Government Revenue and Expenditure Impact on U.S. Income Inequality vs Europe and Asia

This paper examines income inequality in the United States compared to Europe and Asia using a comparative economic model that incorporates real GDP, government expenditure, population growth, and trade openness as a percentage of GDP. By analyzing how these macroeconomic factors relate to income outcomes across countries, the study aims to highlight structural and policy-related differences that may help explain observed disparities in income inequality between the two economies. The model provides a framework for understanding how economic growth, public spending priorities, demographic trends, and integration into global trade can influence income distribution. The findings contribute to a broader discussion of how national economic conditions and policy environments shape labor market outcomes in advanced economies.