Peacock Scholarship

Progressively Institutionalized, Progressively Unequal: The disappearing Middle Class and Rising Inequality in the 21st Century

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The economies of the world are all connected in one way or another and the institutions that intertwine them create and allow for the flow of capital, both physical and human. The world also is a place of varying levels of economic inequality that is characterized differently based on a relative or absolute spectrum. The inequality that will be discussed within the text deals with the inequality of a developed nation and how the growth of institutions create an endless cycle of economic stratification and gradual demise of a middle class, focused particularly on the United States of America. The theory holds that as institutions grow and enact policies that focus at achieving stability and greater efficiency the opportunities that may have once been abound disappear creating a stronger class of “owners” and a weakened group of “workers”. The goal of consistent growth and growing productivity within a nation where wealth is not equitably dispersed will ultimately, left unchecked, create a wealth disparity like the world has never seen. Owners of capital who efficiently manage their wealth using the new regulations and technologies will be able to control and do more with less while those without do more for less. Ultimately a growth of capital over GDP, defined as Beta , with the capital, specifically factors of production, efficiently handled in the hands of a few wealth holders who must be relied on for the production and services rendered to the masses.

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  • 10/23/2019
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