Causes Of Inequality In The 1980s

835 Words4 Pages
Inequality issue is one of popular debates at last decades. When we look at the statistical data about share of income per years, we can say that inequality has started to increase between 1980-1990. For example; in 1980 top %1 share of income was %8 in USA, %6 in Ireland, %4 in Sweden, %6 in Italy, but in 2008 these rates increased to %18 in USA, %10 in Ireland, %7 in Sweden, %10 in Italy. Jump in inequality is obvious according to our data. Always there are fluctuations in our graphs, but all fluctuations have own reasons such as world wars, depreciations and crises. Therefore, the question should be asked: What happened in 1980s, and why has inequality started to increase in our world?
Now, if we take a look at political and economical situation in 80s ' world; there is no huge financial crises, oil crises gone over, Iran-Iraq war erupted that had some outcomes for oil market but that wasn 't important as oil crises, neo-classical approach became dominant opinion in economics therefore open door trade supported strongly by economic authorities, at the same time USSR lost the war in Afghanistan and collapsed in a few years, it means the decay of socialism. In brief, we can say that liberalism shone and socialism collapsed in 1980s. Therefore, inequality started to increase in 1980s and rally in 1990. These events have affected income inequality. However, how can these occurrences cause increase in inequality?
The answer is "Globalisation". After 1980, governments
Open Document