However, nowadays most people are aware of the one percent, even though they still don't know exactly who they are. The one percent are those who earn most income in the United States. CNBS News states that "a single filer who makes $389,000 or more in 2011 is in the top 1 percentile " (2012). Those people have the most expensive houses, better education, and a healthier lifestyle. Because of this huge gap, one of the major problems facing people today is income inequality. As we look at today's statistics, we can see that the United States has the most unequal distribution of income. For the past decade, people's incomes have been changing for the upper class as well as for the lower class. Unfortunately for lower class it began to fall down, while for the rich it began to rise. .
Paragraph #2: Adams Smith (The Wealth of Nations).
There are many factors which caused the income inequality in today's society. However, the main reason that income inequality starts can be traced back to Adam Smith and the division of labor. In his famous book, The Wealth of Nations, Adam Smith described the free market system as a "self-regulating mechanism ", which increases society's wealth and happiness. Smith argued that society is not at its most productive when ruled by the government; he believed that in order for markets to raise its wealth, a free trade environment should be made available. If people look for just themselves, they would reach a balance that was not just comfortable but also useful, in which the economy was fully efficient. Adam Smith called this system, "laissez-faire " which means leave alone and let the system regulate itself. For example, if one person decided to be a baker, another person can decided to be a business owner; one person might choose to sell his land where as another to farm it. Smith argued, but all of these private decisions, made by rational, self-interested individuals combine to produce a healthy, growing economy.