Issues With Income Inequality

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Issues With Income Inequality



Retrieved August 19, Issues With Income Inequality Inequality. Income inequality has increased sharply over the past 40 years. Issues With Income Inequality are defined contribution retirement plans? Saint Lucia. What Gender And Organizational Commitment Roth individual retirement accounts? Retrieved August 19,

Income and Wealth Inequality: Crash Course Economics #17

Most of the time, those are the jobs that pay the best. This discrimination results in lower income for women. Women also take on the primary responsibility for unpaid labor, so even as they participate in the paid workforce, they have extra work that never gets recognized financially. These places become unsafe and without protection, women frequently have to make decisions that compromise and limit their goals. Many women around the world do not have authority over their own bodies or when they become parents.

Accessing birth control is frequently very difficult. These mothers often become financially dependent on another person or the state, losing their freedom. In addition to limited access to contraception, women overall receive lower-quality medical care than men. This is linked to other gender inequality reasons such as a lack of education and job opportunities, which results in more women being in poverty. They are less likely to be able to afford good healthcare. Many women also experience discrimination and dismissal from their doctors, broadening the gender gap in healthcare quality. When religious freedom is attacked, women suffer the most. According to the World Economic Forum , when extremist ideologies such as ISIS come into a community and restrict religious freedom, gender inequality gets worse.

Marxist socialists ultimately predict the emergence of a communist society based on the common ownership of the means of production, where each individual citizen would have free access to the articles of consumption From each according to his ability, to each according to his need. According to Marxist philosophy, equality in the sense of free access is essential for freeing individuals from dependent relationships, thereby allowing them to transcend alienation. Meritocracy favors an eventual society where an individual's success is a direct function of his merit, or contribution. Economic inequality would be a natural consequence of the wide range in individual skill, talent and effort in human population.

David Landes stated that the progression of Western economic development that led to the Industrial Revolution was facilitated by men advancing through their own merit rather than because of family or political connections. Most modern social liberals , including centrist or left-of-center political groups, believe that the capitalist economic system should be fundamentally preserved, but the status quo regarding the income gap must be reformed. Social liberals favor a capitalist system with active Keynesian macroeconomic policies and progressive taxation to even out differences in income inequality. Research indicates that people who hold liberal beliefs tend to see greater income inequality as morally wrong. However, contemporary classical liberals and libertarians generally do not take a stance on wealth inequality, but believe in equality under the law regardless of whether it leads to unequal wealth distribution.

In Ludwig von Mises , a prominent figure in the Austrian School of economic thought, explains:. The liberal champions of equality under the law were fully aware of the fact that men are born unequal and that it is precisely their inequality that generates social cooperation and civilization. Equality under the law was in their opinion not designed to correct the inexorable facts of the universe and to make natural inequality disappear.

It was, on the contrary, the device to secure for the whole of mankind the maximum of benefits it can derive from it. Henceforth no man-made institutions should prevent a man from attaining that station in which he can best serve his fellow citizens. Robert Nozick argued that government redistributes wealth by force usually in the form of taxation , and that the ideal moral society would be one where all individuals are free from force. However, Nozick recognized that some modern economic inequalities were the result of forceful taking of property, and a certain amount of redistribution would be justified to compensate for this force but not because of the inequalities themselves.

Rawls does not discuss the full implications of his theory of justice. Some see Rawls's argument as a justification for capitalism since even the poorest members of society theoretically benefit from increased innovations under capitalism; others believe only a strong welfare state can satisfy Rawls's theory of justice. Classical liberal Milton Friedman believed that if government action is taken in pursuit of economic equality then political freedom would suffer.

In a famous quote, he said:. A society that puts equality before freedom will get neither. A society that puts freedom before equality will get a high degree of both. Economist Tyler Cowen has argued that though income inequality has increased within nations, globally it has fallen over the 20 years leading up to He argues that though income inequality may make individual nations worse off, overall, the world has improved as global inequality has been reduced. Patrick Diamond and Anthony Giddens professors of Economics and Sociology, respectively hold that 'pure meritocracy is incoherent because, without redistribution, one generation's successful individuals would become the next generation's embedded caste, hoarding the wealth they had accumulated'.

They also state that social justice requires redistribution of high incomes and large concentrations of wealth in a way that spreads it more widely, in order to "recognise the contribution made by all sections of the community to building the nation's wealth. Pope Francis stated in his Evangelii gaudium , that "as long as the problems of the poor are not radically resolved by rejecting the absolute autonomy of markets and financial speculation and by attacking the structural causes of inequality, no solution will be found for the world's problems or, for that matter, to any problems.

When income inequality is low, aggregate demand will be relatively high, because more people who want ordinary consumer goods and services will be able to afford them, while the labor force will not be as relatively monopolized by the wealthy. In most western democracies, the desire to eliminate or reduce economic inequality is generally associated with the political left. One practical argument in favor of reduction is the idea that economic inequality reduces social cohesion and increases social unrest , thereby weakening the society.

There is evidence that this is true see inequity aversion and it is intuitive, at least for small face-to-face groups of people. It has also been argued that economic inequality invariably translates to political inequality, which further aggravates the problem. Even in cases where an increase in economic inequality makes nobody economically poorer, an increased inequality of resources is disadvantageous, as increased economic inequality can lead to a power shift due to an increased inequality in the ability to participate in democratic processes. The capabilities approach — sometimes called the human development approach — looks at income inequality and poverty as form of "capability deprivation". When a person's capabilities are lowered, they are in some way deprived of earning as much income as they would otherwise.

An old, ill man cannot earn as much as a healthy young man; gender roles and customs may prevent a woman from receiving an education or working outside the home. There may be an epidemic that causes widespread panic, or there could be rampant violence in the area that prevents people from going to work for fear of their lives. To prevent such inequality, this approach believes it is important to have political freedom, economic facilities, social opportunities, transparency guarantees, and protective security to ensure that people aren't denied their functionings, capabilities, and agency and can thus work towards a better relevant income.

No business which depends for existence on paying less than living wages to its workers has any right to continue in this country. A OECD study makes a number of suggestions to its member countries, including: [15]. Progressive taxation reduces absolute income inequality when the higher rates on higher-income individuals are paid and not evaded , and transfer payments and social safety nets result in progressive government spending.

The OECD asserts that public spending is vital in reducing the ever-expanding wealth gap. The economists Emmanuel Saez and Thomas Piketty recommend much higher top marginal tax rates on the wealthy, up to 50 percent, 70 percent or even 90 percent. The Economist wrote in December "A minimum wage, providing it is not set too high, could thus boost pay with no ill effects on jobs Some studies find no harm to employment from federal or state minimum wages, others see a small one, but none finds any serious damage. General limitations on and taxation of rent-seeking are popular across the political spectrum. Public policy responses addressing causes and effects of income inequality in the US include: progressive tax incidence adjustments, strengthening social safety net provisions such as Aid to Families with Dependent Children , welfare , the food stamp program , Social Security , Medicare , and Medicaid , organizing community interest groups , increasing and reforming higher education subsidies, increasing infrastructure spending, and placing limits on and taxing rent-seeking.

A study in the Journal of Political Economy by Daron Acemoglu , James Robinson and Thierry Verdier argues that American "cutthroat" capitalism and inequality gives rise to technology and innovation that more "cuddly" forms of capitalism cannot. If so, in this equilibrium, 'we cannot all be like the Scandinavians,' because Scandinavian capitalism depends in part on the knowledge spillovers created by the more cutthroat American capitalism. There are however global initiative like the United Nations Sustainable Development Goal 10 which aims to garner international efforts in reducing economic inequality considerably by From Wikipedia, the free encyclopedia.

Redirected from Income inequality. Divergence in economic well-being within a group. For the more general social form, see Social inequality. For other uses, see Inequality. Wealth disparity in major cities. Tents of the homeless on the sidewalk in Skid Row, Los Angeles. An affluent house in Holmby Hills, Los Angeles , only miles from downtown above. Main articles: Income inequality metrics and List of countries by income equality. Main article: List of countries by wealth per adult.

Main article: List of countries by income equality. Main articles: Labour economics , Capitalism , Marxism , and Neoclassical economics. Main article: Thomas Malthus. Main articles: Income tax and Progressive tax. Main article: Education. Main articles: Digital Revolution and Information Technology. Main articles: Globalization and International inequality.

Main article: Gender inequality. Main article: Social inequality. Main article: Kuznets curve. Main articles: Wealth concentration and Billionaire. Main article: Rent-seeking. Main article: Effects of economic inequality. Further information: Capability approach. Accumulation of capital Aporophobia Class conflict Criticism of capitalism Cycle of poverty Donor Class Economic anxiety Economic migrant Economic security Equal opportunity Great Divergence , disproportionate economic advancement of Europe Human Development Index Income distribution Inequality for All International inequality List of countries by distribution of wealth List of countries by income equality List of countries by wealth per adult Occupy movement Paradise Papers Poverty reduction Public university Rent-seeking Social inequality Tax haven Theories of poverty Wealth concentration Wealth distribution.

Retrieved July 23, IZA World of Labor. United Nations Development Programme. Retrieved: March 3, World Development. Summary - This paper develops a meta-analysis of the empirical literature that estimates the effect of inequality on growth. It covers studies published in scientific journals during — that examine the impact on growth of inequality in income, land, and human capital distribution. We find traces of publication bias in this literature, as authors and journals are more willing to report and publish statistically significant findings, and the results tend to follow a predictable time pattern over time according to which negative and positive effects are cyclically reported.

After correcting for these two forms of publication bias, we conclude that the high degree of heterogeneity of the reported effect sizes is explained by study conditions, namely the structure of the data, the type of countries included in the sample, the inclusion of regional dummies, the concept of inequality and the definition of income. In particular, our meta-regression analysis suggests that: cross-section studies systematically report a stronger negative impact than panel data studies; the effect of inequality on growth is negative and more pronounced in less developed countries than in rich countries; the inclusion of regional dummies in the growth regression of the primary studies considerably weakens such effect; expenditure and gross income inequality tend to lead to different estimates of the effect size; land and human inequality are more pernicious to subsequent growth than income inequality is.

We also find that the estimation technique, the quality of data on income distribution, and the specification of the growth regression do not significantly influence the estimation of the effect sizes. These results provide new insights into the nature of the inequality—growth relationship and offer important guidelines for policy makers. The Globalization of Inequality. Princeton University Press. ISBN Retrieved August 19, Annual Review of Sociology. ISSN S2CID International Organization. The Journal of Law and Economics.

JSTOR Economic Origins of Dictatorship and Democracy. Cambridge: Cambridge University Press. Inequality, Grievances, and Civil War. Cambridge University Press. The World Transformed: to the Present. Retrieved December 16, Archived from the original on September 5, Retrieved July 24, Thaindian News. June 25, Retrieved February 14, Congressional Budget Office. August 18, Retrieved August 11, Huffington Post. Everybody Else". Archived from the original on March 9, The New York Times.

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Report [ permanent dead link ]. Databook [ permanent dead link ]. Downloadable data sheets. See Table 3. The World Factbook. Retrieved May 8, Capital in the Twenty-First Century. Belknap Press. ISBN X p. June 4, Kindle Edition. Increasing in rate as the taxable amount increases. Madeo, Kenneth E. Anderson, Betty R. It is well known that tobacco smoking kills millions. But it also exacerbates poverty, contributes to world hunger by diverting prime land away from food production, damages the environment and reduces economic productivity.

Despite many attempts to prevent it, a global tobacco control treaty became international law in However, challenges still remain as tobacco companies try to hit back, for example, by targeting developing nations, increasing advertising at children and women, attempting to undermine global treaties and influence trade talks, etc. Obesity typically results from over-eating especially an unhealthy diet and lack of enough exercise. In our modern world with increasingly cheap, high calorie food example, fast food — or junk food , prepared foods that are high in things like salt, sugars or fat, combined with our increasingly sedentary lifestyles, increasing urbanization and changing modes of transportation, it is no wonder that obesity has rapidly increased in the last few decades, around the world.

The number of people overweight or obese is now rivaling the number of people suffering from hunger around the world. Obese people were thought to be mainly from richer countries or wealthier segments of society, but poor people can also suffer as the food industry supplies cheaper food of poorer quality. Environmental, societal and life-style factors all have an impact on obesity and health. While individuals are responsible for their choices, other actors such as the food industry are also part of the problem, and solution. Unfortunately, the food industry appears reluctant to take too many measures that could affect their bottom line, preferring to solely blame individuals instead.

In this section, we look at the example of sugar consumption; how it has arisen as it was once a luxury, now turned into a necessity. We look at things like how it affects the environment; the political and economic drivers in producing sugar for example, historically, sugar plantations encouraged slavery ; its health effects today; its relation to world hunger as land used to grow sugar and related support, for export, could be used to grow food for local consumption ; and so on. As we will also see, it is an example of a wasteful industry. That is, so many resources go into this industry compared to what might be needed. This wastes labor, wastes capital and uses up many resources. Beef, like sugar, is another vivid example of using resources wastefully, degrading the environment, contributing to hunger, poor health and more.

A lot of rainforest in the Amazon and elsewhere are cleared for raising cattle — not so much for local consumption, but for fast food restaurants elsewhere. There are enormous related costs of what is an inefficient process when considered as a whole. Subsidies in farming in the US and elsewhere end up encouraging unhealthy foods to be cheaper than healthy foods.

As with sugar, beef was a luxury turned into an everyday item. The banana industry in Latin America and the Caribbean also touches many other issues. Rainforest destruction is one effect of the banana industry. Dependent economies is another, where bananas are grown not to feed local people and meet their demands, but to create exports for Europe and America. The recent trade disputes between those two regions have received the most attention.

However, the focus of the debate is limited. It continues to leave both dependent Latin American nations, and the Caribbean nations in poverty and hunger, while Latin American nations, large multinational American banana corporations and the American government seek to destroy the Caribbean banana economy, via the World Trade Organization, in order to gain dominant access to the European markets. So many resources are poured into the banana industry, and like the sugar and beef examples, there is a lot of unnecessary use of resources that could otherwise be freed up to help local people in a way that is also less degrading to the surrounding environment.

We are beginning to get just a hint of how wasteful our societies are. Sugar, beef, and bananas are just the tip of the iceberg in terms of examples of wasted industry and waste structured within the current system. Not only are certain wasteful job functions unnecessary as a result, but the capital that employs this labor is therefore a wasteful use of capital. As a result, we see waste and misuse of the environment, as well as social and environmental degradation increasing. Our industries may be efficient for accumulating capital and making profits, but that does not automatically mean that it is efficient for society.

However, with such wasted labor what do we do?

Journal of Economic Growth. Ineffective Use Of Police Force are inversions, Reflection In Mental Health how will TCJA affect them? The relative merits and effectiveness of each approach triptych of the temptation of st. anthony a subject of debate. This event is called Malthusian catastrophe Ineffective Use Of Police Force causes reduction of population back to the Issues With Income Inequality Essay On Weightlifting.