Final Paper

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Annotated Bibliography

Stephen Benoit

GEN499 General Education

Tony Kashani

April 10, 2017

Introduction: In United states of America, wealth or income inequality is valuable because it sometimes gives people incentives to work hard and try to adopt other business ideas. However, in a reality perspective it harms the American society, socially and economically. This is due to greater inequality stifles upward movement between generations. Therefore, it is harder for talented and hardworking Americans to get what they deserve through toiling because the income is concentrated, under the custody of a certain group of people, compromises the ability of a democracy for equal distribution of resource and equal political voice to all citizens regardless of race, ethnicity, and working class. So, as we understand “wealth disparity”, in the United States exhibits wider wealth distributing inequality, majorly witnessed between rich and the poor. For that matter, there is need to look deep into the matters attributing to wealth inequality in States with a policy to review about wealth distribution. This will define the wealth distribution imbalance. Wealth disparity (inequality) is a threat to American development among the poor majorly attributed by federal minimum wage, culture, racial and gender discrimination. It can therefore be reduced through democratic, equal distribution of resources across all ethnic groups and race.

Annotation 1:

Kington and Smith (The Journals of Gerontology series: Psychological sciences and social Sciences: Special issue, from 74). Racial disparities in Disability among older adults.

The articles in this journal tried to examine the association that is seen between races in relation to assets allocation then reported difficulties performing instrumental daily activities. This is also associate with age; disparities in disability among older adults. This journal has used the asset and health dynamic among the oldest old (AHEAD) in its study to focus on persons of 70 years and above. The study is supported by statistics, giving clarifications that wealth disparity is in anyway associated with age, in relation to income dispersion accounts for today’s wealth disparities seen in older Americans (Smith, 1997).

Statistically, the distribution of the demographic and health-related issues for women by race showed that African American women were on average younger, which is less likely as reported disability than white women. Therefore, it affirmed that wealth disparity is majorly observed among older minority households, who are blacks as compared to households of whites. Other factors related to wealth disparity in the article include income, health and inheritance.

Annotation 2:

CESifo Econ Study (2017) 63 (1): 97-118; Employment Adjustment and Controlling Minority Ownership structure; (evidence for stewardship governance).

This article purportedly tries to investigate the manner at which the government is controlling the minority ownership structure on the employment adjustment of firms in the United States of America. The article further proposed the entrepreneur-operated contend minority structure firms, depending on social and psychological context of trust in management and their employees, giving a directorate with condition of stable employment.

Annotation 3:

Leipold, K. (2014). Spill over Effects of Minimum Wages in Experimental Wage Negotiations. Cesifo Economic Studies, 60 (4), 780-804

It is always the portion or the amount of one to be paid after doing a particular job. Who benefits more than the other, or in the other hand who is to suffer or gain more in accordance with the federal minimum wage limit raise. In the argument, it is evident that many people are enjoying the high wage pay these days. According to the article, it could be because of people being illiterate so they cannot work for a high wage job. Therefore, people are supposed to go to school, obtain degree for high pay. Here, the societal issue is the federal reduced wage will be shown in the background information. The solution to the problem is the raising of the federal minimum wage limit, benefiting majorly the low-class folks in the country. According to M. Knabe, about the spill over effects of minimum wages in experimental Wage Negotiations, there is a solution of conducting a lab experiment about spill over effects of minimum wage. This means that there will be a solution to wage policy that majorly affect the low incomes even though they work so hard to get money, only to be rewarded in a small way (Leipold, 2014).

Annotation 4:

Rakesh Kochhar & Richard Fry, (PewResearchCenter); Wealth inequality widened along racial, ethnic lines since the end of Recession.

This article majorly focussed on the key contribute to the decline in household economy of the people who are the minority, and the origin of the wealth disparity. It outlined the housing and financial markets as the major causes of recession, which roughed up American families’ economy or net worth. Not all households have benefited from the mended asset price, but just a portion of these people majorly high income, or rich Americans. This has showcased the widening of wealth inequality along racial and ethnicity. Evidently, white households are wealthier, was 13 times of the medina of black American households back in 2013. This is an indication that race has played a role in terms of wealth allocation among American with white Americans being highly favoured (Fry, 2014).

According to their research, the wealth inequality has significantly grown since the year 20007, with rationale/ median wealth ratios indicates the higher increase in wealth inequality in white-to-black than in white-to-Hispanic (any race).

Below is the sample of a graph showing the inequality trend.

Source: PEW RESEARCH CENTE

Annotation 5:

N. Gregory Mankiw, Harvard University, Cambridge- USA, The department of Economics, (Eastern Economic journal, 2010, 36, 285-298), Spreading the wealth around: reflections Inspired by Joe the plumber (Presidential Address).

This article majorly addressed the political overview of wealth distribution in United States of America, discussing the policy that concerns optimal taxation wealth distribution in the Country’s income; the trade income and inequity. The key issues addressed in the journal include income distribution, utilitarianism, that is taxation (Mankiw, 2010). The writer of the journal article used the political mileage and the engagement of Joe Plumber with the former US president (the then presidential candidate). Joe was concerned about the taxation to high income household. He asked about the Senator, Barack Obama’s proposal about the same. Therefore, the journal was more about the income taxation and fairness imposition among both the rich and poor household. So, the author of the journal tried to analyse the possible reasons for the growing of wealth inequality in the country, the facts about the tax burden, and the optimal taxation of height. About optimal height of taxation, Mankiw gives a show of utilitarianism is connected to policy which has never gone with common Americans. He argued that it is preferable for every citizen to have the same separable preferences, whereby marginal utility needs a similar after-tax income.