening gap between the rich and the poor. Instead, they are spotted as advocating for personal hard work as means for one to scale higher in the ladder of wealth. As a matter of fact the Republican Rep. Paul Ryan was quoted as opposing the aspect of distribution of income as a means of bridging the gap. The article shows how the Republican Party has ensured that every program that would benefit the poor and the middle class has been halted while the taxes imposed on the rich have been reduced. The most shocking part of this subject is that the government of US is very reluctant in responding to the issue of income inequality.

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The article outlines that the step taken by president Obama to enact the tax policy against the rich is fundamental in addressing the issue of income inequality. However, the Republicans and many other liberal economists do not believe that the step is a prudent one. Instead they propose that the government should come up with policy that will increase the bargaining and earning powers of the middle class as well as their ability to claim their just share of the productivity which they participate in creating. The liberal economists believe that the tax policy is unfair to the rich while rewarding to the poor and the middle class.

 

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