Income Inequality Income Inequality or “wage gap” is a big topic for freedom fighters and liberals for the simple fact that it isn’t equal for everyone. Because the wage gap is so prominent it's one of the biggest “facts” that discrimination is still apart of everyday American society. The wage gap from these radical interest groups think the economy is get a dollar take a dollar instead of a free flow economy. This misguided idea of the economy is absolutely not true and isn’t at the fault of the Government, but the people.
Politicians fear that if they abolish Negative Gearing as was done for a short period in the 80’s there will be a destabilisation in the rental market pushing up the cost of rent. However as can be seen now, this would not be the case, the only reason rents slightly rose in Sydney and Perth exclusively was due to economic and population growth and the fact that there weren’t enough houses being built in the years previous. It also must be noted that 92% of houses that claim negative gearing do so on existing properties, which mean they do nothing to benefit individuals who want to fulfil their own Australian dream, by purchasing their very own home to raise their family in, but instead overinflate demand for properties, creating an artificial property market in which is being propped up on unsustainable holes in the Australian
In Chapter 1, Rich Nation, Poor nation of The Economics of Macro Issues, the author first identifies the common misconception that economic advantages are predetermined by the natural resources made available to that country. Economic growth is developed by political and legal institutions. Stable institutions are detrimental to the success of the economy because they provide a sense of security for investing. These investments raise capital stock and promote long-term growth which leads to a higher standard of living.
It seems as though Australians are fearful, but what of? We appear to be nervous of controversy but our evasion of important issues may be our undoing, as we become known as a nation of prejudice and ignorance. A misplaced ignorance considering Australia has an extremely well developed educational system, yet a vast majority of the population seem immensely ill informed. Our educational proficiency proves that contemporary Australia is capable of overcoming the sexism, homophobia and racism present within our society but only if we chose to pay attention.
The main purposes of financialization are to make the financial sector more economically powerful than the real sector, to take money from the real sector and give it to the financial sector, to make income inequality greater, and to increase wage stagnation. Other possible financialization risks are debt-deflation and recession prolongment. In order to prevent financialization, the government must regain policy control over the market, force corporate responsiveness to stakeholder interests in more ways than just via the financial market, combat the neo-liberal economic schema pushed by financialization, and force political reform allowing for prevention and diminishment of corporate, political and financial elitist influence (Palley,
The New York Times states, “Employers do not automatically cope with a higher minimum wage by laying off workers or not hiring new ones. Instead they pay up out of savings from reduced labor turnover, by slower wage increases higher up the scale, modest price increases or other adjustments” (4). It would not make sense for businesses to raise prices for consumers because the possibility of losing sales is very real. That argument, that raising the minimum wage would hurt consumers, just furthers the negative sentiment people have towards this topic. Numerous studies have shown that employment increases from the state and federal level had an overall positive effect on employment (Whitaker et al. 631).
Working Disincentives The previously discussed working incentives which would occur with the introduction of a guaranteed minimum income, are challenged by the beliefs of Preston and Haywood. By taking into account the major increase in taxes, one can argue that the average and marginal tax rates will also increase. This will lead to the work disincentive, as recipients retain far less of any additional dollar that they
The American Dream is Alive The American dream is part of the American psyche and in order to keep it alive, there is need to save and plan for the future which is only possible through savings and enacting of policies which will see to it that there is sustainability in economic growth but it is also important to interrogate some of the factors that affect its viability. Is it a state of the mind and something that is being used to cloud the actual failings of the state in providing a conducive environment for citizens to prosper? One thing that has always been ignored is the element of non-economic components that might lead to a person not making it into the middle class (Shapiro). It is assumed that having ‘drive and ambition’ are enough
In Conclusion, Reducing global inequality is by no means an easy task. Several options and alternatives have been proposed by both Piketty and Milanovic. While Piketty focuses on the economic aspect, he fails to provide elaboration over the political side of the issue. Milanovic, on the other, does recognize politics. One thing is for certain, if these challenges continue to go unaddressed, they are likely to reinforce the future’s level of economic
Their arguments based on the economic needs of the Americans are driven by their political ambitions rather than a radical position on important political and leadership matters. As the Republicans seem to be more radical about addressing the economic needs of the people today, they will be forced to apply the same level of aggression in addressing climate change concerns. Putting a price on carbon emissions, the preferred prescription of economists across the political spectrum, could fit well within the Republican canon (Porter). It may cost the United States today, however, it will help to create a long-term economy that guarantees productivity for the current and future generations. In light of this internal party division and indecisiveness over the issue, it is important to put political ambitions and interests for the greater good of the country and the citizens of that country today and in the future.
If interest rates increase, it will become attractive to invest money in that country because investors will get a higher return from savings in that country’s banks. Therefore the currency demand will rise. But higher interest rates will have a negative impact on the country. This is due to the reduction in purchasing power of the consumer while the loan borrowers have to pay more interest.
The idea of relying on individual states to offer a certain amount of taxes, without consequence to those who did not, was ludicrous. The Government was left unable to pay its foreign debtors which caused concern with those worried