The Negative Impact Of Income Inequality In Thailand

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Income inequality is the “defining challenge of our time”, with a higher number of people struggling in work just to get by with pay no more than what they receive a decade ago, while some unemployed due unequal opportunities that exists as said by current president of the United States of America, Barrack Obama (Warren, 2014). “A State divided into a small number of rich and a large number of poor will always develop a government manipulated by the rich to protect the amenities represented by their property.” (Laski, 1967, p. 157). This can be applied to Thailand where poverty in Bangkok is at an all time low of just 1% while more than a fifth of the population in the North and northeast are poor (Zachau, 2013). Thailand would be a better nation if people have the same opportunities and were treated the same way. This could be achieved if the Thai government legislates to distribute income evenly as it will help the economy to grow, increase opportunities and social status of the lower class.
To start with, income inequality has a negative impact on economic growth, when the majority of the income is in the hands of the few they tend to make political and economic decisions for their personal benefit, which would lead to misallocation of human resources by the poor, for example lower income families may decide to drop out from school if they can’t afford the fees despite the fact that the rate of return to them and the economy is high. The under investment by the poor

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