Q. 13 Why is there reluctance on the p... [FREE SOLUTION]

Chapter 15: Q. 13 (page 377)

Why is there reluctance on the part of some in the United States to redistribute income so that greater equality can be achieved?

Short Answer

Expert verified

Reluctance to address income inequality stems from a fear that life is a "zero-sum game" meaning gains by one come at the cost of others. The U.S meritocracy perspective believes that anyone who has had financial success was better, smarter, and worked harder to earn it. While anyone who hasn't had financial success is because of a continual personal failure.

Step by step solution

Concept Introduction

1. The United States business culture prioritizes low prices and high returns above all else, workers have very little bargaining power. If increases were made to the financial standing of low-income workers, they would be less desperate to work and businesses would have to actually attract them to work than rely on fear of starvation.
2. It is true that investment and entrepreneurial risk-taking will decrease anytime there is a reduction in returns on investment/risk. However, investments and entrepreneurs will still exist just fine.

3. Any country that provides opportunity, quality jobs and standard of living will always be attractive to immigrants from areas with less opportunity. Any increases in the standard of living will increase to some degree the desire to immigrate.

Step2. Explanation

From the laborer's view.
Reluctance to address income inequality stems from America's culture of demonizing the poor, immigrants, and the working class.
If the lower class were brought out of starvation wages, they would have more bargaining power and businesses would not be able to take advantage of them as easily.