Since the mid-nineteenth century income inequality across nations has increased dramatically. Discuss the sources and consequenc - Term Paper Example

Download file to see previous pages... Nineteenth century witnessed collapse of pre-modern empires like the Roman Empire (Mokyr 40). As a result, new political entities, including the British and German empires came into existence. These changes created corresponding dynamics within economic sectors in affected regions. Since then, the world continues to experience shifts in economic dynamics from one region to another. Numerous theories strive to explain causes and consequences associated with these economic shifts. In order to understand what really happens, it is appropriate to look back at history and identify what caused economic changes at those times. Subsequently, we will be able to explain current economic inequality witnessed in modern societies across the world. Introduction In this context, political and social changes that took place during industrial revolution makes 19th Century the starting point of contemporary economic disparities. This period saw the rise of European powers into leading advancement in explorations and social modernization. Great Britain championed industrial revolution, which totally changed productivity and wealth creation across the globe. It was during this time that scientists came up with numerous breakthroughs in the field s of mathematics, electricity, chemistry and metallurgy (Mokyr 43). As a result, Great Britain and other European nations resolved to engage in industrial production of goods and mining activities. In this case, new resources that were not discovered and exploited in earlier empires came into existence. Improvement of transport networks through railway lines and establishment of urban settlements changed ways of living. On the other hand, Japan, Germany, and Portugal embarked on programs meant to spark modernization within their economic sectors. Great Britain led the world into abolition of slave trade in Europe, America, and Brazil. As a result, adoption and application of Liberalism started prevailing in modern government systems. Liberalism translated into the economic system of capitalism, which advocated for liberalized pursuit of economic goals by individuals within the society. Therefore, those who had access to key raw materials could utilize them for profit and wealth generation (Mokyr 44). On the other hand, poor citizens of these empires were employed in mines and industries as casual laborers. In this regard, integration of Liberalism and Capitalism marked inception of economic and income inequalities. In addition, globalization derives its roots from this period when economic performance of one nation could influence performance in another related country. Colonization spread into Africa and Asia where colonizers acquired additional wealth from unexploited territories. As a result, the scramble and partition of Africa by European’s major powers influenced economic changes through wealth acquisition from the colonies. All these economic changes resulted in advancement and increase of economic distribution and income inequality in the world. Income Inequality: Definition In this context, income inequality or economic inequality refers to distribution of assets and factors of production within a given economic region under consideration. Factors of economic production include major assets like land, capital, and labor. Income inequality changes depending on the period of time and economic ...Download file to see next pagesRead More