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Current Issues in International Business and Management, Q) Does wealth inequality matter Critically discuss with reference to current research - Essay Example

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Wealth distribution and inequality matters most not because it stokes the flames leading to envy, but because it drives debilitating dissension and creates instability in the society. However, the best means to address the political problem of envy is undoing the system of the…
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Download file to see previous pages The rapid growth and development that has been witnessed in several parts of the world over the last years has led to a significant decrease in the levels of poverty. Moreover, in general, led to a higher increase in the levels of per capita income and this translates to increase in the income of the poor in a proportionate amount. The global crisis witnessed recently together with the impact it has had on the economic activities, number of jobs and the poor, has just spurred a renewed focus on the factors driving growth. These factors include the possible link between income inequality, sustainability of growth and crises (Castaeda et al. 2003).
With GDP, the countries that have high per capita income do not occasionally have good quality of life. There are several countries in the developing world whose gross domestic product is high such as Sudan and Eritrea but the quality of life in the countries is still below the level of a “good” life. Therefore, GDP cannot be used as a measure of how prosperous people are. Nonetheless, rapid increase in the gross domestic product has been associated with decreasing poverty index.
Within several countries, indicators of wealth inequalities such as Gini coefficient reveal less about people who have benefited and lost from the trends. Household situations provide a clear and complete view and show that in several countries, gains in disposable incomes have fallen short of GDP increase. These cases have been particularly for the households, which are poor. The middle-income households have fared better but though they are also lagging behind the growth of gross domestic product.
It is observed that globalisation is creating pressures that ultimately increase inequality levels in the contemporary society. The proponents of globalisation have hailed the rapid growth of the economy. In addition, indeed, after several decades of dramatic improvement and rapid economic growth, some of the countries that ...Download file to see next pagesRead More
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