Question

please answer and explain question number 2

1. Why do the rich get rich in America? 2. Should the rich "give a lot of it back”? 3. Why is inequality had for the rich as well as

Answer 1

ANSWER-2) Rising inequality harms economic growth. As income inequality increases, more and more resources will be concentrated in the hands of the wealthy and rich people. Consequently, the wealthiest are in a better position to steer policies to fix the directions which protect inequality at the expense of growth. The lower-income people have a higher propensity to spend their income compared to the rich. Therefore, it is important that rich contribute a lot of it earnings back in economy because when more and more of the nation's income are concentrated at the very top, that causes a decline in overall demand in the nation and weaken growth of economic activities. Moreover most of the time the wealth is acquired is acquired by chance and not superior ability; thus they should contribute more to improve their core values and capabilities. The contribution will also boost the demand for their products and improve the economy as well as themselves