Glossary / Key Concepts
KEY CONCEPTS FROM THIS VIDEO:
- People in middle- and lower-quintile households have prospered along with the rich over the years.
- However, the wealth gap between the top and the bottom is more prominent today than it once was, meaning that while Americans are getting ahead, some are getting ahead faster.
- While some are becoming richer by selling products to more people, others are using the power of government to enrich themselves.
- It is essential to differentiate between inequality and poverty.
- While people on the political right often do not realize that many among the poor lack quality education and face racism and prejudices, those on the left often see no hope and assume that the poor can survive only with government handouts.
- We should worry less about inequality and work instead to improve the schools that poor children are forced to attend, get rid of licensing that makes it harder for poor people to get a job or learn a skill, change zoning laws and land-use regulations that make housing artificially expensive, and change minimum-wage laws.
- Focusing on inequality has distracted economists and policy makers from the real challenges facing the poor. Instead, we should spend less time and energy on fighting inequality and more on creating opportunities for all Americans.
TERMS YOU MAY HAVE HEARD IN THIS VIDEO:
Inequality: Inequality refers to not being equal in wealth, rights, and opportunities.
Capitalism: Capitalism is an economic system in which private companies and industries control goods, trade, and profits.