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Rising Income Inequality

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1. Background Information on Rising Income Inequality The problem of rising income inequality is a global problem which is faced by the people of almost every country. The inequality in the income of a nation also affects the economic condition of the nation. The economic performance of a nation should not only be focused on the overall income growth, the income distribution should also be considered.The income of the people includes revenue streams such as wages, salaries and dividends from shares of stock, interest on saving account, rent and profits from selling. The income inequality is the level to which the income is disseminated in an uneven way among a population (Inequality, 2017). The differences are there between the wages or the …show more content…

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, …show more content…

It can be suggested to the people who have the authority related to this area that the minimum wages should be increased in the country, the taxes on the incomes of the people with super-high incomes should increase, removal of the tax loopholes, the strong incentives should be provided to the people and the organizations for inner-city job creation, capping of the pay of CEO and the laws should be strengthened on the areas such as compensation, nondiscriminatory hiring and promotion practices for the women and minorities of the country. Through these steps the effect can be diminished and the inequalityin the income of the people of the country can be reduced in the long run (Ferro,

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