Income inequality occurs when income is unevenly distributed in a country. This inequality has reached staggering heights across the world. Even in what we consider developed countries, this disparity is only growing. The causes of income equality can range from immigration to a country's policies and policies. However, some critics of income inequality will argue that it will always be present and is necessary to stimulate growth. However, the problem is not only that the gap between poor and rich is widening, but also that income inequality causes devastating market and government failures. We take the case of the United States in particular. The United States is the world's leading power and hegemon, and it also has the highest GDP and GDP per capita in the world. However, in recent years, the gap between the rich and the poor has widened at a rapid pace. This prevalence of income inequality in a free market society like the United States indicates that inequality is a direct result of market or government failure. In a free market, it is believed that individuals have equal opportunities to succeed, but due to poor allocation of resources in a market economy, this is not possible. The resources I am referring to here are those that are necessary for a person to escape poverty. and earn a higher income. This includes merit and public goods that individuals with higher incomes can afford and indulge in, while people with lower incomes or those suffering from poverty rely on certain state endowments, such as health care, education and access to job opportunities and professional networks. It is important for a society that we take care of these market failures, not only to help reduce income inequality... middle of paper ...... vitality. Additionally, the bill could potentially widen the income inequality gap even further. For example, students who cannot afford college but whose parents earn too much money to qualify for federal aid will still be forced to take out private loans to finance their education. “These loans can total between $50,000 and $60,000 by the time a student graduates, even if they attend a public university” (The Student Loan, 2012). This in turn will lead students to make choices based on the cost of higher education rather than their own, meaning fewer skilled workers and individuals financing U.S. markets and more income inequality. Finally, while the bill reduced the cost of higher education, it does nothing to completely eliminate that cost and is unfortunately not really feasible since it was rejected by the Education and of labor..