Income Inequality And Economic Growth Essay

In the story “The Upside of Income Inequality”, Gary S. Becker and Kevin M. Murphy effectively express’s the importance and need for income inequality in our society. Furthermore, Holly Ellyatt’s newspaper article Income Inequality: Is It Good For Everyone? serves to also point out that economic success and greater productivity is linked to “income inequality”. Although it may seem extremely unfair for someone to make up to two hundred and fifty times as much money as someone else, this notion of “income inequality” actually benefits the society as a whole by encouraging others to work much harder in life and better themselves and their education. For example, the increase of income inequality in the 1980’s greatly increased the education for both women and men and other races such as African Americans.

Ever since the Great Depression, the minimum wage has been in effect — in order to reduce poverty and solidify that employees are paid a reasonable sum. Although the minimum wage can be beneficial and advantageous for individuals and to our economy as a whole, it can also be detrimental to our nation’s finances. The federal government should not allow this to pass, but rather they should increase the citizens’ knowledge of the pernicious consequences and complications that will arise with a higher minimum wage, especially one as high as $15 per hour. Some of the resulting conflicts that will occur if this possible raise in the federal minimum wage takes effect are: job loss, business failure, higher consumer prices, and a lower demand for uneducated employees. Although it may appear as if increasing the federal minimum wage will help to lift families out of poverty, in

In Born Poor and Smart, the author feels that he is not worthy of success because of the inequality of class. In When Shelter Feels Like a Prison, the author has not been able to live a normal life due to the inequality of income. In A Great Time to Be Live, the country has to have their eyes on the rich tax to reduce the income inequality. As a result, inequality does bring a negative influence on society. For the growing children, the impact is far more far-reaching.

There should not be an increase in minimum wage because it is unhealthy to the economy in the long run and it will be the major cause of job loss, increase in inflation, competition, and the price level of goods and services. Many argue that an increase in minimum wage will help guide low skilled workers out of poverty and assist them into having a better career. That is not necessarily true, Many economists can agree that minimum wage jobs such as cashiers, host or a hostess are not jobs that meant to support a family. If anything by raising the minimum wage, it will put more people in poverty than guide them out of poverty. A raise in minimum wage will cause loss of jobs, an increase in the inflation rate, increase in

Neoliberalism is the main cause of the difference between the rich and the poor in the states. It expanded the market efficiency by competitions between individuals, raised a gap between the rich and the poor. Rich people are becoming much richer based on their original properties while poor people are becoming poorer and suffer great economic problems in their lives. This does not only happen between individuals but also between companies. The unemployment rate increased because of neoliberalism.

Some say that raising the minimum wage will lift people out of poverty and provide a higher standard of living for everyone. Others believe that doing so would damage the economy and result in the loss of jobs. Raising the minimum wage would be detrimental to the economy, because it would create many problems for businesses and the free market. Raising the minimum wage would have a negative impact on the quality

The long term effect of the income equality can affect the economic growth of the country. This might also affect the education level and the lifespan of the people of the country. The income gap suppresses the economic growth as well as the job creation which makes the recovery of the country not so visible. The education level of the people of the country is also affected by the increase in the inequality of the income and this eventually affects the economic growth and the development of the country. The social life and the conditions of the people are also affected by the rise in the income inequality of the people of the country (Hargreaves,

Such challenges are unemployment, a widening income inequality as well as a skill gap. These are also cognizant of the fact that some inequalities are unavoidable in any free society. Factors such as dreams, talents and goals also play a major role in how people analyze their ability to scale up the economic ladder. When an individual works hard enough, they should be in a position to improve their lives (Shapiro). Despite all these variables, it is of note that a person’s zip code should be a condemnation on the increasing inescapability of economic fate.

Without the support of the bottom 99 percent, democracies will lose their functionality. Democracies around the world are based on equal opportunity; the growing income disparity threatens to erode that foundation on which our society is built. Income inequality is an inevitable characteristic of a capitalist market economy, but the rate at which the income gap has

This kinds of social costs embraced as the result of the irresistible demand for economic growth, by sometimes sacrificing both the workers and the environment. The economic theorist called it as the concept of negative externalities (Barca, 2012), which entrepreneurs change the real cost of human and environmental health and safety into the third parties. Kapp ideas on the social cost and the natural behavior of entrepreneur enhanced as the fundamental of the upcoming theory, named as Ecological Economics. It is considered as the radical non-orthodox discipline because of it declining the idea which unlimited economic growth were the only possible answer for poverty (Barca, 2012). However, Salleh (Salleh, 2010) stated that the cost of production for industrial and Meta-industrial workers along with the public health is not highly as the main concern of ecological economist.