Economists argue that redistributing the income from the rich to the poor could hurt the economy. There will be costs involved in this redistribution of wealthy. Trying to reduce the gap will have a negative impact on the…
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The government will get enough funds to run its operations (Chambers, 2008, p. 98).
Countries that support inequality experience political stability. Those who do not support this face welfare crisis (Hanushek, 2006). The governments will pay heavy for creating a monetary union without political unions. Thus, it creates instability. It is very hard to have equality of opportunity (Navarro, 2007, p. 100).
There will be economic efficiency in the presence of inequality. The poor in society will have an incentive to work hard. Because of the need to be high earners. In an unequal society, there are limited resources. The government will be able to gain resources from the taxes garnered from the rich (Harmon, 2009, p. 19).
There is no social justice in equality. The poor will access low standards of living and do not receive social amenities like healthcare. Those with great wealth provide to their people and take the opportunities meant for the little wealthy. Thus, the cause of injustice (Arrow, 1996, p. 12).
Some economists believe degree of inequalities is necessary for working of free markets. In a free market, income inequality will be a fact. There is no equal income and the rich will have their say in the markets. The governments of various countries fail in putting up an equal opportunity for all (Barbanel, 2013, p.
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The income inequality has been analyzed in various developing and developed countries to find out if there has really been the dispersion in wages in the two decades following 1980. There have been international trade theories describing the importance of efficient allocation of resources through trade.
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.
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).
166 and 167). At the same time, reducing health inequalities has been incorporated into Italy's 2000-2000 National Health Plan and Sweden is developing a health strategy structured around measurable equity targets (Ministero della Sanita, 2000; National Public Health Commission, 2000).
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.
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