American Inequality

“America currently has the most inequality, and the least equality of opportunity, among the advanced countries. While market forces play a role in this stark picture, politics has shaped those market forces.”

“Today’s inequality is not the result of the inevitable evolution of capitalism. Instead, the rules that govern the economy got us here. And we can change those rules using what we have learned in economics and what we know about the people who make the rules and how they are chosen.”

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– Joseph E. Stiglitz (Nobel Prize–winning economist)

America is thought of as a prime example of the free market system that is supposed to aim at enhancing efficiency. Meanwhile, there is severe backlash from growing income and wealth inequality due in part to ‘winner takes it all.’


Using the microeconomic perspective, address the following:

What has led to the success of the U.S. economy?
Why do you think the U.S. fell behind in some areas?
What do you think about economic efficiency vs. equality in America and what needs to be done to improve the situation?

You can take examples or case study to address your points better.


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– Format: Free style

– Submit file (in pdf. or Word) to the designated ‘Assignments’ slot (‘Term Paper’)

– Length: 4 – 6 pages (excluding cover and reference pages)

– Use 12 point ‘Times New Roman’ font, double-spaced

– Attach references and sources, if necessary. For more information on American Inequality check out:


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