The Government and Income Inequality

Civics The American Economy The Government and Income Inequality
Students learn about income inequality in the United States by looking at the distribution of wealth and identifying some of the causes and effects of income inequality. Then, students look at some of the ways in which the government addresses income inequality. Finally, students write a position paper regarding entitlement programs.

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Overview

In this experience, students learn about income inequality in the United States by looking at the distribution of wealth and identifying some of the causes and effects of income inequality. Then, students look at some of the ways in which the government addresses income inequality. Finally, students write a position paper regarding entitlement programs.

Objectives

  • Identify factors that influence income.
  • Explain how the government assists weaker segments of society.


Engage


an illustrated pie chart made up of people

Who has the biggest piece of the pie? Distribution of Wealth


The United States has been called the land of opportunity. It is also a nation of great wealth. Wealth is having a lot of money or valuable possessions. But that wealth is not distributed equally among American residents. In this experience you will learn about income equality and how the government addresses it.

Objectives

  • Identify factors that influence income.
  • Explain how the government assists weaker segments of society.


Which of the following statements do you think are true?

A) The three richest Americans—Bill Gates, Jeff Bezos, and Warren Buffet—own more money than the poorest half of Americans.
B) The share of wealth held by middle-class American families has been falling since 1970.
C) Seventeen out of every 10,000 people in the United States were homeless for at least one night in January 2019.
D) A high school dropout will earn $200,000 less than a high school graduate over his lifetime.
E) In 2019, women who worked full-time year-round made 82.3 cents for every dollar earned by men.

All the statements are true. Sources for the data:

  1. U.S. Federal Reserve figures from the first half of 2020
  2. Pew Research Center study, Feb. 2020
  3. HUD’s annual point-in-time count
  4. U.S. Census Bureau
  5. U.S. Census Bureau


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