The inequality in the USA is growing with the passage of the time and is getting worse. The gap between the poor and the rich is widening. Due to this inequality the economy has become weak due to restricted growth. The inequality I prevailing in the country due to fiscal deficit, current account deficit, ever growing inequality and dysfunction at political level. According to the article and the video, this might however affect the growth of the economy; growth of the economy might become fragile. It may also slow down the process of job creation; people may face difficulties in finding suitable jobs in the coming years.
The inequality may create a political economy that further decreases the chances of stabilizing the economy. It may pave the way to political uncertainty and instability and cause chaos and destruction of the economy in the future. According to the video, the United States may look more like a developing country due to rising inequality in the country. The social cost of inequality in America and other societies are trust, life expectancy, mental illness, educational achievement, infant mortality, teenage births, incarceration rates and homicides. The inequality is however positively related to the substantive health measures as well as to social interactions.
Inequality plays its role in making a person sick physically and emotionally vulnerable that paves the way to higher alcoholism, homicide, mental diseases and illnesses. Children are predominantly vulnerable to the inequality impacts. More children dropouts of the high school have been observed in the United States and other countries such as Mozambique, South Africa, Brazil and Libya. Trust level among people is also low in the unequal U.S. states. Issues such as inferiority, superiority, obesity, distrust, and competition for status all arise just because of inequality. Thus, in nut shell more inequality means more problems, so the countries should try to avoid inequality in order to ensure smooth functioning of society.