Answer to Question 1
Moneyin the form of both income and wealth is very unevenly distributed in the
United States. Money is essential for acquiring goods and services.
People without money cannot purchase food, shelter, clothing, medical care, legal aid,
education, and the other things they need or desire. Median household income varies
widely from one state to another. Among the prosperous nations, the United States is
number one in inequality of income distribution. In regard to income inequality in the
United States, sociologist Dennis Gilbert identified that in 2011, the wealthiest 20
percent of households received more than 50 percent of the total income, while the
poorest 20 percent of households received slightly more than 3 percent of all income.
Income distribution varies by race/ethnicity as well as class.
Answer to Question 2
Part of the reason that the cost of fee-for-service health care in the United States
escalated rapidly beginning in the 1960s was the expansion of private medical
insurance programs at that time. Third-party providers began picking up large portions
of doctor and hospital bills for insured patients. With third-party fee-for-service
payment, patients pay premiums into a fund that in turn pays doctors and hospitals for
each treatment the patient receives. Critics argue that third-party fee-for-service is the
main reason for medical inflation because it gives doctors and hospitals an incentive to
increase medical services. Patients have no incentive to limit their visits to doctors or
hospitals because they have already paid their premiums and feel entitled to medical
care.
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