Main Causes Of Economic Inequality

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INTRODUCTION Economic inequalities can be shown by individuals’ different positions within the economic circulation. People’s economic positions are related also to other characteristics, like whether they have or not a disability, their ethnic background, or if they are a man or a woman. TYPES OF ECONOMIC INEQUALITY: There are three types of economic inequality, income inequality, pay inequality and wealth inequality. Income inequality: Income inequality is the extent to which income is circulated unevenly in a group of individuals. By income is not just the money received through payments, but all the money got from employment, investments, such as interest on savings accounts and profits from shares of stock, savings, state benefits,…show more content…
In free market, the market price of a skill is decided by market demand and market supply. The market price of a skill, and thus the wage for the job that needs the skill, is low if a large number of workers (high supply) are willing to offer that skill but only few employers need it (low demand). On the other hand, when there is low supply but high demand for a skill, the wage for a job requiring the skill goes up. Education affects wages People with different levels of education receive different salaries [3]. The level of education is proportional to the level of skill of each person. With higher level of education, a person has more advanced skills than few workers can offer, justifying like this a higher salary. The impact of education on economic inequality is still profound in advanced countries and cities [4]. Although there are usually policies of free education in advanced nations, levels of education earned by each individual still differ, not because of financial ability but inherent qualities like intelligence, drive and personal ability. For example, in Hong Kong, 12 years of free education are provided for each citizen, not covering tertiary education, offered only when students earn specific results on public…show more content…
In democratic societies that lack public financing of campaigns like the United States, political figures need private financial support in order to run effectively the campaigns. Federal candidates during 2010 elections spent around six billion dollars. Successful candidates spent average of $10.3 million on their elections, while winning. Congressional candidates spent average of $1.6 million. While more money spent does not always result in more votes, campaign expenditures correlate closely with votes that researchers have been able to predict that for every $5 spent, a candidate will receive approximately one

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