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The main reason he foresaw an evolution was due to the recurrent nature of income inequality. In an income inequality situation, the richer keep getting richer due to a better income, while the poor keep getting poorer. The gap between the top earners and the low-income earners keeps widening in an income inequality situation. In America, almost 95% of the national wealth is under 5% ownership; this situation leaves 95% of the population to scrounge for the limited 5% wealth (DeNavas et. Al, 2005).
For economic inequality study, a family makes the ideal study unit. In the study, the family’s income is under analysis, and then the family members ranked from the lowest income earner to the highest income earner. After the ranking, the incomes aid in establishing a Lorenz curve that is important in analysis of income. In order for a Lorenz curve to be correct, the incomes of the family members have to be divided into fifths (Lorenz, 1905). A Lorenz curve enables analysis of data by adding the percentage value of the lowest fifth to the next higher fifth, which becomes the first point of the curve. The second point in the curve comes about through adding the first point to the middle fifth of the derived incomes. The process of plotting continues until exhaustion of all cumulative values of member incomes (Lorenz, 1905).
For a perfect Lorenz curve, all members in a family would earn the same amount and the Lorenz curve would be a diagonal with the lowest point being the lower left hand corner moving progressively towards the higher right hand corner. This diagonal shows an ideal situation and it is the baseline in determining income inequality. Since not all family members receive an equal income, the Lorenz curve turns out as a curve instead of a diagonal. The area between the curve and the diagonal dictates the measure of inequality from one member of a given family to the next member (Lorenz, 1905).
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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.
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).
Drugs have been the companion of man since time immemorial. It has cured, relieved, relaxed, energized, and sedated him. But, there are some which have either killed people or made their lives unworthy of living.
These dangerous drugs have been termed as illegal drugs and one of them is marijuana.
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
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.
This creates a situation whereby one will have to abandon some goods or services in order to enjoy more of others. In cases of inequality that is brought about by unequal distribution of wealth and resources, the budget lines of the individual citizens are highly
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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