book

America's Growing Economic Divide

21 Pages 1606 Words 1557 Views

The hype surrounding celebrities is like nothing else in our society. Many people envy their million dollar mansions and lavish lifestyles. If you were to poll a majority of American's and ask them, "Who do you think the most successful people in the country are?" I would be willing to bet a majority of them would lists superstars like Tiger Woods, Brad Pitt, and Taylor Swift. While most of our society stargazes and obsesses over this segment of our society, another part of our society goes virtually unnoticed, while raking in exponentially more money than the best superstar or actor could ever dream of making. In addition, this group has tremendous amounts of power that is used to influence other sectors of our society. The segment that I am referring to are the top 0.1 percent (in terms of total wealth) which is comprised mostly of heiress, hedge fund managers, and CEO's. These Power Elites are responsible for the direction of our country. In fact, most Americans now recognize that the biggest corporations, and the very wealthy have disproportionate political influence. A Pew Research Center survey released in December found that seventy-seven percent of Americans agree that, "There is too much power in the hands of a few rich people and corporations." Pew also discovered that sixty-one percent of Americans believe, "The economic system in this country unfairly favors the wealthy"(Dreir 2014). For my paper, I was motivated to discuss how our current societal system benefits the richest part of society, while hurting the rest. The top paid Hedge Fund Managers in America are the current leaders in terms of annual salary. George Soros, the list leader, brings in over $4 billion a year that amounts to an hourly salary of over $1 million dollars per hour. Following him are David Tepper and Steven Cohen, who both make over $2 billion a year. In total, the twenty-five highest-earning hedge fund managers made $24.3 billion in 2013 (Vardi 2014). For comparison, in the same year the GDP of El Salvador was $25.1 billion for a population of over six million people (World GDP Rankings 2014). Those in favor of high salaries for CEO's and Hedge Fund Managers would contend they are necessary for companies to compete in our capitalistic market. These executives preside at the top of their organization, and are responsible for their overall direction. They represent the organization as the face of the organization that the public sees.The companies with the highest paid CEO’s are often publicly traded on Wall Street; their performance is important to maintain share price, and attract investors. Potential Investors could be Hedge Fund Managers like the Soros’s, Tepper's, and Cohen’s who are looking to capitalize and earn a return on their investment. This return on investment, benefits our society according to a capitalist perspective. If businesses are performing well they will expand, and more jobs will be available. In turn, this helps the middl

Read Full Essay