When thinking about the origins of economic inequality, it ages back to the earliest humans, when concepts of property and trading came to be. However, one of the first examples could be observed even before the United States was free from Britain’s rule. Early European-Americans also believed against wealth being concentrated amongst one individual or a small group of people. Many newly elected officials worked to keep property equally divided within the colonies. Certain state legislatures were even passed which increased taxes on the wealthy when their property became excessive. After America gained independence, the newly separated country started seeing many individuals grow in wealth and property very rapidly. Efforts to tax these individuals were met with revolts and riots, threatening chaos.
To address these concerns, policymakers like Thomas Jefferson proposed the introduction of progressive taxes – a tax where the average tax burden increases with income, or in this case property and wealth. Other taxes were also introduced to fund social programs including one of the very first pension systems. Many efforts were made to reduce the land holdings of these wealthy people, but eventually ended up failing, mainly because Americans largely disliked interventionist governments and high taxes.
During the early 1800s, a term called “class conflict” started being used very commonly to describe the dispute between different economic classes. Due to increase in production of goods as a result of slavery practices and urbanization, the rich became even richer. Some reforms took place, however, that are worthy of mentioning. Unlike the previous century, voting was available to all white men, regardless of social status. Additionally, public education systems were introduced, opening up the possibility for economic mobility. Though these methods of reform did have some impact, governments did not resort to redistribution methods like taxes. Most tax proposals ended up being rejected during this time.
Concerns about the rapid increase in economic inequality within the nation skyrocketed in the 19th century during the Gilded Age, when a few businessmen gained immense wealth and power, while the working class suffered. Though official regards to the issue didn’t arise until that time, America has had a long history of fearing that a few individuals would control the majority of the country’s wealth, while the remainder of the population was left in poverty. Currently, in the 21st century, we can observe that economic inequality is at an all-time high, with the wealthiest controlling the majority of our country;s money. Many court rulings end up being in the favor of these upper few, giving corporations more economic power. Looking back to our past with economic inequality, we can observe a continuation of this trend. Though reform is being made, in the form of higher estate taxes and the “wealth tax”, as we debate the future of inequality in our country, it is important to consider that economic equality was one of the founding ideals of our country, and will continue to remain an important issue in the foreseeable future.
Comments are closed