Economic Inequality: The Gap Increases.
While we live in a capitalistic society that promotes and encourages a competitive market, we must abide by democracy’s rules and regulations as well. During the 1970s where equal economic opportunity and civil rights is at its early growth, the mean ratio between a CEO to an average worker is 40:1. Today, it is at an incredible 400:1, with CEO pay averaging up to and that one generally gets what he or she deserves, the cause of this surge of salary is not necessarily the result of hard $10.2 million. While it is a common argument that those who are skilled, talented and work hard deserve to end up on the top work and talent. In fact, the cause revolves around greed. “The trend has been [for executives] to be greedier and greedier, even though there’s a recession,” said Cynthia Richson, State of Wisconsin Investment Board. A few examples of this practice: 1) Robert Allen at AT&T received compensation packaged at about $16 million after laying off over 40,000 employees, and 2) in 1994, Albert Dunlap of Scott Paper received over $24 million after laying off 11,000. It is significantly unfair to have an economy that fails to provide fair wages and basic security for people who work hard, while the privileged 5% swim in excessive riches. While this may seem fair in the context of a capitalistic society, the fact that there is manipulation in the system makes it an unfair economic inequality, which in effect, can translate to political inequality.
While economic inequality is the issue here, it is also worth discussing its broader effects for not only does this issue carry out economic inequality, but it also affects political outcomes. It is, ultimately, who gets the financial advantage on state-wide political elections and which quintile group becomes the priority. With money as a measure for power, the top percent of the population places itself on top of the queue list while the rest are unheard. Soft money, while banned nationally, is still present and legal among states. Its influence is significant for it provides individuals with the greatest amount of money, the greatest amount of influence – a violation of political equality. A great example of this would be the process involved during the recall of California’s past governor, Davis, for Issa’s million of dollars of contribution towards the recall is the only reason why the recall succeeded. Statistically, “soft money” expenditures spent by individuals doubled between 1996 and 2002.
In conclusion, our founding fathers promised and hoped that our nation would have and fully practice democracy, and its key components: popular sovereignty, political equality, and political liberty, but with the increasing gap of today’s “aristocrats,” the strength of America’s democracy will be continually threatened, for inequality determines how effective democracy is. That is why Thomas Jefferson feared that democracy would be at risk in a highly unequal society.
