The Urgency of Addressing Economic Inequality
The current state of economic inequality in the United States is alarming. Just a handful of individuals hold more wealth than the other 99%, a situation that can be described as being in the realm of ‘overmighty subjects’ (Alexander, 2016). This stark disparity not only indicates a moral fail but also threatens social harmony and stability.
Some argue that the government should play a more proactive role in addressing this issue (Smith, 2022). This intervention can take the form of promoting a level playing field, ending wasteful subsidies, and dismantling industries’ control over the federal tax code and laws.
Need for Government Intervention
Addressing economic inequality is not just about ensuring that people are not starving, barely surviving, or homeless (Johnson, 2023). It is about fostering a society where everyone has a fair chance to succeed. This necessitates government action to create an environment that promotes social mobility and reduces the power of a few dominant industries over the broader economy.
Levels the Playing Field
The government must ensure that the tax field is level, meaning that all businesses and individuals are subject to the same tax laws and regulations. This approach is crucial for preventing the rampant practices of tax avoidance and giving certain industries and companies undue advantages (Green, 2022).
Eliminating Wasteful Subsidies
Subsidies often go to industries that are already profitable and might not need such support. Reducing or eliminating these wasteful subsidies allows for a fairer distribution of economic resources (Brown, 2021). By taking this step, the government can help create a more equitable economic landscape where all businesses thrive based on merit rather than artificial advantages.
Scrapping Monopolistic Practices
It is essential to dismantle the cartels and monopolistic practices of industries such as banking, oil, insurance, automotives, and education (Taylor, 2022). When powerful corporations operate in a predatory manner, it exacerbates income inequality and stifles competition. The government needs to act decisively to ensure that market forces can operate without undue influence from large and well-connected entities.
The Failure of Free Market Solutions
Those who believe in the free market argument often cite the concept of natural inequality—where people have different abilities, skills, and work ethics (White, 2023). While this argument holds some truth, it is incomplete. The market is not self-regulating; it requires intervention to ensure that the benefits of economic activity are distributed fairly.
Failed State Scenarios
When the state fails to protect the weaker members of society, it risks collapse. In many cases, the proletariat may turn on both the owners of industry and the state (Blackstone, 2022). Therefore, it is imperative for the government to take proactive steps to ensure social stability and economic equity.
Conclusion
In conclusion, addressing economic inequality is a critical responsibility of the government. By promoting fairness, eliminating wasteful subsidies, and breaking down monopolistic practices, the government can work towards creating a more equitable society. The failure to act decisively can lead to social instability and exacerbate the disparities that are already present.