Economic Inequality Essay

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Inequality can be traced as far back as possible. It can also be described as disparity. This disparity can be in terms of income, wealth, class etc. Economic inequality can be described as the disparity between income of individuals or household within and outside a country. When “income inequality” is mentioned, most people think about it in a within the country context, but in a world that is becoming more integrated, economic inequality between countries is becoming more relevant. In a world where other people’s income and wealth affect our perception of life, one might ask the question, “is economic inequality the biggest issue of our time”. The history of economic inequalities between countries can be traced back to the 18th century and has taken different forms since then, especially, in the 19th century till date. Firstly, the Lorenzo curve. This is a model use for measuring inequality. It was developed by Max Lorenz in 1905. The Lorenz curve is usually in a form of graph on which the cumulative proportion of income is plotted against the cumulative proportion of population on the in which their axes ranges from [zero (0) to one (1)] or [0% to 100%]. The Gini index, another method of measuring inequality is derived from the Lorenz curve. The Lorenz curve is shown in the graphical illustration (figure 1) below. The first calculation of inequality across world citizens were done in the early 1980s (Berry, Bourguignon and Morrisson, 1983; Grosh and Nafziger, 1986). This is because in order to calculate global inequality, one needs to have data on (within country) national income distributions for most of the countries in the world, or at least for most of the populous and rich countries. But it is only from the early to mid-... ... middle of paper ... ...5) is shown below. Above are the steps (faster growth of smaller countries, global redistribution and 21st century trilema) that makes up part of future possibilities of global economic inequality. If A and B, then no C. Migration is the outcome of current unequal globalization. If B and C, then no A. Unequal globe can exist if people do not know much about each other’s living conditions or costs of transport are too high. (Milanovic, 2011, p. 56) If A and C, then no B. Under globalization, people will not move if income differentials are small Described above, is the economic inequality between countries. Points explained under this topic include the history, current information, trends and its future directions and with these points explained above, one might still ask, “is economic inequality the biggest issue of our time?” and if so, how can we solved this?.
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