Wealth And Income Inequality In Uk - Essay Example

WEALTH AND INCOME INEQUALITY IN UK By Location Introduction Riches is the quality from claiming everylast bit stakes possessed by a distinct alternately a nation. For individuals, it is expressed as net worth and for a country, its gross domestic product. Wealth is the calculation of the total market value of all physical and intangible assets of a company or individual then subtracting the debts. A person is wealthy by having lot valuable possessions like cars, land and a country can be termed rich by having minerals like gold, oil. Income is money we receive on a regular basis, mostly hourly, weekly or monthly to cater for our day to day expenses to survive. We receive income after providing a good or a service to individuals, if you are employed. It is called salary and if you are running a business, you invest capital for starting up and wait for profits after subtracting the expenses incurred. We also have a senior citizen who receives their income after retirement through pension or investments, mostly people above the age bracket of 65. Both business and individuals are subject to pay taxes to the government, deducting from salaries and reported profits that company makes. Disappointment to pay imposes will be punishable towards law. Body Wealth and Income Inequality Compared to other developed countries the UK has a very high rate of variation. Wealth inequality is the unequal distribution of assets and saving among individuals in a country while income inequality is the extent of uneven distribution of income in the society creating a wide gap between the rich and the poor. Danny Dorling, famously known for his book inequality and the 1%, points it out clearly that the 1% are becoming more greedier, the rate at which inequality is increasing in the society is alarming, the central question he poses is can we afford the super-rich? A famous billionaire took pride in saying that, the 1% have won the class warfare, they have been fighting for 20 years, mentioning how they got their taxes reduced. Qualifying to be among the 1% in the UK is not a joke, you need an income of about 160,000 pounds before tax a year for a single citizen when you have a family the higher income you need (Dorling 2014). The gap between wealth and income inequality in the UK is not the same. Wealth inequality is more compared to income inequality the percentage of the wealthy is like 1% percent of the whole population, making it unfair. 50% has been the poorest hold 9.5% of the wealth while 10% hold 44% (Dorling 2014). The bottom 10% of the population has less than 12,500 pounds while the top 9% have more than 1,000,000 pounds. Income inequality in the UK, the bottom 10% of the population, has a net income of 8,500 while the top 10% are getting times 10 or more of that, a misfortune to the society. Income is very different from wealth; income is the flow of money received through rental, wages, and profits while wealth is something accumulated in large quantities. Savings in a bank, ownership of property and shares, life assurance schemes (Dorling 2014). The main reason the wealthy continue being rich is because wealth generates income, so the living standards of the wealthy keep getting better while the everyday citizens keep struggling with more than one job to be able to generate enough income to feed her/his family. The main challenge the society is facing the redistribution of resources (Dorling 2014). Poverty Poverty is a burden that most people in the society are carrying in their everyday lives. Neediness may be not knowing the place your next supper is going to come from, not having shelter, not being able to access medical care, being jobless, not having power over yourself and others. It is a disease that can take one to the grave if the conditions do not improve accordingly (Stiglitz 2012) Social problems associated with poverty and inequality in the society Social conflict is an issue that affects the majority of the population and needs to be addressed to avoid further damage, health with no doubt is one of the main factors caused by inequality of income and wealth. Life expectancy for the wealthy is higher, they can afford a better health care system, and they have good medical covers that led to the new dictation of diseases, thus starting treatment early as opposed to the ordinary citizen who cannot even afford medicine when he is sick. Secondly, the education system for the rich is well advanced shaping the future of the lucky few towards the light direction while the ones who cannot afford private schools that are so damn expensive have no choice but to attend public schools who resources are quite limited compared to the population of the students. Same age o boy or girl, different classes, different exposure (Bentham 2013). The crime rate is higher and more evident in societies that are for the poor. Kids grow up knowing that violence is the only way out because they had to steal to put food on their table. Society taught them to toughen up at a very tend age. By the time, they turn 18 they have already been convicted of several crimes. The more parents are straining to bring up their children because of low income they are more unsafe the society id going to become for generations of the future. Alcohol and drug abuse is very common in slum areas; the most saddening fact is that indeed, even children underneath the age of 18 years are engaging in the use of substances like cocaine (Bentham 2013). Backpedaling to neediness, they need something strong to help them escape the harsh realities of everyday life. They are idle with nothing to do; they do not care about education because they do not even know whether they will sleep on an empty stomach or not. A state of misery and frustration in the society is causing people to make tough decisions about joining the terrorist groups, young girls doing prostitution with even with men old enough to be their fathers, leading to unplanned pregnancies and increased number of HIV infections in the society. Last but not least child labor and divorce, underage children are forced to work to meet their daily needs. According to law, persons below the age of 18 is supposed to have easy access to health, food, clothing, housing and education. Prominent that numerous families part up because of destitution; happiness is impossible when you cannot provide for your family, causing much tension in the houses. Ways of government eradicating poverty I believe the government can engage in activities like planning and execution of projects that will help eliminate poverty for instance income community generating projects like cash wash services, carpentry creating jobs to the jobless. The government should make the education system free or affordable to the common citizen, and further engage in the building of community colleges or technical school to help the less fortunate acquire skills to assist them earn a few pounds (Yunus 2007). The building of rehabilitation centers and provision of family counseling services in the most affected communities to help change the future of the generations to come. Change is possible if we stand together and fight for it. Enhancement of law protecting the minority, anyone caught employing or abusing a minor will face the wrath of the law. Availability of social grants, like foster care, child support, general relief, disability grant to help those in need, the government should also ensure its availability to the people who need it. The rate of corruption in the sector is not to tolerate at all costs (Yunus 2007). Disability grant provided to the children and adults who cannot even work to get income but need food and shelter to survive. The government should consider renovation and building of new schools and clinics or job creation and livelihood improvement. Increase investments of funds in poverty stricken areas, by taking financial loans to build better houses, schools, hospitals, encourage organizations in the world to invest or donate to create a better tomorrow or save a life. Conclusion With a responsible government and sound management system, eradicating poverty should not be an alarming issue, income disparities between the rich and the poor will incredibly decrease. More citizens will enter the wealthy bracket, and few or none will be below the poverty line. The society of today and tomorrow should take this subject very seriously because it determines the future of tomorrow. We all need good food, health, education, houses. The list is endless. So we should come together as one and work towards creating a favorable environment for everyone. Society has made it a little difficult for equality to have a chance. The balance and the gap between the rich and the poor continue to grow every day in the UK and around the world. Eradication of poverty and the high poverty levels should be one of the highest priorities of the government for the sake of its citizens. References Bentham, J 2013, Pauperland: poverty and the poor in Britain, Hurst Publishers, London. Dorling, D 2014, Inequality and the 1%, Verso Publishers, London. Stiglitz, J 2012, The price of Inequality: How Todays Divided Society Endangers our Future, W.W Norton & Company, New York. Yunus, M 2007, Creating a World Without Poverty: Social Business and the Future of Capitalism, Perseus Group of Books Publishers, New York. Read More