What Are the Effects of Inequality - Essay Example

The inequalities in the economic status of people can be related to their defining characteristics such as age, gender, and ethnicity. Numerous studies conducted by economists and researchers have analyzed in detail the trends in economic inequality in Britain and subsequently have revealed that “the richest 10% of the population are more than 100 times as wealthy as the poorest 10% of society”. (Gentleman and Mulholland, 2010).

A report published by the National Equality Panel on ‘An Anatomy of Economic Inequality in the UK’ has examined the extent to which inequality in the country has grown over the past three decades. It asserts that by the year 2007-08 the level of inequality in Britain had escalated to such heights that it had almost surpassed the one that was witnessed soon after the Second World War. The paper candidly explains how the Tories can be held accountable for this situation on account of the divisions carried out in the 1980s and 1990s. Though such a claim might offend the Labour government, it cannot be discarded as either baseless or invalid. (Hills, 2010).

Economic inequality has detrimental effects on not only individuals but also the economy and society as a whole. The individuals are deprived of their right to be treated fairly. They are robbed of the opportunities to achieve their goals and utilize their potential. It hampers the progress of an economy by plaguing it with prejudice and discrimination. It acts as an impediment to the future success of the economy by limiting its scope to draw on the talents of all participants. And lastly, it harms the cohesive structure and the smooth functioning of society by eliminating equity and uniformity which are the pillars of societal harmony. (Atkinson, 1983; Wilkinson, 2002).

The adverse impact of inequality in society and the economy makes it a very crucial issue and government intervention a necessity. According to Harriet Harman, Minister for Women and Equality: “…the government needs to "sustain and step up" action introduced by the government over the past 13 years, such as children's centers and tax credits.” (Gentleman and Mulholland, 2010). 

The policymakers should be given access to the much-needed information that would help them to frame reformatory policies. Social mobility should be the prime focus of such policies and they should coherently work towards an economy where everyone gets a fair chance.

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