10
Oct
Income inequality may not a problem in itself but excessive income inequality such as the kind that is worsening every day in the United States is a symptom of an inequitable system in need of correction. And that obviously isnt just a question of money.
But this problem as Lady Thatcher so famously said will not be.
Is income inequality really a problem. Second even if economic inequality is not a problem in and of itself it can still have bad effects. Great disparities of income and wealth of the kind we see in the United States today can. Economic inequality are misplaced seeing poverty as the real problem Watson2015Frankfurt2015.
This last proposition raises the question of whether there is anything about inequality in itself that is problematic independently of the fact that those at the lower end of the income distribution. The reason is not that higher income people will do worse but that lower income people in some of the poorest countries like India and China will do much better because of economic growth. If the problem we care about is poverty then the calls to tax the rich and reduce income inequality are misguided.
Instead we should be cheering for policies that lead to higher economic growth. With Democrats back in charge of Congress it is not surprising that we are seeing a revival of interest in the issue of income inequality. Second even if economic inequality is not a problem in and of itself it can still have bad effects.
Great disparities of income and wealth of the kind we see in the United States today can have damaging effects even when nobody is badly off in absolute terms. For example the wealthiest may be able to exert a disproportionate share of political influence and to shape society in conformity with their. Second even if economic inequality is not a problem in and of itself it can still have bad effects.
Great disparities of income and wealth of the kind we see in the United States today can have damaging effects even when nobody is badly off in absolute terms. In a statistical analysis of the relationship between economic growth and inequality in countries belonging to the Organization of Economic Cooperation and Development OECD Cingano finds that greater income inequality leads to lower economic growth noting that efforts to reduce inequality will not only advance social justice but may also contribute to increased economic prosperity. Economic inequality are misplaced seeing poverty as the real problem Watson 2015Frankfurt 2015.
This last proposition raises the question of whether there is anything about inequality in itself. Some people feel that inequality in itself isnt a problem as long as everyone is able to lead a decent standard of living. One problem with valuing inequality for its own right is known as the leveling down objection¹ One way to make everything more equal would be to just destroy the wealth of the very richest people and make everyone poor.
The Problem with Income Inequality Income inequality is a great danger to the American economy. Income inequality has decimated the middle class. Income inequality may not a problem in itself but excessive income inequality such as the kind that is worsening every day in the United States is a symptom of an inequitable system in need of correction.
Income inequality of the kind the United States is producing is what one finds in highly stratified class-based systems or banana republics. If it continues it could lead to a revolution and a transition to a. Income inequality is a measure of the distribution of financial resources in a society.
The United States for instance is home to an extreme gap between the haves and the have-nots. As of 2017 t he three richest individuals in that country Jeff Bezos Warren Buffet and Bill Gates own ed more wealth than the poorest half of the American population combinedthats some 160 million people. In economic terms income inequality is the large disparity in how income is distributed between individuals groups populations social classes or countries.
It is a major part of how we understand socioeconomic statuses being how we identify the upper class middle class and working class. Its impacted by many other forms of inequality including wealth political power and social. Several commentators have argued that inequality does not merit all the attention it has been receiving noting that the focus on inequality can divert attention from the real problem which is poverty.
This article reviews the arguments for and against this position highlighting the effects of economic inequality on economic growth and efficiency politics and democracy individual behaviors that result in poor health. Yes there is a problem of a large inequality gap vis-à-vis income and wealth in general. But this problem as Lady Thatcher so famously said will not be.
Nope The Evidence Still Says Income Inequality Is Not A Problem Women dont have to work to support their families houses are not more expensive college costs arent related to. Boudreaux is a professor of economics at George Mason University and he argues that while income inequality may have grown it ignores the fact that over the past 30-40 years the standard of living has improved drastically for just about everyone. And that obviously isnt just a question of money.
Its a question of access to the health-care system and of access to healthy living. Some of the inequality problem really is about some.