Rich And Poor Repercussions Definition

This research paper will examine the repercussions of the widening gap between the rich and poor in many parts of the world. There are many repercussion of the widening gap between the rich and poor. The repercussions which are being discussed in this report are increase of crime rate, the economy growth of the country and political inequality. In this report these three repercussions has been examined and explained. And examples has been given from different parts of the word such as India, US, Japan and many more. These three repercussions are linked in one way or the other. Due to the increase of crime rate and political inequality in a country the economy of the country would be affected. And there are many consequences to it too. For

10% of the richest population earns 9.6 times the income of the poorest 10%. Due to this it was inferred that income inequality is statistically negative impact on the growth of the economy. For example, according to the Organisation for Economic Cooperation and Development (OECD), due to the widening gap between rich and poor in the two decades after 1985 removed nine percentage of UK growth between 1990 and 2000. If the gap was reduced the economic growth would be nearly 0.3 percentage with a gain of 7% in GDP. The OECD warns that such inequality is a ultimatum to economic growth. OECD states incorporate the majority of the European Union and also created economies, for example, the US, Canada, Australia and Japan. One of the components that the OECD in what it calls non-standard work, which incorporates brief contracts and independent work.The OECD says that since the mid-1990s more than half of all job creation in its member states has been in non-standard work.It additionally says that assessment and advantage frameworks have turned out to be less viable at redistributing pay. The primary hypothesis the OECD advances for why disparity and development are contrarily corresponded is that poorer individuals put less in their own particular instruction and self change - which is the reason its principle hostile to imbalance solutions are government interest in aptitudes and training, and an attention on an

There are many other repercussion. But in this report 3 main repercussions has been examined and explained.They are political inequality, economic growth and rise of crime rate. There would be many other repercussions if the income inequality does not decrease. And this would also not give equal opportunities. This would lead to unhappiness. Hence by reducing the gap between rich and poor, it might benefit the country