Income Inequality And Economic Growth Essay

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Does income inequality harm economic growth? We live in a world where social class impacts both our economy and social life. Some people believe having unequal incomes lead to inequality, thus hurting the economy growth. While others claim that having different incomes pushes the ones making a low one to be better off, eventually making a high revenue, and wakens the rich to maintain their status and income. Which means benefiting the economic growth. There are several reasons to consider income inequality harming economic growth. First, the strongest mechanism that affects the growth of the overall economy is lack of education opportunities. Knowing that people whose parents are poor do not have the means to educate their children and end up in low-quality schools, which reduces skills and development in society. While those who come from…show more content…
It is human’s nature to strive for a better life and compete with each other. If we live in a society that promises us nothing but an equal income no matter how hard we work, the motivation factor would die which will result in a lazy environment. Contrary when people see others achieving their goal dreams and earning high incomes, they get motivated and work harder. Having a strong skilled labor force raises the employment rate and reduces inefficiencies. this indirectly impacts the economy because human capital is one of the strongest factors that contribute to the economic growth. To conclude, Income inequality has been a great debate between economists and different arguments have been discussed for both sides, but I believe that inequality is such an interesting phase for growth. Without it, productivity will not take place allowing benefits for different social classes and creating strong incentives for an overall better economy and social
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