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Opinion on economic issue - Essay Example

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It is essential to highlight that Marx delved into a historical analysis of society thereby revealing the significant connection between politics and…
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Opinion on economic issue
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"Opinion on economic issue"

Download file to see previous pages Thomas Piketty, in his book, Capital in the Twenty-First Century, warns that income inequality will continue increasing because the rate of capital return in developed countries exceed their respective economic growth rates. The book, by analyzing data of the past 250 years, notes of the problem of wealth concentrating in few hands. S&P reports that income inequality has grown in the US thereby excluding a huge part of the population from enjoying the benefits of a large economy. Income inequality is a great problem in the context of the recent recession that made many people lose their hard-earned wealth.
It is crucial to highlight that income, in this sense, is assessed in terms of earnings. Economists and other intellectuals have hypothesized that gaps in technology and education are responsible for corresponding gaps in income earnings. This happens as highly educated and specialized people receive high-income incentives for their work while the lowly skilled receive relatively low pay. It is essential to highlight that firms have different calibers of workers. The workers who receive very high pay are highly likely to possess a larger bargaining power than the employees with lower skills. This seeps into the society and create a persistently unequal community.
Numerous problems stem from income inequality in the society. In the American recession of 2007 to 2009, many individuals lost their job. Loss of jobs makes it difficult to ascend the job environment, especially, for those with relatively low skills. A generation’s inequality has high chances of moving into the next generation in case of no mitigation measures against the same. For instance, a family with low income has limited chances of accessing quality healthcare and education. This further entrenches inequality because talented but unprivileged people cannot access ...Download file to see next pagesRead More
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