Question

Does Income Inequality Impair the American Dream? No Replies Necessary. Clip #1 Gives a general view of the American Class system Clip #2 Argues that Income Inequality does impair the American Dream Cilp #3 argues against this statement. Provide your own thoughts in no less than 8 sentences

Answer 1

Yes, income inequality indeed impairs the American dream. When the rich is getting richer and the pooer is getting poorer, it impacts a person's motivation level which may even hamper his skills. This leads to a vicious cycle where inequality widens further. Inequality has adverse impacts on growth as poor people usually have a larger marginal propensity to consume. When they lack resources, the general consumption and demand in the economy goes down. This reduces the overall GDP growth rate and may even lead to excessive debt which can fuel the crisis - as in 2008 - and break the back of the American dream. The poor are hit the hardest by slow growth and they can no expect to own a house, respect and decent standard of living, all components of the American Dream without hope and resources.