America is one of the richest nations in the world, with higher inequality than other industrialized countries. Inequalities exist in income, wealth, power and education. In the United States, people who are legally and socially poor tend to remain in a cycle of life, not always by choice, but because they have fewer opportunities, education, and tools to succeed. The poor class has a much larger income gap than the upper class, the American dream is shrinking through opportunity and is reflected in the statistics. Inequality exists and is high in America because of the amount of income and wealth distributed by those in power. In America, the distribution of income is very unequal and the value of a person's wealth is based on their income minus their debts. “In 2007, the richest 1% of households (the upper class) owned 34.6% of all private wealth, and the top 19% (the executive, professional, and small business stratum) held 50.5%. %, meaning that only 20% of the population owned a remarkable 85%, leaving only 15% of the wealth for the poorest 80% (wage workers)” (Domhoff, 2011). On the contrary, the poor do not progress and the rich get more. Americans are judged and placed into class categories based on their property ownership, which translates to wealth. Americans' social class is often associated with their assets and wealth. “People seek to own property, have high incomes, have interesting and secure jobs, enjoy the best travel and leisure, and live long and healthy lives” (Domhoff, 2011). Power shows how these “values” are not equally distributed in American society. Huge gains for the wealthy include reduced capital gains and dividends and redistribution of income as tax rates fall for a tiny percentage of Americans. Taxes directly affect Americans' wealth and income every year. “For most Americans, the word “poverty” suggests destitution: an inability to provide a family with nutritious food, clothing, and reasonable housing” (Rector, 2007). Poverty can be socially defined as severe deprivation of education, food, clean water, sanitation and health care, regardless of the individual's income. The U.S. Department of Health and Human Services regularly updates poverty guidelines and, depending on the state you live in, falls within the guideline range..