Question

The Great Recession of the late 2000s magnified already rising income and wealth inequalities. Using details and examples from Chapter 30, identify and discuss the inequalities found in the US economy.

Answer 1

The recession of 2008 exacerbated wealth inequalities in the United States, with the top 1% of earners gaining wealth while the average American worker suffered. The recession had the greatest impact on poor Americans, who had less in savings and were more vulnerable to economic hardships. Those who were already wealthy often had diversified portfolios and other financial safety nets that allowed them to weather the storm. As a result, income and wealth inequality continued to grow after the recession, with the top 1% of earners continuing to gain wealth at a disproportionately higher rate than lower-income workers.