Trends in income distribution in the United States Essay

Trends in income distribution in the United States - Essay Example The higher concentration wealth to the a few people will reflect a hierarchical structured society. Moreover, a relatively sprite distribution of income among people will reflect a bigger middle class. Either two of the circumstances has an impact on the situation, conditions and perceptions of people. The first situation implies a better situation for those who are more affluent or those who are in the upper strata of society. This can also dictate an unfair playing ground between the have’s and the have not’s. The second situation entails more social equity. This means that opportunities are fair to all people regardless of their class. This will also reflect the government’s structure and the degree of welfare it provide to its citizens. It may be noted that the gap in income distribution may be a major cause of negative perceptions among Americans, which divides the country into economic lines (Allen, 2007). Scholars have studied trends in the income distribution in various industrialized countries including the United States. In the said studies, the scholars have identified a pattern in the income distribution of industrialized countries particularly in the trajectories of income distribution. The common features suggest a systematic pattern in which inequality at first increased, reached a peak, and later declined in the course of industrial development. This creates an inverted U shape figure. Further studies reflect that after the 1970s, a reversal of the first study occured (Allen, 2007). Income distribution can be gleaned through various measures such as data on household income, individual income or tax accrued to the government. Income distribution can also be studied vis-Ã  -vis other factors such as gender, regional distribution, race, etc. Each year, the U.S. Census Bureau releases data on the