An attempt to explain the relationship of changing wealth inequality over time, with respect to class and race. The basis for this concept, begins with the causes of prejudice. While there are many causes that relate to prejudice, the context ... ... middle of paper ... ... be said about the overall effects of wealth inequality? As supported previously, income inequality among different racial groups will be more intense than if it were solely based on the changes in class income inequality. This is because minority groups are affected by racial inequality in addition to the affects of class.
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.
When talking about inequality of income distributions within the society, it is inevitable to talk about how it relates to the process of economic development. About more than half a century ago, Simon Kuznets made his hypothesis on the relationship of the two and it was presented as an inverted U-shape curve—the Kuznets Curve. The pattern of the inverted U-shape intuitively indicates the timing characteristic that the inequality increases in the initial stages of development then decreases at the higher level of development. Later on the stylised fact has been formalised by numerous of studies that proving its validity and implicating in modern societies. Certainly there would be some skeptical opinions as the conjecture was based on scanty data, but the reasoning model Kuznuts built is considering an empirical regularity.
(2014). 11 facts about global poverty. Retrieved from http://www.dosomething.org/tipsandtools/11-facts-about-global-poverty Olinto, P., Beegle, K., Sobrado, C., & Uematsu, H. (2013). The state of the poor. The World Bank.
Making them understand the effects of capitalism and migration in certain countries. Personally, I know that immigration is a key portion of social inequality because in many cases immigrants make up a huge part of the citizens in poverty. Capitalism is also one of the main reasons why there is poverty because with capitalism only the wealthy are receiving money and the poor are the only ones working, but not earning. In the article, it also mentions how globalization and capitalism are both linked together. “The benefits of globalization have been unfairly skewed towards a privileged elite, a trend that leads to lower global growth…”.
14 Feb. 2014. Timberlake, Richard H. "Federal Reserve System." The Concise Encyclopedia of Economics. 2008. Library of Economics and Liberty.
This means that the inequality of income within a country is a smaller problem compared to the inequality of income between nations. People are coming up with three categories to classify the levels of income inequality between different countries around the world. This category focuses on the economic development of each country. They are the high-, middle-, and low-income countries. Since the income inequality occurs in every country in the world, people are coming up with a question about the effect of the income inequality.
Retrieved November 28, 2013, from http://www.indexmundi.com/g/r.aspx?v=74 Thomas Carroll & Associates. (2013). Income Inequality. Retrieved from http://www.thomascarrollandassociates.com/economic-inequality-chapter-10.html Maxi-pedia. (2012).
Business & Economic Review 49.1 (2002): 27. Business Source Premier. Web. 19 Jan. 2014. Stokey, Nancy L., and Sergio Rebelo. "Growth Effects Of Flat-Rate Taxes."