What is wealth inequality? “It is the difference between individuals or populations in the distribution of assets, wealth or income.” [1] In sociology, the term is social stratification and refers to "a system of structured social inequality" [2] where inequality may relate to power, resources, social status/class, or perceived value. In the United States, where there is a class system (as opposed to the caste or inheritance system), your place in the class system may be determined by your personal achievements. However, the economic and social class an individual is born into is an important indicator of the class they will end up in as an adult. [3] What are the effects of this wealth inequality in the United States and what are the causes, as well as some possible solutions and their ramifications will be discussed and answered below. There has always been a wealth gap between the richest and poorest in society. However, over the past decade, the wealth gap between the richest and poorest citizens in the United States has widened rapidly. In the 1970s and 1980s, the rate of growth of wealth and income of the poor and the rich was similar. However, between 2009 and 2012, the income of the richest 1% increased by 31%, while for the poorest 20%, their income actually fell and for the vast majority of Americans, the average annual income only increased by 0.4% [4]. The question is: is the wealth gap bad? Is a growing or extreme wealth gap unhealthy for the economy and social stability or is it a necessary part of it? Functionalism argues that inequality is important and necessary because it "motivates people to occupy different positions in society that are necessary for the survival of humanity." the whole of society. » [8] The rewards, i.e. wealth, prestige and power, and the resulting wealth gap, are...... middle of paper ..... .y." Bloomberg Business Week. Bloomberg, November 16, 2011. Web. April 17, 2014. Trello, Julia. “Income Inequality: Insights and Solutions from Experts” Finance Online Income Inequality, Solutions from Expert Comments, nd Web, April 16, 2014. Bob, Friedman and Cures. CFED The Inclusive Economy Blog. CFED, March 19, 2013. Web. April 21, 2014. Rugaber, Chistropher S. and Josh Boak. “Excite News – Wealth Gap: A Guide to What It Is, Why It Matters.” Excite News - Wealth Gap: A Guide to What It Is, Why It Matters. Associated Press, January 27, 2011. Web. April 20, 2014. Tankersley, Jim. “Economic mobility has not changed in half a century in America.” Washington Post. The Washington Post, January 23, 2014. Web. April 20, 2014. “Wealth Inequality in the United States.” Wikipedia. Wikimedia Foundation, April 18, 2014. Web. April 19.. 2014.