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Stratification of Wealth The stratification of wealth is the distribution of income, assets, and over all richness. Stratification is the act or instance of stratifying, and wealth is a great quantity of money, valuable possessions, property, or other riches. In America there is an incredible stratification of wealth.

Wealth is becoming more and more stratified in America even between the elite. According to Robert Frank’s book, Richistan, “the economic distance between the poorest Richistani and the richest has more than doubled over the past decade.” (p.9) The lower echelon of the elitists are becoming poorer than ever, despite the fact of becoming wealthier than 95% of America.

In the graph below, which comes from the Panel Study of Income Dynamics, we can see how stratification is becoming worse and worse since 1984. The lowest percentile has become worse, and the highest percentile has become wealthier.

The table can be found here on page 12:

In Robert Frank's book, Richistan: A Journey Through The American Wealth Boom and the Lives Of The New Rich, we can get a clear understanding of the stratification of wealth and why it has continued to grow. Today's "Richistan's" as Frank refers to them as, meaning the upper class, is a new wave. The wealth of the new upper class is not what it used to be as Frank describes in his book. People are flaunting their property more than ever, and not to mention the lower class is sinking further into poverty. This was incredibly noticeable in 2005, in Fort Lauderdale, Florida, during the 46th Annual International Boat Show. Hurricane Wilma had a recent passing through the area doing incredible damage and leaving thousands homeless, not to mention much of them lower class citizens. However, despite the immense destruction and pain taking place, the boat show would still go on. The elites were out and about purchasing mega yachts for millions of dollars, while families sat with nothing in school gymnasiums and classrooms.

Not all upper class persons flaunt their wealth, but many do and wealth is becoming more and more stratified. Although the "New Money" is not the same as "Old Money." Many of the new Richistans hold their wealth in their pockets, while old money is held in assets. In addition the tension between "Old Money" and "New Money" is ever growing while tight circles in such places like Palm Beach are growing ever closer, people like Simon Fireman are creating circles of his own, and the Upper Richistan's don't like it at all. Palm Beach is home to some of the most elite and also the home of the Red Cross Ball. Fireman, who recently ran into heavy legal troubles in the 90's, pledged a Red Cross record of 1 million dollars in 2003. However, to others this was not a pledge of help. Says one Palm Beach Socialite, "Simon Fireman gives to benefit Simon Fireman." However, Fireman insists his givings are pure, even though he became chair of the Red Cross Ball by way of firing recent head, Diana Ecclestone, and after his pledge of a million. According to Ecclestone, "Mr. Fireman's behavior isn't what most people in Palm Beach are willing to tolerate."

This is just one clear example of how stratified wealth can become. Society excepts money to an extent, but than wants to refuse it to another. The United States has the largest wealth disparity of any industrialized nation in the world, and this disparity is growing larger every year. If the richest can not agree with one another despite having all the money that they can handle, how are the lower class citizens supposed to maintain a healthy economy, with such stratified circumstances. Our urban areas continue to decline as the wealthy move out into more prospering areas, and the lower class is left with thousands of abandoned buildings. This outstanding inequality is leading the American economy in the wrong direction, especially considering the state of economic crisis in which we are in today. This gap between lower class to middle, middle to upper, and even upper lower to upper upper must be silenced or else the economy will continue to fall.

References 1)Frank, Robert. Richistan: A Journey Through the American Wealth Boom and the Lives of the New Rich. New York: Crown, 2007. 2)http://ils.unc.edu/dpr/path/socialstrat/