Over the past decade, there has been an increasing gap between the rich and poor. This takes several different forms and can create many problems that you see crop on and the helps create several divisions that you see in the world today since we make snap decisions based on socioeconomic standings.
This is one of most concerning aspects of the growing gap between the rich and poor. Most public school education is funding based on property taxes in the area but people with money are discouraged from buying property in poorer neighborhoods since the schools aren’t good. So the poor public schools get poorer while rich schools get richer.
This is one of the reasons for and against school choice. Vouchers to attend private schools can let a kid get a better education. However with every voucher given to a student, that takes away even more money from the poorer schools. So it creates more problems rather than solving them and that’s before mentioning how kids who use vouchers aren’t getting a better education since the kids can’t keep up or they miss out on special education programs in public schools that are doing new programs based on grants to help learning goals.
Then more worrisome is the fact a college education is becoming the equivalent to a high school diploma from 30 years ago. Even retail jobs prefer hiring a college educated employee over a high school graduate. But the cost of college has exploded over the past ten years. So kids are going into extreme debt just to get a entry level job. So this just creates more problems and increases the gap of rich and poor after education since you can’t get out of debt.
The Missing Middle Class
People use to be to be middle class when they weren’t super rich but not living from paycheck to paycheck. Since the 80s, this middle ground has been in the decline. Unfortunately many people who were lower middle class are now living from paycheck to paycheck.
The living wage is constantly going up but so is the cost of inflation. You could live a decent life with a minimum wage job in the 1950s as long as you watched your money and worked. This is no longer true. If you have a minimum wage job, you often have to work two jobs just to pay the bills. Yet the people who are at the top of a company are making millions of dollars. They aren’t spreading the wealth.
One of the biggest things causing the gap between the rich and poor is from investment programs. People who are poor or even middle class have a tendency to choose investment options that aren’t seeing any growth. Savings accounts, CDs and even houses are barely getting any interest right now. Therefore the money invested isn’t growing. But people who invest in stocks and bonds are seeing much more growth but they cost more at the beginning.