Economic inequality

Abstract

The research paper on the economic inequality entails about the gap between rich and poor, wealth and income differences and wealth disparity, include all inequality in the distribution of income and economic assets. The research papers show the factors that affect the economic inequality, the consequences of it and the possible measures that can be taker to bring the reduction in the economic inequality.

Table of Contents

Abstracti

Table of Contentsii

Introduction2

Discussion3

Income Inequality and Economic Growth3

Factors of Economic Inequality4

Labor Market4

Taxes4

Globalization5

Gender5

Innovative Technology6

Wealth Concentration6

Effects of Economic Inequality7

Solution to Economic Inequality8

Conclusion8

References10

Appendix11

Economic Inequality

Introduction

“The worst form of inequality is to try to make unequal things equal.” (Aristotle,384 BC-322 BC). Economic Inequality, which is also called the income inequality, the gap between rich and poor, wealth and income differences and wealth disparity, include all inequality in the distribution of income and economic assets. The term is used to define the inequality among groups and individuals within the society, but even is referred as inequality among countries. The concern of economic inequality related to equity: equality of opportunity and equality of outcome. Economic inequality is not a new concept; it has and does exist in a wide range of societies and historical periods. The main creators of economic equality are the structure of the country, system like capitalism or socialism, present ongoing war or post war period and individual ability of individuals to create wealth (Creamer, 2011).

About 25years from now, the inequality rate began to increase in United States. The wealthy were enjoying substantial rise in the standards while the poverty rate increased, and income fell amongst poor. The reason for the equality has long been a debate, but the major reason for the rise was global trade, decrease of usage of human capital, increase of usage of machineries, a deduction in union strength, and the decline in the real value of wage.

The economic inequality has the profound impact is compounded by social consequences. The increasing economic inequality leads to the increasing gap in education outcome. The differences in the education system will be because of the affluent class would generate resources for suburban schools and would prefer private schools over public schools and creating difficulties for lower income people to have improved or standard education.

The world Institute for Development Economics Research study at United Nations University shows that the 1% richest adults solely pose 40% of global assets in year 2000. The three richest people own greater financial assets than the lowest 48 nations. It has been noted that in a period of two decades the real disposable household income has boost to 1.7% a year in 34 member countries prior to the global financial crisis (THORBECKE & CHARUMILIND, 2002).

Discussion

Income Inequality and Economic Growth

The variety of economic literature explains the relationship between income inequality and economic growth. The Kuznets explains his Inverted U hypothesis as the economic growth, which is the rise in the per capita income, will lead to increase and decrease in the income inequality with a nation. The preliminary level of inequality is the foremost determinate of ...