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How has capitalism affected income inequality?

Litha Trillow

Well, to answer that question, capitalism has had a huge impact on income inequality, and not in a positive way. Income inequality has been increasing for decades, and it's directly tied to the rise of capitalist economics.

Over the past few decades, we've seen a massive shift in the way that wealth is distributed across the world. And a big part of that shift has been driven by the profit-seeking behavior of corporations and the wealthy elite.

The statistics on income inequality are pretty staggering. In the US, for example, the top 1% of earners took home more than 20% of all income in the country in 2018. That's up from just 10% in the 1980s. And this trend is not unique to the United States. In fact, income inequality has been increasing in nearly every country around the world.

At the same time, the middle class has been shrinking as more and more people are pushed into poverty. In the US, the poverty rate has been relatively constant in recent years, but that's only because the definition of poverty hasn't changed. In reality, it's harder and harder for people to earn enough to support themselves and their families.

The problem with capitalism is that it incentivizes corporations and the wealthy to maximize profit, even if that means leaving others behind. We see this in the way that companies outsource jobs to countries with lower wages, or in the way that they lower wages and benefits for workers in order to maximize profits. And we see this in the way that the wealthy elite invest their money into assets that earn them even more money, rather than investing in businesses that create jobs and grow the economy.

So, to sum it up, capitalism has definitely had a negative effect on income inequality. We need to start rethinking our economic system to ensure that everyone has a fair shot at success, not just those at the top.