Social and Economic Inequalities in the USA

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Social and Economic Inequalities

• An inequality is an example of where people are NOT EQUAL

• SOCIAL inequality is about how people are not equal in SOCIETY

• ECONOMIC inequality is more to do with how people are not equal FINANCIALLY

• The two are however very much linked…there are many social inequalities in housing for example with some people in the US living in fancy houses and others in poor slums, but it is perhaps the result of economic inequalities – i.e. the amount of money a person makes affects their ability to live in a nice home/area.

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Social and Economic Inequality in the USA

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Crime

Housing

Income

Poverty

Health

Education

Employment

One way to remember information is through the use of a mnemonic. This is were the first letter of a group of words are strung together to make a new ‘reminder’ word.

                                                                                                                                                                                                                                                                                                                                    

                                                              

In the exam…

• Questions in the exam will either ask you about:

1.The extent of social and economic inequality

2.Government responses to social and economic inequality

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Possible Essays…

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Extent of social and Economic Inequalities

Government responses to Social and Economic Inequalities

• To what extent do individuals or groups in a world power you have studied experience social and economic inequality.

• To what extent have minority groups made social and economic progress in the world power you have studied?

• Analyse policies implemented by government to solve a socio-economic issue in a world power you have studied.

• Evaluate the effectiveness of a world power you have studied in tackling social and economic issues.

• Analyse the government policies to tackle social and economic inequalities in a world power you have studied.

• Evaluate the effectiveness of government policies to reduce social and economic inequalities in the world power you have studied.

Income and Employment Inequalities (poverty)

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Background Knowledge

• The United States is a capitalist country.

• Capitalism is an economic system in which trade, industries, and the means of production are largely or entirely privately owned and operated for profit.

• The USA is a country with a strong capitalist ethic and favours minimal state intervention – individualist rather than collectivist.

• The opportunity to become rich is part of the American Dream. Many Americans believe in the American Dream and there are thousands of people who have achieved it.

• However, for every ‘winner’ there are many more ‘losers’.

• In terms of income, it seems that minorities suffer inequality – especially African Americans and Hispanic Americans.

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Unemployment

• At the end of 2014, 5.5% of Americans were unemployed, but the figures for different ethnic groups vary greatly.

• Today, around 4.6% of Whites and 4.6% of Asian Americans are unemployed compared to 10.5% of African Americans – so blacks are twice as likely to be unemployed as whites.

• 6.5% of Hispanics are unemployed which again shows that minorities are more likely to be unemployed.

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Income• Compared to other developed countries, the USA is a very

unequal society. According to the UN , the Gini coefficient (which gives a measure of wealth or income inequality within a country) for the USA is 40.8 and rising (UK 36).

• What this means is that the richest people in the USA have, on average, a far greater share of the total income or wealth than the poorest people.

• Ethnicity is crucial when looking at social and economic inequalities in the USA.

• White and Asian Americans are most likely to have higher incomes and be employed.

• African Americans and Hispanic Americans are least likely to have high incomes and be employed.

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Income

• In 2012, among the ethnic groups, Asian households had the highest average income which stood at $68,636. The average income for White households was $57,009, and it was $33,321 for Black households. For Hispanic households the average income was $39,005.

• In other words, on average, Asian Americans earn more than twice as much as black Americans.

• Also, on average black Americans earn about 58% of what white Americans earn.

• Clearly, there is extreme economic inequality for black and Hispanic Americans compared to white and Asian Americans.

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Poverty

• Poverty rates in the USA are high for a developed country.

• 15% of the US population were classed as living in poverty in 2012.

• The table on the next slide shows the extent of poverty for different ethnic groups…

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Poverty

• So from the table on the last slide, in 2012…

• 15% of Americans lived in poverty

• 27.2% of African Americans in poverty

• 25.6% of Hispanic Americans in poverty

• 9.7% of non-Hispanic whites in poverty

• So, in 2012 blacks were almost 3 times as likely to be living in poverty compared to whites.

Poverty

The official measure of poverty is the Federal Poverty Line.

•Millions of Americans in 2015 live below the poverty line.

•The National Centre in Poverty reported that 13 million American children were living in families with incomes below the official federal level.

•Black and Hispanic Americans are more likely to be living in poverty therefore experience more social and economic inequality compared to Asian and White Americans.

African-American Poverty

•Reasons for the high levels of poverty are different. Black Americans have suffered systematic and long-term discrimination. Many have also fallen victim to the poverty cycle.

•The level of black poverty has steadily decreased over the years. However, black Americans do still experience greater inequality than white Americans or any other ethnic group.

•This has resulted in a Black “underclass” living in ghettos where they find it more difficult to get a proper education, employment, health and even justice in the courts.

•This has led to a rise in crime and substance abuse. African Americans are the biggest group reliant on welfare.

Black Middle Class

•However, there has been a rise in a black middle class as there has been better access to education.

•Today many black Americans are moving into better homes and housing barriers are gradually disappearing - no more ‘white flight’.

•Many have integrated into white neighbourhoods and there has also been a development of black middle class neighbourhoods.

•For example, Atlanta and Los Angeles have thriving black middle class areas.

Case Study: Black Middle Class

•The Queens district of New York is home to black middle class families whose average income was higher than that of white families in the same area. This was largely due to the growth of two-parent families.

•Today middle-class black Americans are well established as a separate community and do not have to live side by side with lower income black Americans - those that are left behind in the ghetto, left to deal with drugs, violence and crime.

Hispanic Poverty

•The reasons for poverty amongst Hispanics are different. Mainly due to immigration from South and Central America.

•Poverty levels are not equally distributed amongst the Hispanic groups. Mexicans and Puerto Ricans have higher poverty levels than Cubans.

•Mexicans and Puerto Ricans represent the economic migrants who are in search of the American Dream, whereas Cubans have a strong tradition of being successful in business.

Video Clips…

• https://www.youtube.com/watch?v=wNNBjqdKZRQ – wealth inequality stats

• http://inequality.org/tax-rich-animated-fairy-tale/ - animation about wealth inequality in USA

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Park Avenue: Money, Power and the American Dream

• http://inequality.org/park-avenue-money-power-american-dream/

Examples of rich and poor neighbourhoods in the USA?• Compton in Los Angeles, California (poor)• Harlem in New York City, New York (poor)• Newport Beach, Orange County, California (rich)• The Hamptons, Long Island, NY (rich)• Upper East Side of Manhattan, NYC, NY (rich)

• http://www.blackenterprise.com/news/the-10-most-dangerous-neighborhoods-america/

Educational Inequalities

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Education• There are huge inequalities in education in the USA.

• These are largely because of income and this again means that minorities are worst affected.

• There is a huge problem in education in the USA whereby in many cases, schools in more affluent areas gain more funding than schools in poorer areas. This is sometimes called a “Funding Gap”.

• This means that young people from poorer areas do not get as good an education, and this affects black and Hispanic families the most.

• Most educational funding comes from state and local governments with only 10% of funding coming from the federal government.

• A 2004 report found that there were funding gaps in 36 of the 50 states.

• This means that most states spend thousands of dollars more on pupils in richer areas compared to poorer areas.

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Education• Teachers in the USA are paid

based on their qualifications, years experience, extra curricular activities etc. This means that the best qualified and most experienced teachers are paid more.

• Since the best teachers are paid more, schools with less funding cannot afford to employ them, and this in part explains the inequalities in the US education system.

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Education

In 2010 in terms of graduating from high school or achieving a Bachelor’s degree:

•Hispanics (42%) and Blacks (58%) have the least number of high school graduates.

•Whites (81%) have the most high school graduates, with Asians (32%) having the highest percentage of Bachelor degrees.

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Education

Causes of educational inequality

•In an equal world there would be no difference in educational attainment between the different minority ethnic groups. However, statistics show that Whites and Asians consistently outperform Hispanics and Blacks in terms of educational attainment. Why?

1.Impact of poor neighbourhoods

•A significant number of blacks and Hispanics live in poor areas. These areas are characterised by poor housing, unemployment, dysfunctional families, crime and drugs. Children brought up in these areas are less likely to value education or go to school hence educational attainment levels are low.

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Education

2. ‘Poor Schools’ attended by many B+H have:

•Problems attracting and retaining suitably qualified teachers and so classes go untaught.

•A lack resources for equipment such as computers. School buildings may require extensive repairs. Often schools with the best results get the most funding.

•More disruptive and disaffected students making it harder for pupils to learn.

•Also, many Americans with money send their children to expensive but high attaining private schools.

•Don’t stereotype: Within the Hispanic group Cuban Americans, who tend to be wealthier, often do better than Mexican or Puerto Ricans in terms of educational success.

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Education

• Graduating High School with a diploma is seen as a crucial step in beating the poverty trap. A college degree is now a prerequisite for a well paid job.

• Drop out rates for Blacks and Hispanics do tend to be higher.

Hispanics and Education

• Many say that they need to support their family.

• Limited English skills.

• Cannot afford to go to school.

• High illiteracy rates.

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EducationAsian American educational success

•Unlike Blacks and Hispanics, most Asian Americans do well in education. Evidence shows that Asians tend to have higher educational attainment than the White majority, although this hides the fact that some Asian groups do better than others.

•For example, Japanese and Korean Americans, where education is valued, families stable and incomes high, do best. These groups can afford to send their children to the best schools where they often excel (Asians make up 5% of US population but 10% of undergraduates.)

•On the other hand, many Vietnamese and Cambodians, who are on average poorer than other Asian American groups, do very poorly in terms of education.

• Black and Hispanic children are far more likely to attend poor schools.

• Children from low-income families are 6 times more likely to drop out of school compared to children from high-income families.

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Education

Poor education – link to poor health?

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Health Inequalities

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Health• The system of health care in the US

is very different from the UK.

• In the USA national health care provision is very limited.

• There are some programmes which provide limited healthcare to older people and poorer people.

• However, most Americans are expected to pay for their own health care through private medical insurance.

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Health• Most Americans (58%) receive their private health

insurance through their employer. Companies like BlueCross BlueShield are among the leading private health care providers.

• US Government health programmes cover around 28% of the population and include:

• Medicare – Mostly for people over 65 years of age and administered by Federal Government.

• Medicaid – Covers people on low incomes including children, pregnant women and the disabled. Administered by States.

• According to the United States Census Bureau, in 2012 there were 48.0 million people in the US (15.4% of the population) who were without health insurance.

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Problems with the US health care system (pre-2010)

The US health care system works well for those with full- coverage private medical insurance. Facilities and treatment can be world class, public satisfaction rates are high and waiting times are virtually non-existent. However…

•The USA spends the most money on health care in the world ($2.26 trillion; 15.2% GDP) but outcomes (life expectancy, infant mortality, etc.) are poorer than many other developed countries.

•There is a great deal of duplication/inefficiency in the US health care system as companies compete for business. Also, bureaucracy (paper work) costs are high.

•The system is hugely unfair. Around 1.5 million Americans lose their homes every year due to unaffordable medical costs.

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Health

Impact of US health care system on minority groups

•As Blacks and Hispanics are more likely to have lower incomes or to be unemployed, they are, as a result, less likely to have private medical insurance. They are also more likely to depend on Medicaid or be uninsured. • 50% of Blacks and 42% of

Hispanics have private health insurance compared to 74% of Whites.

• 21% of Blacks and 32% of Hispanics were uninsured compared to only 13% of Whites and 14% of Asians.

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Health

Overall Health

•Ethnic minorities suffer worse health compared to whites. Black women have the highest death rates from heart disease, lung cancer and strokes. Hispanics are more likely to be employed in high-risk occupations.

• Infant mortality is twice as high for Black infants as it is for white infants.

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Health• Selected health statistics by ethnic group

Life expectancy (years) 2010

Whites Blacks Hispanics Asians Native Amer.

78.9 74.6 82.8 86.5 76.9

Infant mortality rates (per 1,000 births) 2009

Whites Blacks Hispanics Asians Native Amer.

5.76 13.63 6.01 4.89 8.06

• In basic terms, infant mortality rates for black and Hispanic Americans are higher than for white Americans which suggests that whites (and Asians) have better health.

Hispanic mortality paradox

• If Hispanic Americans are more disadvantaged and experience health inequality – why do they live longer than whites? The short answer is we don’t know!

• Hispanic culture may have some protective effect. Tight-knit families and immigrant communities offer crucial support to people battling illnesses.

• Hispanics, especially recent immigrants, also tend to behave in more healthy ways, smoking and drinking less.

• However, some suggest that the Hispanic mortality paradox is mostly a result of migration and miscounting.

• Others say that immigrants are in better physical condition, - the “healthy migrant” hypothesis.

• Others argue that sick Hispanic immigrants tend to return to their home countries, so they don’t show up in the statistics. This is the “salmon bias” hypothesis.

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Housing and Crime Inequalities

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Housing• Although many Americans live in high quality inner city

housing or edge of city suburbs, there are also millions of Americans who live in run-down inner city areas or ghettos.

• Features of middle class edge of city suburbs high quality housing areas include: a crime-free neighbourhood, parks and open spaces and good quality schools. Sometimes these areas when they are mainly populated by white people are called ‘vanilla suburbs’ or ‘ebony suburbs for middle class Black suburbs.

• People living in ghetto housing experience a life a world away from those in middle class suburbs. Ghetto housing areas are affected by crime, gangs, poor schools and a lack of shops and facilities.

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HousingOne reason for US housing inequalities

•Housing quality is linked to income. In general, the higher the income the better the housing.

•Income is linked to education. Again, in general, the better the educational attainment the better the income.

•Educational success depends on a number of factors but the schools with the best educational facilities and exam success tend to be in the wealthiest neighbourhoods.

•As a greater percentage of people from minority groups are born in poorer areas, they are more likely to remain poor in adult life.

•There is a ‘cycle of poverty’ which makes it very hard for poorer Americans, often minorities, to improve themselves.

•Poor areas – Compton in Los Angeles, California, Harlem in New York City, New York.

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Crime and Justice

If a person is in the US is poor and especially if black , they are, proportionately, more likely to:

•be a victim of a crime including murder, robbery or theft

•commit crime

•be arrested for a crime

•be found guilty of a crime

•be punished more severely for committing a crime including being sentenced to death or life imprisonment

•40% of prison inmates in the USA are black…21% are Hispanic.

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Remember, US population is 63% white, 16.9% Hispanic (Latino), 13.1% black

Government Responses to Social and Economic

Inequalities

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Government policies we will look at…

1. Affirmative Action2. Welfare to Work3. Temporary Assistance to Needy Families

(TANF)4. No Child Left Behind (NCLB)5. American Recovery and Reinvestment Act

(ARRA)6. Minimum Wage7. Obamacare

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Affirmative Action

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Affirmative Action

What is meant by the term Affirmative Action (A.A.)?

A.A. or ‘positive discrimination’ is the name given to a set of programs which aim to reduce inequality in education and employment.Originally introduced to help Black Americans overcome historical disadvantage, A.A. programs today aim to help a range of disadvantaged Americans, including women and with those with disabilities, to access better education and employment.

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How Does Affirmative Action Operate?

In education A.A. operates through:

•Outreach Programmes – extra tuition is provided for those students (often Black or Hispanic) from disadvantaged backgrounds.

•Recruitment and Retention Programmes – funding is provided to assist disadvantaged groups with certain types of career e.g. in science or business management.

•Universities – would aim to ensure their student intake reflected wider US society i.e. campuses/departments would aim to include minority groups, both genders, disabled students, etc.

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How Does Affirmative Action Operate?

• Laws have been passed which aim to ensure companies with more than 50 employees do not practice discrimination in hiring or promoting people from disadvantaged groups.

• The Federal and some State Governments will award, where appropriate, contracts to companies that are minority owned or employ large numbers of people from disadvantaged groups.

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Arguments for Affirmative Action:

• Minority groups, and others, need A.A. to overcome social and economic disadvantage and discrimination. A.A. creates a ‘level playing field for all Americans’.

•A.A. has helped to create a fairer US society. For example, 50% of Black Americans are middle class and many other groups have seen rises in their standard of living.

Arguments Against Affirmative Action:

•A.A. is opposed by some Whites because they see it as ‘reverse discrimination’. For example, in 2003, A.A. was challenged in the Supreme Court (SC) when a white student claimed he was discriminated against for a place at Michigan University. The SC disagreed stating that race could be taken into account when allocating university places although they also found that having a ‘quota’ for one group was ‘unconstitutional’.

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Arguments Against Affirmative Action continued:

• Some critics of A.A. argue that to ensure A.A. is respected, some companies are forced to promote minorities (and others) who are not necessarily the most able people and this is bad for the US economy.

• A.A. is also opposed by some Blacks and others because they believe A.A. undermines their success i.e. Blacks and others only got into university because they were Black.

Welfare to Work

Welfare to Work

• The main US Government strategy to reduce poverty is called ‘Welfare to Work’. Under this strategy, the poor are expected to ‘work their way out of poverty’.

• ‘Welfare to Work operates by the Federal and State Governments tying support to finding work.

• Welfare support such as Medicaid health insurance, child care, food stamps and Earned Income Tax Credit (EITC is worth up $2853 per child) is only available to those actively seeking employment or who have taken up employment.

Success/Failure of ‘Welfare to Work’

• Reaction to Welfare to Work has been mixed. Supporters of Welfare to Work claim that more people have been ‘encouraged’ into work and this has increased the incomes of the poorest (see graph below right). It has also reduced the cost of the welfare budget (50 million Americans will claim $614bn in welfare payments 2008).• Opponents of Welfare to Work claim that is has forced many people to work for very low wages (‘burger flipping jobs’) and that it has not reduced inequality or poverty levels in the USA.

Temporary Assistance to Needy Families (TANF)

Temporary Assistance to Needy Families (TANF)

•The main policy to reduce child poverty in the US is called Temporary Assistance for Needy Families. This program, which is Federally financed but State run, is aimed at getting as many single parents back to work as possible.

•Again, welfare benefits are linked to finding or looking for work. TANF is only available for a maximum of five years.

Success/Failure of TANF

•Success - Since TANF was introduced in 1996, the child poverty rate among single parents has fallen. Clearly, the ‘push’ provided by TANF to get single parents into work has been a success. Overall, less families today receive TANF as eligibility rules have tightened.

•Failure - However, some commentators argue that the fall in US child poverty rates is because of an improvement in the US economy and not because of TANF. It is also pointed out that the level of child poverty in the US is one of the highest in the developed world.

No Child Left Behind

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No Child Left Behind (NCLB)

•When Bush became president in 2000, he believed that too many public schools were failing their students. •In response, the then Republican-led Congress passed the No Child Left Behind Act 2001. •This Act requires schools within each state to reach a certain standard in basic skills if the state is to continue receive federal funding for education. •Bush hoped that by setting high standards in education and better tracking students progress, standards would be forced up.•Through this act, the federal government significantly increased spending on education.

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Success/Failure of NCLB

There is fierce debate over the success of NCLB.

Supporters of the Act claim:• reading scores and scores in maths have improved at their fastest rate for many years.• reading and maths scores for Blacks and Hispanic children are at an all-time high.• the gap between Black/Hispanic children and White children’s scores in reading and maths are at the lowest ever levels.

•But critics of the Act claim:• tests have become easier to inflate results. This is possible as the States draw up their own tests.• reading and maths scores have improved as schools ‘manipulate results’ to retain funding.• NCLB has narrowed the curriculum as States focus resources on reading and maths.

The American Recovery and Reinvestment ACT

(ARRA)

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American Recovery and Reinvestment

Act 2009 (ARRA)• The American Recovery and Reinvestment Act also known simply as “the Recovery Act” or “the Stimulus” is an economic stimulus package enacted by Congress in 2009.

• The Act was based largely on proposals made by President Obama and was intended to provide a stimulus to the US economy in the wake of the economic downtown.

• The measures are worth $787 billion.

• The main purpose of the Act was to boost the economy following the recession by saving and creating jobs.

• The Act also included tax cuts, expansion of unemployment benefits and other social welfare provisions, and an increase in domestic spending on education and health care.

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American Recovery and Reinvestment

Act 2009 (ARRA)• Reaction: Economists in the US are divided over the ARRA. Some agree a

stimulus package was needed to help US economy. Others feel ARRA will damage US economy as US national debt soars.

• Success – When Obama came to office, 20,000 Americans were losing their jobs every day. Since the Act, hundreds of thousands of jobs have been created and the country is edging closer to emerging from recession. This has benefited the poorest Americans, many of whom are black or Hispanic.

• Failure – The recession officially ended in late 2009, but as of February 2015, unemployment rates are still higher than they were before the recession hit in 2007. Unemployment in 2005 was around 5% and it is currently at 5.5%. Arguably this means that although there has been a recovery it has taken too long and many Americans, especially black and Hispanic Americans, are still struggling and facing inequalities in income and employment.

The Minimum Wage

The Minimum Wage• President Obama is a supporter of increasing the

minimum wage• He favoured raising it to $9.50 an hour by 2011• In his State of the Union speech in 2012, he hinted at

proposing legislation to raise minimum wage rate to $9.00 per hour sometime during his next term.

• In January 2014 he signed an executive order raising the minimum wage for federal employees to $10.10 per hour and began garnering support for a bill to enact this change nationally.

• In April 2014, the United States Senate debated the Minimum Wage Fairness Act

• The bill would increase the federal minimum wage for employees to $10.10 per hour over the course of a two year period.

The Minimum Wage

• The bill was strongly supported by President Barack Obama and many of the Democratic Senators, but strongly opposed by Republicans in the Senate and House.

• Obama strongly supported increasing the minimum wage, giving speeches about it urging Congress to take action.

• Obama argued that "if you pay people well, there's more money in everybody's pockets, and everybody does better.”

Current Minimum Wage• As of July 2009, the federal government mandates a nationwide

minimum wage level of $7.25 per hour• Effective January 1, 2015 there were 29 states with a minimum

wage higher than the federal minimum• The federal minimum wage peaked at about $10 in 1968, as

measured in 2014 inflation adjusted dollars• In March 2014, Connecticut passed legislation to raise the

minimum wage from $8.70 to $10.10 by 2017, the first state to address President Obama's call for an increase in the minimum wage.

• In June 2014, the City Council of Seattle, Washington passed a local ordinance to increase the minimum wage of the city to $15 an hour, giving the city the highest minimum wage in the United States, which will be phased in over seven years, to be fully implemented by 2021.

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US Minimum Wage Compared to other Developed countries

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The Minimum WageArguments for Increasing

Minimum Wage (Democrats)Arguments against

increasing Minimum Wage (Republicans)

Give Americans a fair wage – reduce poverty

Unaffordable – US debt already too high

Encourage people to work rather than claim benefits

Will harm small businesses – can’t afford to pay workers more

Stimulate the economy and improve productivity

Will have no positive effect on the US economy

The Minimum Wage• The pictures on the right

are of protesters in the US city of Milwaukee in 2013

• Fast-food workers staged an unprecedented one-day walkout in cities across the USA.

• Hundreds of workers demanded a minimum wage of $15 an hour and the right to form trade unions

• Many fast food workers have seen their wages cut since the recession but companies like McDonald’s continue to make huge profits

The Minimum Wage• Success – Obama’s proposals to raise the minimum

wage have been successful to an extent. Federal employees now earn more per hour and therefore more are being lifted out of poverty. In addition, some states and cities have passed legislation to increase the minimum wage (Connecticut, Seattle).

• Failure – However, many states have not increased the minimum wage meaning that many Americans are still surviving on low wages and relying on welfare. Recently, Obama’s hopes of gaining support for a big increase in the minimum wage have been restricted by the Republican controlled Congress. The US minimum wage remains lower than many other developed nations including the UK, Spain, France and Australia. This means that many people, particularly minorities, continue to live in poverty.

Responses to Health Inequalities - Obamacare

• The Patient Protection and Affordable Care Act 2010 was introduced to increase the quality and affordability of health insurance, lower the uninsured rate and reduce the costs of healthcare for individuals

• The law also requires insurance companies to cover all applicants within new minimum standards and offer the same rates regardless of pre-existing conditions or sex.

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Obamacare• Success - Over 7 million

Americans have taken advantage of the new system, exceeding expectations

• Obama hopes that it will eventually lead to all Americans having healthcare coverage

• Failure - Critics argue that it is irresponsible, calling it “socialised medicine”

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Obamacare

• Success - Multiple surveys indicate the number of uninsured Americans has fallen due to expanded Medicaid eligibility and health insurance exchanges established due to Obamacare.

• In July 2014, an additional 9.5 million people aged 19-64 had obtained health insurance, roughly 5% of the working-aged population.

• The uninsured rate among adults 18 and over fell from 18.0% in 2013 to 13.4% by 2014.

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Arguments for (Democrats)

Arguments against (Republicans, Tea Party)

Tens of millions of uninsured will get access to affordable quality health insurance

Encourages Americans to be lazy – don’t have to pay for own coverage

Reduces health inequalities – income no longer as important in gaining access to healthcare

Taxes will have to rise, especially for wealthier Americans

You can't be dropped from coverage when you get sick or make an honest mistake on your application. You also can't be denied coverage or treatment for being sick or charged more for being sick. You can't be charged more for being a woman either.

Insurance companies must cover sick people and this increases the cost of everyone’s insurance.

Obamacare is projected to cost $1.1 trillion over the next ten years

Obamacare helps to curb the growth in healthcare spending.

Focuses more on making sure people are covered than it does on addressing the cost of care in the first place.

Obamacare• Failure - On September

12th 2009, the Tea Party movement (a right-wing group associated with the Republican Party) organised a major protest against “Big Government” and Obama’s proposals, notably on healthcare reform.

• Over 75,000 Americans protested against various issues including government spending and high taxes.

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Overall…how successful have the Government

been?• Various government policies have had limited success in tackling inequalities.

• More people have health insurance as a result of Obamacare for example.

• However, the USA today is more unequal than it has ever been.• Blacks and Hispanics continue to suffer in terms of income,

employment, healthcare and education.• Today, the richest 1% of Americans own 40% of the wealth of

the country.• Arguably, government policies in recent years have done

nothing to reverse this overall trend. Perhaps social and economic inequalities are getting worse.

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