United States Economy
By Fareed Siddiqui
Equity
Current
Out of all the macroeconomic objectives, the one that the United States has to most trouble reaching is equitable distribution of income. The US has a Gini index (wealth distribution in a country) of 45.6 which is much higher than that of other developed countries such as the Great Britain and France which have Gini indexes of 34.2 and 28.9 respectively. This shows just how poorly distributed the money in the United States is with the majority at the top with the wealthiest people.
Government Policy
The United States currently uses something called earned income tax credit to try and fix the distribution. Earned income tax credit is when that government refunds part of tax to low to moderate income working people particularly with children. This is can be done because of the high taxes placed on the wealthy.This is meant to improve distribution of income as in a way the taxes on the wealthy are being brought down and are being given to the poor through the tax credit.
Improvement
The United States has one of the highest levels of wealth disparity out of the developed world. The rich keep getting richer and the poor keep getting poorer. One way the government can deal with this problem is taxing the rich higher amounts while lowering the taxes for the poor. After getting the tax revenue from the rich, they can put it into many services for the poor such as free healthcare, government housing projects, education, etc., this would greatly reduce the disparity in America.