Final answer:
Wealth concentration, also known as wealth inequality, occurs when a small percentage of the population, like the wealthiest one percent in the United States, controls a significant portion of the nation's money, leading to a substantial power imbalance in society.
Step-by-step explanation:
When a small percentage of Americans control a large percentage of the available money, this is referred to as wealth concentration or wealth inequality. This phenomenon is evident in the United States, where the wealthiest one percent of the population holds roughly one-third of the nation's wealth, while the bottom 50 percent controls a mere 2 percent. This disparity mirrors the conditions of a bygone era known as the Gilded Age, leading some to refer to the current situation as the second Gilded Age.
The upper class in America consists of the very affluent, often owners of major businesses, industries, and financial institutions. Their influence extends beyond their economic power, potentially impacting governmental policies and decision-making more significantly than the majority of the population. Globally, wealth inequality not only separates the richest from the poorest within countries but also among nations, affecting opportunities and living standards worldwide.
Such a level of wealth concentration is not just a reflection of economic status but also highlights the underlying social and political dynamics that come into play when disproportionate power is vested in a small fraction of the populace. This reality has sparked discussions and research on the effects of wealth and income distribution on society as a whole.