‘If the poor people know how rich the rich are, then there will be riots on the roads.’ American actor and comedian Chris Rock said this in an interview given to the New York magazine in 2014. Chris was talking about an increasing gap between the rich and the poor. By saying this, they highlight the challenges of research on the difference between the rich and the poor.
What is the best way to measure the gap between the rich and the poor? Most of the researchers who make the difference between the rich and the poor make the scale of income. The main reason is that the figures related to income are more and easier to get. But, we have to understand that the rich do not become rich with a year’s income. This happens because of adding to the year-old property. It is now difficult to calculate the assets of the former.
The rich want us to keep speculation about their property and income. Never be too rigid Otherwise, it would be the same, which was expressed by Chris Rock in the interview. Those who research on the gap between the rich and the poor, they need more data to get an accurate estimate of the depth and the scope of this gap. Although no one wants to know that the truth is known to be violence. But it is important for everyone to know the truth about the distance between the sections of society. The best information about the gap between the rich and the poor gets us from assessing the property of the people.
There are many ways to find inequality in society. The most popular form of this is people’s income. The reason is clear. The figures related to income are present in abundance. It is also easier to calculate them. Although this does not know the real picture of the difference between the rich and the poor.
The property against it does not represent our fresh income. Rather it is the result of earning our years. Many times, we also get through the hard work and earnings of these previous generations. If scholars, researchers and policy makers research on the property, then they will have an accurate estimate of the depth and width of the gap between the rich and the poor.
How much wealth does one have from him, it gives us information about his life and the opportunities for progress in life. Our property is determined by how much money we spend in the training of children and how much money will be made to buy property. How much money will spend on your comfort and how much investment will be in the retirement plan.
We do not make much difference with the payoffs and sudden problems we face when having assets. If you are rich, you have the property then you will not have to think much about taking a new machine instead of a spoiled washing machine. If there is a disease, you can spend money on a better treatment immediately. Against them, a poor person will think hundreds of times to change him when the water heater fails, and if falling ill is the biggest problem for any poor person.
If we look at the gap between the wealth of the rich and the poor in America, then this is also the biggest difference in developed countries. The Hudson Institute of America is generally considered to be a supporter of the capitalists. The Hudson Institute said in its report of 2017 that in 2013, the richest 5 percent of the people in the US possessed 62.5 percent of the country’s wealth. While thirty years ago, the richest 5 percent of Americans had 54.1 percent property in the country. The result was that the remaining 95 percent of Americans’ assets were reduced from 45.9 percent to 37.5 percent.
Because of this, the annual average income ($ 6,39,400) of households with more revenue in 2013 was seven times more than the income of households with average income ($ 96,000). This was the biggest distinction in the last thirty years of the income of the rich and poor in America.
The research by Immanuel Savage and Gabriel Zucman, who researched inequality, was discovered that the United States’s richest 0.01 percent of people had 22 properties in 2012. While these people had only 7% of the country’s assets in 1979. Against these figures of property, if you only see the figures related to income, then the picture will look different. In 2013, America’s richest five-plus family used to earn only 30 percent of the total income of the United States, while these people had about 63 percent of the property.
America is not the only developed country, where the gap between rich and poor properties is becoming so deep and wide. But America is far ahead in terms of the other rich countries. America’s richest 5 percent people have more than 91 times the wealth of the average American. This is the biggest difference between the world’s 18 richest countries. Between the rich and the poor, the list of the biggest figures in the list of the rich and poor is only half the difference between the rich and the poor. The tax cut and jobs act made in the US recently will increase this gap.
The most important provision of this law is tax deduction of people. Those who pay the maximum tax of 39.6 percent will be paid only 37 percent of the income due to this law. The number of families who make property tax will also be substantially reduced by this law. Apart from this, corporate tax has also been reduced from 35 percent to 21 percent.
Its greatest advantage is to the rich. Taxes of 20 percent tax payers will be reduced by an average of $ 40. The taxes of the rich will be reduced by $ 5420. The richest 0.1 percent people will save $ 61,920 due to this law. By 2015, the tax savings of the richest people will increase to 1, 5, 52, 200 dollars. While the rest of the tax savings will remain marginal. All these tax concessions will end in 2026.
People who pay a higher tax will also benefit from other aspects of this law. As all the research suggests that the best way to reduce tax rates is to the rich. At the same time, the reduction of the number of property taxers will mean that these people will have more assets for next generations.
Supporters of this tax law claim that this will not increase the gap between the poor and the rich, because the rich people will save the money in the end, then it will reach the people of the lower strata of society by way of market.
While research suggests that this does not happen. Tax laws bring benefits to the rich. But, this does not lead to economic progress. Rather, poor people get fewer opportunities for training. Their average age also decreases. In the year 2017, the average age of the Americans has decreased.
So is it true of Chris Rock that the poor Americans do not have the exact idea of the rich? Surveys show that Chris Rock is right. The answers of those involved in a 2011 survey show that they are unaware of the wealth of the rich and the poor. The survey also showed that the average Americans are concerned about the rising gap between the rich and the poor. They do not want to make a difference in the wealth of the rich and the poor.
Now is this gap between the rich and the poor Americans ethical and socially correct or not? Can there be riots? The answers to these questions are not clear at the moment. Whatever happens, but first, it is important for us to know that there is a gap between the rich and the poor in America. Then what we will do about this information, it depends on us.
(image credit: E! News)