im okay with the wealth gap

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  The wealth gap in America is increasing — that's no secret. Just look at this income-based graph by the federal reserve. Over the past 10 years, the top 1% have tripled income, while the bottom 50% has stayed relatively consistent. 

When asked about the increasing divide in wealth and power, the most common reaction is fear or anger. They might think that since the rich get richer, the poorer get poorer. Mind you, this is not my own saying. The Percy Bysshe Shelley attributed aphorism (I failed that vocab quiz too btw) says "The rich get richer and the poor get poorer." 

In any expanding economy, wealth tends to concentrate first among those who create and take risks. When new technologies or markets, those risk takers get most of the rewards. After all, you reap what you sow. How could this be unfair? It is just a reward for the risk takers. Over time, the profits, income, and wealth slowly distribute back to the common people. Economists call this the Kuznets Curve. When nations experience economic growth(GDP per Capita increases), inequality rises , stabilizes, and declines as time goes on.

Furthermore, when looking at the distribution of household wealth, it is easy to only focus on the top. But when we look at the bottom, their incomes are increasing as well. In fact, the poverty rate for Americans has gone down by 11%.

    Obviously, the current system is not perfect. It is true that it is way harder to move up the classes than it is to stay in them. However, it is also true that 80% of millionaires are self made. Even though it is impossible to get into the “old money” class, it is very possible to get into the “new money” class. The wealth gap might be closing, but the opportunity is always there.

Comments

  1. Nishitha KalapuramOctober 12, 2025 at 3:35 PM

    This was an interesting post because I've only ever heard of people talk negatively about the increasing wealth gap. It widened my perspective to be able to see a different view of the same issue. I've also never heard of Kuznets Curve, so I appreciated being able to learn about it. I am curious, are there any real-life examples you can provide that show the trend of Kuznets Curve? Additionally, I'm glad that you acknowledge the difficulty in moving up classes. While it is possible for a person to become a millionaire, having a middle class versus a lower class background can drastically change the amount of work a person has to put into it and the opportunities a person is given.

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  2. Aditya SheelvanthOctober 12, 2025 at 10:48 PM

    You make a compelling argument that economic inequality isn’t purely negative, framing it as a natural phase of growth supported by the Kuznets Curve. I like how you balance the acknowledgment of flaws in the system with optimism about upward mobility. Your mention of self-made millionaires adds a hopeful perspective that opportunity still exists despite widening wealth gaps.

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