Also as stated in the article, the poor and middle class are quickly falling below the wealthy, wages not increasing or weak jobs. Liberals tend to see income inequality as the disease, and conservatives tend to see it as a symptom. A symptom to means that it is up to the individual to fix it and not the government. (Goldberg, Jonah, www.thenationalreview.com). Although the government does play a major factor when it comes to income inequality, there are many other contributions in particular among racial and ethical groups that caused high... ... middle of paper ... ...s the youth very little hope for a future.
Poverty In Egypt Poverty is not only affecting poor ones but the whole society is totally affected by it. The rate if poverty actually depends on the country and its condition, the more the country is corrupted the more the poverty increases, that's why in the most developed countries the rate of poverty becomes too lower than the developing ones. Being a poor person means being deprived of the basic needs to live as a human being in any society and that's why according to human rights there should be no poor people living in earth. Although a country like Egypt is full of resources and promising market but still the rate of poverty is very depressing especially that it is in continues rising every year and with all the attempts made to stop it poverty is still one of the main problems that Egypt is facing. The reason why every country should care to get rid of poverty in it is because not only do they help the poor and needy ones but they are as well helping themselves and ensuring a better life to their children in the future.
The expand of culture diversity is an effect of globalization, is said by proponents, however, opponents say that cultural diversity will be replaced with cultural homogenization (Preble, 2010). The inequality between countries had a reduction, this cause was effected by the factors like rising trade flows, an expanding global middle class, and relatively low and stable levels of unemployment (Preble, 2010). As Preble claims that a gender gap exist worldwide, although the overall employment increase. Employment is very high for young people but the opportunities for decent work is very low (Preble, 2010). Proponents of globalization say that tougher environment rules is correlated to the progress of the economic (Hill 2008, as cited in Preble, 2010).
Thorstein Veblen would describe most of these consumptions as conspicuous consumption: products that demonstrate power but don’t contribute to the prosperity in society. This makes it nearly impossible the working poor and the middle class to intertwine within the wealthy’s inner circles to obtain upward mobility. Our text used Tom Hertz analysis and stated, “Hertz reports that children born into the poorest 20% of U.S households have a 1% chance of getting rich, which he defined as making it into the top 5% of income earners” (Sackery, Dollars and Sense 8th Edition). Another reason why inequality is bad for economic growth is it creates poor health conditions for the working poor and middle
Meanwhile, the poor live in squalor, use public transportation, and attend failing schools. Aside from the lack of a quality education making it harder to escape poverty, the poor are from birth at a disadvantage to those on the other side of the economic scale. The United States is not a land of guaranteed equality of result, that is... ... middle of paper ... ...ment and the people, more Americans can see the equality promised them: equality of opportunity. Only through community, meaning effort from both citizens and government, can inequality be resolved. No one-sided approach can rectify a situation that envelops all of society.
According to the theories, the market is full of imperfections. In capitalist markets, the cost of labor is way below its actual value as a result of an increased risk of unemployment. In such a market, poverty levels are bound to be high and can only be checked by strict regulation, for example, by enforcing minimum wages. Other barriers to breaking the poverty cycle include discrimination and social status. As Little stated, discrimination denies disadvantaged persons an opportunity to prosper.
The U.S. education system denies students in poverty the opportunities and access it affords to most other students. Without good education, most people would encounter challenges in finding income-generating work, especially when there are few employment opportunities during an economic downturn. According to Koppelman and Goodhart, merchants would sometimes exploit the poor by enforcing or formulating policies that would earn them more profits. These practices include blank price tags, bait and switch, rent-to-own and pawnshops (2007). These types of inequality and exploitation would make it harder for the low income to escape poverty.
Many of these factors include economic positions, health disparities, social and political affairs, as well as racial inequalities. A large number of low-income and minority families live in poor economic conditions. The economy is altered on account of multinational companies locating new facilities where land values and operation costs are low. Cheap lands are easily attained by polluting facilities because underprivileged communities are unable to effectively prevent such shortcomings. When companies locate their new facilities in these areas, property values decline and quality of life decreases (Mohai and Saha 2007: 345).
On the other hand, in between, poverty has been higher in the countries that had liberalized their trade regimes in comparison to countries that liberalization was happening slowly. Six years later same study has been done by George resulted that complete liberalization cold really hurt LDCs and sub-Saharan Africa’s production and employment and it can also damage environment. Full liberalization of agriculture could lead to an increasing dependence on food imports and a rise in poverty in most places. According to Feenstra 2008, trade liberalization has a significant impact on income distribution by encouraging the adoption of skill-biased technical change in response to increased foreign competition, or to the increased globalization of production. Foreign Direct Investment (FDI) flows typically follow trade liberalization and that is why the skill differential widens.
This paper empirically analyses the factors affecting income inequality in 15 developed and developing economies over the period of 1996 to 2010. Evidence from a panel dataset using an OLS regression confirms the presence of the Kuznets’ inverted-U hypothesis for developed economies, indicating that there is a negative relationship between income per capita and income inequality. The relationship between the growth rate and income inequality, is also found to be negative. In relation to education, the paper finds a significant negative relationship between the education enrolment rate and income inequality, where the effect is greater in developing economies. Furthermore, the effects of government expenditure and trade on inequality are found to be insignificant for developing economies.