Wealth Distribution as a Major Determining Factor for the Economic Growth in Regions of the World - Coursework Example

Wealth Equality The quest for wealth equality is at the peak of the need for the attainment of a uniform economic growth and the reduction of poverty levels around the world. The term economic or wealth equality espouses among other things equal distribution of assets, and income levels amongst individuals or groups of people. Moreover at a larger dimension, wealth equality also addresses the inequalities between different countries around the globe. This paper will examine the wealth distribution as a major determining factor for the economic growth in regions of the world. The paper will also look at the genesis of the quest for economic equality, the state of the whole matter in addition to the effects of the same in the attainment of equitable economic growth around the globe. This is done in line with an in-depth analysis of the Virginia Declaration, the UN universal human rights and the Bill of rights among other related sources. The need to pursue economic equality among individuals and between different countries of the world arose upon the realization of the exploitative nature of humans by their fellow likes. This was as a result of the ever escalating gap between the bourgeoisies and lower class people in the society (Wilkinson and Pickett). In a bid to minimize this gap, there arose a quest for wealth harmonization between individuals and countries hence the origin of the appeal for equitable distribution of wealth for the purpose of attaining a uniform economic growth across the globe. Much effort has been invested in this quest although always met with a lot of resistance from the high class property owners. In some instances the appeal has minimally succeeded for instance in Russia and Switzerland. The recent state of equality with regard to wealth distribution and ownership between different parties in the world has raised eyebrows as the gap between the poor and the rich continue to widen across the board. The rich still continue to earn more as the poor continue receiving diminishing wages in the world economic market. This is the state of the matter in most European countries with the exception of France, Japan and Spain with Israel, Turkey and United States mostly trapped in the vicious circle of an increasing gap between the poor and the rich. On a broader dimension, economic inequality has been majorly experienced in the less developed regions of the world such as the Indian subcontinent as well as in the sub-Saharan Africa. According to UniversityWorldNet, one of the most contributing factors to economic inequality and unequal wealth distribution around the globe is the trend and the nature of taxation in many countries which has not favored development in these regions. A progressive tax system has been adopted by most countries whereby the tax rates progressively increase as the tax base increases in amount i.e. as more money circulates in a country. A sharp economic growth often leads into an equal spread of resources across the entire population. Economists have reasoned that the tax trends in the world after the Second World War has been the major contributing factor in increasing the inequality gap between the rich and the poor countries around the globe as well as between the individual members of a state. Another factor that has hindered the achievement of equality in the distribution and ownership of wealth across the globe as argued out by Wilkinson and Pickett is evidenced in the labor market whereby the modern market economies determines the wages earned by those employed in the market. This has set about irrationality in the realms of supply and demand of different job opportunities available in the market. For instance in cases where skills are required for a particular job in a purely capitalist market, the price of the skill will be determined by its supply and demand in the labor market. Those employers who are not able to pay more for a particular skill will find their businesses diminishing as a result of employees quitting their companies in search of higher pay in more lucrative organizations. These small businesses which cannot afford paying higher wages to their employees therefore find themselves trapped at the brink of collapse as the highly productive organizations continue flourishing in the market. This has greatly contributed in widening the gap between the poor and the rich creating social classes based on income earned. Moreover economic inequality has been escalated through the rights endowed on different gender to acquire education. It is true that those that are highly skilled in the labor market, normally are the highly educated ones, and have higher chances of earning higher wages in the market as compared to those with less skills. The female gender has been the least privileged in this line. A low number of female gender has been registered in the courses that lead to high income wages most of which are more risky. This has widened the income gap between the two genders around the globe (Severine and Shahani). When the Virginia declaration stated that all men were created the same by their creator and that all have certain rights which they cannot be denied among others the right to sort for happiness, it was clearly evidenced that not all men are the same in regard. The high income earning families have higher access to better education for their children and therefore have heir children landing in high paying jobs as compared to lower income earners who have slimmer chances to attain the necessary levels required of them in order to fairly compete in the labor market. The high income generations therefore live happily as lower income ones continue to languish under the threat of poverty. The effects of the inequality in the distribution and ownership of wealth are numerous and far reaching in the political and the socioeconomic spheres. The Virginia Declaration urged that all people around the world have the right to choose a better government that can exercise fair and just rule on her subjects and even authorize citizens to rebel against any government that practices unjust rule on them. On the contrary plutocracy has been evidenced in most countries of the world whereby the rich and the wealthy have continued to influence the governments’ operations from their home backyards. In such countries therefore, there has always existed unequal participation in the decision making process whereby the rich have a louder voice compared to the poor. The bill of rights strongly brings out the freedom of expression among individuals, that each person has the right to be heard everywhere without being incriminated. The expression has however been disapproved due to the creation of social classes based on ones wealth position whereby the rich and more influential persons are involved in the decision making process as the poor are made the subjects for the rules made unknowingly to them. The increasing inequality in wealth distribution has also been a major contributor to the rise in crimes in various parts of the world. Most scholars, involved in studying the relationship between wealth distribution and crime rates have always focused on homicide. A significant proportion of these studies point out that cases of violence are higher in societies with bigger differences between the rich and the poor. Economic differences are therefore found to be significantly contributing to the increasing homicide despite the efforts to control it. The correlation which has been made in most countries using the most recent data is a clear indication that the findings are factual and more robust. Economic inequality is also of major concern in the humans’ ability to access better health and housing. This is clearly demonstrated in most of the developing countries whereby there is a clear distinction in the living conditions among the poor and the rich (Richard). Higher income earners have the ability to access better housing since they have the funds, acquire the best medical attention in the best hospitals around the world hence are entitled to a better living as compared to the poor majority. The condition is majorly evidenced in most of the African countries and in the Indian subcontinent where the rich occupy posh flats while the poor are congested in low class slum areas with poor quality housing, roads, and health facilities. The life expectancy among these different classes of people is also not the same as the rich have a higher life expectancy as compared to the poor who are more vulnerable to certain environmental, economic and social factors further endangering their lives hence lowering their life expectancy. Studies on the link between economic growth and the inequality gap have hinted that income inequality is retrogressive in the achievement of economic growth as it lowers the motivation to work and invest (David). Some scholars assert that high rates of inequality can interfere with the plans for long term economic growth as it amplifies the possibilities for financial predicament, lower investment and making it hard for governments to make tough choices when faced with tough times for instance raising tolls or administering budget cuts in order to minimize debts. The ongoing quest for economic equality is still far from being achieved given the recent debates on the same matter. Various scholars have argued that equality of any nature cannot be achieved in any ideal society as it is anti-development. According to this school of thought, this situation deprives a country of workers since people are economically at the same level as each becomes a potential employer of the other, besides other people have also argued that equality kills every aspect of cultural divide to a dominant monopolizing group of certain powerful sects, as a result the ethnic and social divisions will no longer be cherished as before. All these obstacles among others have been the major hindrances to the attainment of equality even in the economic dimension and the effects of these are far reaching in the social and economic spheres discussed in this paper. To this end, it is apparent that while there exists different plans to address equality issues in the global arena including the Universal Human Rights Declaration and the Virginia Declaration, the conventions, bills and treaties been met with a lot of resistance from the citizens themselves bringing the whole process to a halt. However with the continued efforts being mounted on the fight against unequal distribution of wealth, some hope can still be pegged on the possibility of achieving this in the times to come. When this shall have been arrived at, the many disparities existing between the poor and the rich shall be effectively addressed in order to come up with the middle ground in the achievement of the equality goal. The voice of the poor will therefore be heard and their vulnerability reduced. The living conditions will be improved for the poor populations with better health provision mechanisms laid down to help the long agonized and malnourished poor population. This can only be achieved alongside the achievement of the other equalities such as wage equality, marriage equality, gender equality among others which operate in line with the attainment of economic equality. In effect, these will give a priority to different category of people to participate in the decision making process for the issues that concerns them. For instance the empowerment of women economically will offer women an opportunity to participate fully in the global arena and earn for themselves a level of consideration in the society. Works cited David, T Rhodda. Rich Man, Poor Renter. A study of the relationship between the income distribution and the low cost rental housing . New York: Havard University Press, 1994. Richard, G. The impact of Inequality- How to make sick societies healthier. New York: The New Press, 2009. Severine, Deneulin and Lila Shahani. An introduction to Human development and Capability Appoach. Sterling: Earthscan, 2009. University WorldNet, Princeton. "Progressive Tax." Tax Increase as the Amount of the Taxable Base increases (2010): 247. Wilkinson, Richard and Pickett, Kate. "Why More Equal Societies Almost Always Do Better." The Spirit Level 9.6 (2009): 352. Read More