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Main Causes Of Economic Inequality

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INTRODUCTION Economic inequalities can be shown by individuals’ different positions within the economic circulation. People’s economic positions are related also to other characteristics, like whether they have or not a disability, their ethnic background, or if they are a man or a woman. TYPES OF ECONOMIC INEQUALITY: There are three types of economic inequality, income inequality, pay inequality and wealth inequality. Income inequality: Income inequality is the extent to which income is circulated unevenly in a group of individuals. By income is not just the money received through payments, but all the money got from employment, investments, such as interest on savings accounts and profits from shares of stock, savings, state benefits, …show more content…

In free market, the market price of a skill is decided by market demand and market supply. The market price of a skill, and thus the wage for the job that needs the skill, is low if a large number of workers (high supply) are willing to offer that skill but only few employers need it (low demand). On the other hand, when there is low supply but high demand for a skill, the wage for a job requiring the skill goes up. Education affects wages People with different levels of education receive different salaries [3]. The level of education is proportional to the level of skill of each person. With higher level of education, a person has more advanced skills than few workers can offer, justifying like this a higher salary. The impact of education on economic inequality is still profound in advanced countries and cities [4]. Although there are usually policies of free education in advanced nations, levels of education earned by each individual still differ, not because of financial ability but inherent qualities like intelligence, drive and personal ability. For example, in Hong Kong, 12 years of free education are provided for each citizen, not covering tertiary education, offered only when students earn specific results on public …show more content…

In democratic societies that lack public financing of campaigns like the United States, political figures need private financial support in order to run effectively the campaigns. Federal candidates during 2010 elections spent around six billion dollars. Successful candidates spent average of $10.3 million on their elections, while winning. Congressional candidates spent average of $1.6 million. While more money spent does not always result in more votes, campaign expenditures correlate closely with votes that researchers have been able to predict that for every $5 spent, a candidate will receive approximately one

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Throughout his article, he speaks about education. “The Upside of Income Inequality” makes two basic points to support the conclusion noted in the title of the article. First, the correlations between educationa and income; that the value of a college education has risen as income inequality has risen. And second, that therefore the rate of Americans who attend college has increased. The article provides multiple graphs that correlate different principles with education and income.

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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.

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Education is very expensive and by reducing the price, more people can become smarter and get better paying jobs, and “It may seem intuitive that more educated people earn more, yet the extent to which this is true is striking. ”(Looney, Adam “Education Is the Key to Better Jobs.”) Some countries don’t even have these freedoms like being able believe in a religion of choice or even being able to drive. Today, we are very lucky to have the freedoms that we have. Although we have all these freedoms, we still have inequality.

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Changing the price of the Model T was thought to improve the sales that have already previously occurred. Years after the Model T has been released to America other vehicles began to be released to the general public. It was during 1916 that a study was conducted to see which vehicle was purchased by Americans the most. As a result from the study it showed that 55% of the vehicles that Americans owned was the Model T, which was distributed by the Ford Motor Company.[4] As the years passed the number of Model T’s that were being purchased began to slow down which resulted in the slow down in their production. Unaware as to why the number of Model T’s being sold began to decrease it lead the Ford company no choice but to stop the production

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According to the Center for Responsive Politics, the predicted average for campaign finance spending for the 2012 election was 6 billion dollars. In the United Kingdom, party spending was only 49 million dollars. Because there is no limitation placed on the amount of money that corporations and citizens can donate to campaigns, it has led to a distrust in the public concerning the political process in the United Kingdom. According to Statistics Norway, over 74% of campaign funding is provided by the government in 2010. One drastic difference between the United States and Norway is that unlike the U.S., political ads are not permitted on the television and radio.

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However, what cannot be debated is the same Pew Research Center study found a majority (Both, Democrats and Republicans) believe money has a greater influence on politics today, and the high cost of presidential campaigns discourages good candidates. (Desilver & Van Kessel, 2015). The sentiment of voters is clear, big money has permeated campaigns to an unacceptable degree. To illustrate, Super PACs made $65 million in expenditures in 2010, $608 million in 2012, and $339 for the 2014 mid-term elections (Desilver & Van Kessel, 2015). During the current election cycle, Super PACs have already raised a total of $313.5 million and spent $73.2 million (Desilver

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Inequality, by definition is the difference in size, degree, circumstances and lack of one. Income and wealth inequality is currently a major phenomenon affecting the lives of many, including Australians. We aussies love to relish on our beliefs, specifically by perceiving our nation as egalitarian. We’ve deemed our country as an income and wealth friendly country, in which everyone receives suitable amounts of income/wealth depending on their occupations. However, all of these remarks are not necessarily correct and in this feature article I will aim to identify, illuminate and discover the current issues of inequality in income and wealth within Australia.

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According to the U.S. Congressional Research Service, there are mainly 3 reasons for the income inequality of American society. The first reason is that American national output used to lesson the income inequality is fewer than other countries do. In Germany, public social spending accounted for 27.8 percent of gross domestic product in 2009, compared with 19.2 percent in the United States, according to the OECD. The second reason is the American tax system. If the tax is used to solve the social problems, for example the terms of employment, the income inequality can be reduced.

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Inequality is often associated with racial injustice, but actually goes beyond that and has created new ways for social inequality to exist among various circumstances in our country. It affects millions in terms of their way/ quality of life. In the United States and around the world, civilians struggle to receive adequate health care at the expense of their day jobs, hindering them from this as they cannot afford it. The middle has been struggling for decades over the same issues, yet permanent action has yet to transform the country. The issue of inequality has recinfoced itself in health care and income and continues to manifest itself in our society today leading to social problems in which we cannot escape making it an institutional

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Abstract The economy is very skewered and is not equal in any meaning. The poor stay poor and the rich stay rich. The poor die off faster and the rich live longer. The poor get little to no education and the rich get the best education possible.

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Wealth, race, gender, and mental illness has torn society apart and lead to inequality. These major reasons for inequality has affected everyone in its path leading to major consequences as well as issues and problems. In China, a new found wealth has left the social classes more divided and issues are beginning to rise. Meanwhile in the U.S., wealth is destroying students and unequal views toward specific types of people are weakening the patriotic bond. To begin, there are many types and factors that play a part in inequality and the consequences of societies from it, but one of the main reasons and apparent factors is wealth.

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In the discussion of social inequality, one cannot leave out the sociological theories and models proposed by Karl Marx and Adam Smith. Generally, social inequality refers to the presence of unequal treatment, opportunities and rewards tied to people of various social standings within the hierarchy of a community group or society. Some common types of social inequality include wealth and income disparity as well as social class stratification. For Marx and Smith, both had explored the various types of social inequality in society.

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Rather than reducing social and economic inequality, China’s rapid economic growth magnifies the gap of benefits received by people in different socio-economic groups. As we will see, social and economic inequality are two sides of the same coin and is not solely the product of economic development. In addition to pure market forces, state policies play a significant role in contributing to the high levels of inequality China experiences nowadays. Despite the government’s concern towards inequality, recent interventions are not sufficiently targeted at the main causes of this issue which result in the continuing climb of China’s inequality figure. Nevertheless, contrary to conventional wisdom, the threat of inequality to China’s social and

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1. Introduction Income inequality has grown significantly during this past decades and this phenomenon continues to increase over the years. This problem is constantly discussed in the daily news all around the world. Several consequences of this increase of inequality between people leads to economic problems such as high unemployment rates, lack of work for young people, fall of demand for certain product. The gap between rich and poor is increasing, the rich are richer and the poor are poorer as a result politicians and economists try to adopt certain policies in order to reduce this gap.

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Second, some students may not be able to find a job matching their high education level, so they fall short of the average income compared with typical college graduate. Furthermore, Elsevier states that the majority of the macroeconomic literature on economic returns to education employs measures of the quantity of schooling, averaged across the working-age population. It is poor education quality and education condition that bring about low labor productivity. Therefore, the government must pay more attention to the quality of schools because economic growth depends on the knowledge and skills of the

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