ipl-logo

Economic Inequality Analysis

1053 Words5 Pages
bulb-icon

Recommended: Inequality in society today

In today’s societies the growing gap between rich and poor countrie continues to grow. Nowadays, there are a lot of people that suffer from poverty all over the world, while the rich become richer and richer the the poor become poorer and poorer.
Economic inequality, known as the gap between the rich and the poor, income inequality, or wealth disparity, consists of discrepancy in the income and wealth disribution. In this essay I em going to explore different aspects of the Growing gap between rich and poor countrie and the connection with globalization. The issue of economic inequality is related to the ideas of equity: equality of outcome and equality of opportunity. There …show more content…

Some of the major factors that affect the growing gap between the rich and the poor are the, labor markets policy, racism, technological changes, the culture, lack of proper education, taxes reforms, inequality in wages, also government facilitated initiatives can decrease or increase the inequality and some economists believe that even the globalization contributed to the increasing …show more content…

From the perspective of a poor countrie a threat is the fact that now it is more open to being exploited and controlled by the developed countries. The control can be exercised over some political systems and even social aspects. Poor countries often have to submit because failure to do so could lead to deleterious effects including the withdrawal of financial assistance, FDI and possible trade restrictions through trade embargos. It is notable that even when developing countries receive financial aid from developing countries and international financial organisations, they are not at liberty to spend the finances in the projects that they desire to develop. The projects to be undertaken using the funds are often dictated by the donor countries; most often to promote their own self interests. While the concept of dominance is true, it is a perfect example of the struggle for dominance that characterises societies. Another threat caused by globalization can be the one over workforce, the individuals can move more easily from one country to another so the specialized workforce can move to more developed countries where they can get higher wages. The result of this moving is that the poor countries are now experiencing shortage of qualified staff to run local institutions. The globalization can be a threat also because the dependence of developing countries on the developed ones increases. Reduced trade

Show More
Related
473 Words | 2 Pages

These inequalities effects so many people in society both wealthy and people live in poverty. In America low wage workers have some options like little education and having transportations issue. These people in society have very complex issues and it is difficult they change the situation. These people have low self-esteem they learned in every job.

Read More
1061 Words | 5 Pages

The root of the inequality issue lies in the government policies, as they hold the power to determine where the money lies on the spectrum of the rich, middle class and the poor. Normally, when an economy is suffering, employment as well as wages adjust accordingly and sales as well as profits suffer as well. However, because of this inequality employment rates and wages actually suffer while the sales profit. Political forces, as much as economic ones are what leads to inequality. As the government controls the distribution of sources as well the distribution of income that comes from a market.

Read More
410 Words | 2 Pages

Economists believe that the hardships many poor people face like homelessness or slums are a result of a wealth gap that has been exponentially diverging the rich from the poor since the seventies. Studies show that “over forty

Read More
856 Words | 4 Pages

The problem with the widened wealth gap is that the inequality may harm the quality. Meaning that those in the higher classes see it as you can use the money with no restrictions. However, economist believe that the “relationship between inequality and economic freedom, with the possibility that policies that are meant to reduce inequality will reduce economic freedom, which will then only make inequality worse.”

Read More
660 Words | 3 Pages

The current state of America`s economy is worrying the gap between wealthy and poor in constantly widening. According to Reich (2013), the middle class is earning less than ever before, while the wealthy are banking better revenues than they did in 1978. In terms of wealth, the poor are struggling in corrupt economy, while the rich enjoy establishing multinational companies. Due to changes in the legal provisions advising property ownership and employment insecurity, inequality is widening further with every day. Multinationals are willing to adopt any strategy that assures them tax eviction.

Read More
1127 Words | 5 Pages

Globalization is defined as the transfer or easy flow of goods, services and capital from one country to another. Globalization according to some authors has been accompanied by an increasing rate in inequality in terms of income distribution, and this has happened both in the developed and the developing nations. The data on growth and income inequality seem to contradict the optimism of the proponents of globalization. By conceiving of globalization

Read More
844 Words | 4 Pages

B. Inequalities measure and state of the art B.1 Inequalities types and measurement Usually inequality refers to economic inequality that is either: income inequality, the distribution of income among a group, or wealth inequality, the difference (or the distribution) of quantity of money and valuable possessions. But it can also refer to education inequality, that is the difference in ease to a quality education, or healthcare inequality, that is the difference of difficulty in access to healthcare services. Economic inequality will be the focus here and more specifically the effect of this example of helicopter drop on income inequality, the amount of cash payment was too small to have had a measurable impact on wealth inequality.

Read More
1627 Words | 7 Pages

‘No one should be four times richer than the poorest member of the society’, expressed his view famous ancient philosopher Plato (cited in Atkinson, 2015, p 13). Probably, since the start of the Industrial Revolution, 19th century, economic inequality between people increased excessively. At present, surprisingly, the 62 richest billionaires’ wealth is equal to that of half of the poorer population of the world (Davos, 2016). It means that minority of the people are enjoying luxury life while the others are struggling even to find a piece of bread to survive in this unequal world. Now the gap between rich and poor is enlarging considerably; issues associated with inequality are getting worse constantly and the need to reform revealing

Read More
918 Words | 4 Pages

China had typical reasons that caused wealth inequality: aging, informal family social security and changes in employment pattern (Uchimura, 2005). These reasons were also existing in many other countries, which means the financial gap also existed, this brought changes. According to Frank (2014), for those students who are in wealthier families, they could access into elite university easily and have better chances to get high-paying jobs without debt, while families in middle class or lower are harder to get such advantages. It becomes a vicious circle for the society that, if the governments decide to collect less taxes from the poor in order to reduce their stress, the governments will receive lower revenues. To keep the finance balance, spending must be restricted which means public services such as education, health and housing can not be improved (Castelletti,2008).

Read More
2077 Words | 9 Pages

Speaking to the poorest low-income countries are still common pattern. Countries are often characterized by high unemployment and low wages, a large informal sector and low tax revenues, widespread corruption, inadequate public investment, a small industrial sector and underdeveloped infrastructure. Many low-income countries depend on imports for their food security and export of one or a few commodities. Another financial barrier is the high foreign debts. In addition, many of the countries plagued by war delayed their economic growth and thus the expansion of the welfare

Read More
1324 Words | 6 Pages

Beteille (1983) made a useful distinction between two aspects of inequality – the relational and the distributional aspects. The sociologist is mostly concerned with the first kind, whereas the economist is with the second. In the first case, inequalities are seen as built into the social structure in the form of relations of superordination and subordination, i.e. the patterns of rights and obligations. The economist, on the other hand, sees inequality in the distribution of wealth or income, or, following Sen, in the distribution of certain ‘outcome indicator’ like health or educational status. Why has the economist been rather less concerned about inequality across racial, ethnic or caste groups?

Read More
645 Words | 3 Pages

raises an important question of whether we should readdress what it means to be considered a developed nation. While economic growth has been the standard for many scholars measuring country’s development level, measuring the economic equality level will shed more light on what it truly means to be developed. Just because a nation has a large market does not mean that the citizens are enjoying the growth. There has to be a way to address issues on economic equality.

Read More
1815 Words | 8 Pages

Introduction All over the world, there is an obvious contrast between the living standards and lifestyle of the rich and the poor. Moreover, there is a large gap between the populations of poor and wealthy. This is known as the Wealth Gap, and it is caused by Wealth Inequality. Wealth Income/Inequality is defined as “The unequal distribution of assets within a population.” Wealth is defined as more than just the amount of income a person has, but instead the value of a person’s assets.

Read More
2178 Words | 9 Pages

It also talks about importance of considering all factors in determining the poverty line. Second part of the article talks about the relation between inequality and poverty. This part also looks on individual sate role leading to effective reduction of poverty and bridging the gap between the poor and rich. DEFINING POVERTY Poverty is a social problem.

Read More
988 Words | 4 Pages

`There is a meaningful reduction in extreme poverty over the last 25 years. In 1990, almost fifty percent of the population in developing nations lived on less than $1.25 a day. As of 2015, that proportion has dropped to about fourteen percent. Also it is worthy to note that the number of people living in extreme poverty worldwide has reduced by more than fifty percent. In 1990, 1.9 billion people were reviewed to be living in extreme poverty, compared to 836 million in 2015.

Read More

More about Economic Inequality Analysis

Related Topics

Open Document