Economic Inequality

Economic Inequality• Is an important indicator of equity in an economy, and has

implications for other social outcomes such as crime and life satisfaction.

• The data and statistics affirm that gap between the rich and the poor has grown, rather than diminished, with sustained growth in income

• The three richest people in the world possess more financial assets than the lowest 48 nations combined

The extent of concept Inequalities refer to the uneven distribution of income across the population or individuals within society

The gap between the rich is inevitably consequence of growth and development

the high inequality raises a moral question about fairness and social justice

Statistics• Almost half the world (3 billion+) live on less than $2.50 a day• 3 of every 4 living on less than US$1/day live in rural areas• 22,000 children die each day due to poverty• For every $1 in aid a developing country receives, over $25 is spent on debt repayment• 1998 global spending

o US$17 billion on pet foods in Europe & the USo ~US$6 billion basic education for allo ~US$9 billion water & sanitation for allo ~US$12 billion reproductive health for all womeno ~US$13 billion basic health and nutrition

International Poverty Line : 2$ per day

Inequlaity in The States And Canada

• Wage inequality• Colorado minimum wage: $7.64/hour

• Denver average 2011 CEO salary: $735,979

• $353.84/hour

• Source: salary.com

• The country’s business elite – the chief executives of the top 100 companies – took home 122 times what the average worker did in 2012, up from a ratio 84-to-one a decade earlier, according to research commissioned by The Globe and Mail.

•  Inequality grew faster in Canada from the early-1990s to 2010 than in all but one other OECD country. The concentration of income in the hands of the richest 1 per cent was 10.6 per cent in 2010, down slightly from the pre-recession peak of more than 12 per cent, but up sharply from 7.1 per cent in 1982

CAUSES OF INCOME INEQUALITY IN INDIAGROWTH FACTOR

• As development proceeds, the earnings of different groups rise differently. The incomes of the upper-income and middle-income groups rise more rapidly than those of the poor, during the early stages of growth through which India is passing at present shift of population from agriculture which is a slow growing sector to the modern large industrial sector which grows more rapidly. Again, there is the capital-intensive nature of the development of the modern sector. Since this absorbs less labour, wages form a smaller proportion of total income. Hence, the income spread is not wide enough. On the other hand, the capital-intensive type of growth leads to concentration of income in those few hands who supply capital.

Social problemsin rich developed market democracies for Inequality

• Internationally comparable data on life expectancy, on kids' maths and literacy scores, on infant mortality rates, homicide rates, proportion of the population in prison, teenage birthrates, levels of trust, obesity, mental illness -- which in standard diagnostic classification includes drug and alcohol addiction -- and social mobility. in one index. It proves that the more unequal countries are doing worse on all these kinds of social problems.

Rising income inequality is a source of social and political unrest as it can lead to social discontent and higher crime rates, in turn undermining investor confidence and adversely affecting the business environment and a country's economic growth. Across a number of Arab states, high unemployment and growing inequality has fuelled political and social unrest from early 2011

Higher income inequality can also result in non-income disparities such as health and education, thus hindering a government's effort to reduce poverty. High incidence of poverty remains a severe problem in some Sub-Saharan African and South Asian countries;

A widening income gap can impede the development of a country's consumer markets as purchasing power becomes concentrated among a small elite. In Kenya, for example, the richest 10.0% of households (decile 10) spent on average 14.3 times more than the poorest 10.0% of households (decile 1) in 2011.

Crime Rate & Violence

• Tendencies for violence to be more common in societies where income differences are larger. Crime rate has also been shown to be correlated with inequality in society. There have been over fifty studies showing tendencies for violence to be more common in societies where income differences are larger. Research has been conducted comparing developed countries with undeveloped countries, as well as studying areas within countries. Higher income inequality led to less of all forms of social, cultural, and civic participation among the less wealthy. When inequality is higher the poor do not shift to less expensive forms of participation.

ConclusionEconomic Inequality is a significant social problem. The Global

recession has led to the cut of work- , children are deprived

of education because their parents have no jobs anymore. This issue

lead to theft, fraud, migration and other social immoralities which caused disorder to our society. I wish we could minimize the the differences we have in the world we live in for a better peaceful

tomorrow.

References

• Reference

• http://www.ted.com/talks/richard_wilkinson/transcript#t-647000

• http://en.wikipedia.org/wiki/Economic_inequality

• http://www.businessinsider.com/the-negative-effects-of-income-inequality-on-society-2011-11?op=1