The Repercussion Of Poverty

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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…show more content…
Getting proper education and employment would be more difficult for the poor than the rich. Hence, the poorer people resort to lawless activity and violence such as robbery, theft and kidnapping. 55.6% of juvenile offenders in India belong to families with annual income of less than Rs 25,000. If the gap widens, the crime rate would definitely increase as they have to find a way to survive in their county. There was a 10.5% increase in offences carried out by children in 2011. Such as counterfeiting went up to 81.1%. Another common crime is burglary. The imbalance of available resources is marked by the lack of space, shelter, food and basic facility for the rising population leading to competition, competitiveness and in turn insecurity. Due to the clear manifestation of this insecurity is the cause of the rise in crime in cities. The biggest irony of the present times is that, cities that attract economic power and support growth are now the pivot of crime and violence which drastically exhausting development. Tourism is economically important in India. If there is high crime rate in India tourist might reconsider going to India. This might then affect the economy of India. This brings us to the next…show more content…
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
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