Economic Inequality In Chile Essay

Chile: - GDP / Capita: 15,732, Gini Index: 50, PPP: 335.4 billion, Unemployment Rate: 6.4%

Economic Inequality is becoming a big problem in the modern world. In today’s world, CEOs of big companies can earn up to 300 times more than their average employee. Additionally, even when the world’s economies are doing well, a huge majority of the money always seems to finds it’s way to the wealthy instead of the poor. Furthermore, this is not an easy problem to solve because it isn’t very clear what the causes are. Unemployment rates show very little to no correlation with Economic Inequality; however, countries with lower GDP seem to generally have more inequality, but there are there is still no conclusive evidence of GDP having an effect on Economic Inequality.

In Chile, we have one of the strongest economies in South America. However, we, along with Brazil, have the worst Economic Inequality in South America. Our unemployment rate is below the worldwide

We think the most effective way to deal with Income Inequality is to increase tax on the wealthy while lowering tax on those living in poverty. In the past in Chile, the tax rate on the highest income earners has been much, much higher; as the tax rate on the highest income earners has decreased, Income Inequality has increased. We could also start enforcing policy to decrease unemployment levels, but this would not be sure to work unless a very substantial percentage of the unemployed people in the country were given a job. Education is another possible way out. If more people have the skills needed to get into higher income, highly qualified jobs, then more of those jobs will likely be created. However, it is not certain that more highly qualified jobs would be created just because there would be more people qualified to do them. Economic Disparity is a complex problem, and solutions will not come easily or be easy to