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Globalization has led to the creation of global companies which operate in different parts of the world. The benefit of operating global companies is that these companies do not only sell goods and services in their host nation, they even sell their goods and services in foreign nations. Even those individuals who work in these global organizations are paid more than what the middle-class and the lower class of the society is paid. According to The Economist, globalization has benefited global companies such as the one owned by Bill Gates and due to this the entrepreneur now owns a corporation that is worth $50 billion (The Economist, 2006). The same article states that people working in global companies such as Goldman Sachs earn an average salary of $500,000 (The Economist, 2006). These statistics show that companies operating at the global level and their employees earn huge amount of money and this has led to the unequal distribution of wealth between these companies and companies that are restricted to one certain region.
The middle class of the society has witnessed a decline in their income levels due increase in the number of jobs that have been outsourced and because of the failure to obtain employment by the children belonging to this class. According to Nytimes people belonging to the middle class perceive that college education can help them earn high but during the period of 2009 the number of unemployed college graduates was 9.2% (Nytimes, 2010). According to The Economist a huge number of white collar jobs such as accounting positions are being outsourced (The Economist, 2006). These findings clearly show that the college graduates who belong to the middleclass fail to attain employment as a result of their jobs being outsourced and due to this they end up earning less than the rich class of the society.
The middle class and the poor class of the society experience different reasons of income inequality. The poor class experiences
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In the main, Paul Krugman thinks that income inequality is a moral issue because income inequality, from the experience o the United States, has moral consequences. By moral consequences is meant that income inequality has caused severe and substantial, demonstrated harms to society, and as such, falls into the sphere of right and wrong.
According to the essay the World Income Inequality Database maintained by the United Nations University provides some useful information regarding the distribution of income across the globe. The Lorenz Curve and the Gini Coefficient are very beneficial to obtain a clear view of the income distribution in a particular region (ibid).
Poverty incident as measured by the social welfare index steadily declines in the South African region since 1980s. The government policies aimed at increasing international trade and removing economic discriminations against the rural markets largely contributed to the improvement of national poverty statistics in these Nevertheless the rural, urban and national poverty in some countries such as Zimbabwe and Nigeria are increasing (Sahn and Stifel, 2000).
It can vary depending on region. While income inequality has been rising both in developed and developing countries over the decades, it is said to be highest in United States (Madden, 2000). Scholars believe
A higher number shows more unequal distribution of income. According to (Cribb, 2013 ) the rise in the level of income inequality in industrialized nations lead by the host of English speaking nations such as the
Income may result from wages, rent, bank account interests, salaries or even profits made in business transactions ( Stiglitz, 2012).
In his hypothesis, Karl Marx foresaw income inequality in a capitalistic as a
Talented children from low-income families have a challenge of pursuing their careers through talent development. Income inequality is rising every day due to the stagnant incomes earned by the poor and the middle earners.
Income inequality is the unfair distribution of wealth and economic resources between various groups of people, different societies, or individuals within a state. Equity is equality, and where equity fails, inequality must stand.
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