In 2005, 37 million people, approximately 13% of the total population in America, lived below the poverty line, as defined by the Census Bureau. Economic theory suggests that human capital that is the education, work experience, training, and health of the workforce are considered as fundamental drivers of economic growth. Research shows that poverty can negatively affect economic growth by affecting rates of crime and creating social unrest. How do other industrialized nations compare relative to US? How is it that there are ample funds to run space programs and not reduce poverty to single digits? Imagine you are the President of the United States, how would you tackle the issue on poverty? What kinds of policies and reforms would you want to see passed? How would you reallocate funding from other government-financed programs to poverty reduction? According to a recent Wall St. Journal report, the richest Americans’ share of national income has hit a postwar record, surpassing the highs reached in the 1990s bull market, with the wealthiest 1% of Americans earning 21.2% of all income in 2005. The bottom 50% earned 12.8% of all income. What factors explain the rising income inequality? How does US compare in income inequality with the other industrialized countries? Which country in the world has the best income distribution? As a society, can we justify the NBA players to earn the kind of income that they do? Is it fair for some Americans (including single moms) to hold 2 jobs to make the ends meet while the top 1% holds 20% of all income in America? What policy tools would you use to address income inequality in America? Would you want to live in a society that mirrors values of your own personal faith? If so, what steps in economic policy would you take to achieve that end. US Income Inequality – US Census Bureau