| Despite its wealth and dynamic market economy, advanced democratic political and civic institutions, and a diverse and vibrant culture, the United States suffers from wide-spread poverty and socio-economic inequalities, much more so than other advanced liberal democracies around the world. A certain degree of disparities of income, wealth, status, and power are inherent in a free market economic system. But the problem of the gaps in means and influence between the social classes in America has grown more pronounced since the 1970s and has been exacerbated in the modern era of globalization; causing many Americans to miss out on the American dream of upward social mobility.;This thesis will explore the cultural and political factors that foster economic hardship and class differences in the United States and undermine efforts to create a more egalitarian society. Certain unique cultural traits imbedded in the American national character, such as the values of individualism and laissez-faire endorsed by the "American creed" and the tendency of poor and moderate-income citizens to be mistrustful of government, confused and ill-informed about important issues, and to disengage from politics, all promote indifference towards the poor and ambivalence about redistributive social policy while serving to uphold the political status quo in Washington. The institutionalization of interest groups in the American political system also impedes attempts at reform because the vast numbers of special interest lobbies tie up the legislative process, sap the federal government's limited resources, and restrict government's ability to solve serious national problems. Further, the imbalance in representation in the policy process between the wealthy and the less privileged in society hinders efforts to reduce poverty and inequality because in an electoral system that depends on private funding of campaigns, the policy preferences of the wealthy donor elite take precedence over the concerns of ordinary citizens.;The paper will also analyze the economic, social, psychological, and political consequences of growing poverty and socio-economic inequalities in the United States, and will explore some policy alternatives recommended by scholars in the field to alleviate these problems. I conclude that in order to democratize the American political process and make possible economic and social renewal, the most important reform proposed will be a radical change to the system of campaign finance, from the current privately-funded arrangement to a plan of public financing. |
