Increasing Gap between the Wealthy and the Poor Free-Samples

Question: Discuss about the Increasing Gap between the Wealthy and the Poor. Answer: The increasing gap between the wealthy and the poor The issue of increasing drift between the rich and the poor is pressing because it is directly proportional to the number of rich and poor people in society for many decades now. The scenario is astonishing because the figures between the wealthy and the poor are not proportional. Notably, the inequality between the rich and the poor exist is heightened by accumulated wealth of an individual or a group in society (Gap between rich and poor 'keeps growing' - BBC News, n.d). Also, disparity can be realized between countries whereby one country is endowed with too many resources which it is able to utilize to boost the economy especially the developed countries. On the other end of the spectrum, the developing countries are impacted with poverty because of economy struggle and lack of adequate resources. Therefore, income disparity is a threat that has been in existence and will still exist. The increasing gap between the reach and the poor is a global problem that almost all the presid ents of big nations have not still realized its cure. Furthermore, this is a universal problem that cuts across both the developed and the developing countries. As much as economic growth is realized, income disparity is a common phenomenon in most parts of the world. According to this article (The Real Reason for the Growing Gap Between Rich and Poor, n.d), technology is a double sword that is forming the basis of increasing disparity among the citizens of America. Technology has brought a great impact on employment. Remember, technology has led to the retrenchment of people from their places of work. Responsibilities that low skilled people were used have now been replaced by use of computers or integrated systems which have rapidly rendered people jobless. A country like U.S uses telecommunication systems to source workers from other foreign countries with cheaper labor cost than the native citizens. The implication for cheap labor is that many workers will be chasing view wages which will lead to poor salaries (Morris, 2015). On the other hand, technology is boon to those skilled people from the fields of engineering, law and computer science hence it acts as a complement to their skills. Such people attract high demand for their services that results to competitive salaries thus widening the disparity gap. Also, the issue of gender has brought about the disparity in the income in the sense that in most countries some jobs are meant for men while others are solely designed for ladies however most governments have enacted regulation and rules to fight for gender equality in the society. Inequality comes as a result of men taking well paying jobs such as CEO of the company while the ladies are given lower position in the workplace. More specifically, a place like India, it is known ladies have their specific job in the society as well as men. The Indians have a culture that a woman cannot do a more earning job or a white collar job while her husband is doing a low job in the society (Lau,2008). Therefore, this implies that if couples are born in a poor family, they will be forever poor, whilst if couples belong to a rich family they will be forever rich. In that case, the drift between the people of the social class will remain. Notably, globalization is a contributing factor to disparity because s countries strive to influence international customers and gain a large market share they tend to bring disparity (Bergh et al.,,2016). It is a bit technical to understand this but simply put, countries would like to do business with other countries that are of the same level like they are endowed to the same economic advantage. Therefore, rich countries would like to associate and do businesses with reach countries and vice versa. More often than not, disparity is brought about by the difference between wages and salaries of individuals in the society. The article (Why the Gap Between Rich Poor Is Widening - Salary.com, n.d.) depicts, in most countries, the level of education and expertise skills determine the salary of an individual. Therefore, those people who have acquired knowledge to higher education learning tend to secure well-paying jobs white collar jobs) that attract better salaries. For instance, in China, out the total population, 10% are the richest and are 9.6 times rich as compare to those people with low income. On the other hand, people who are non-skilled or low skilled or dropout will accept to offer cheap labor just to sustain them. Therefore, there is no day equilibrium can be established between the two types of people. For this reason, the gap will still exist because people accept this culture and are ready to maintain the status quo. Besides, in U.S the current rate of tax favor the rich. The tax rate structures have been perceived to favor the rich people. According to this article (Income inequality, 2014), the Bush tax cuts enacted in 2001 and 2003 lowered the marginal tax for high-income earners from 36.9 percent to 35 percent. As a result, the action brings is a disadvantage to low-income earners because the wealthiest will have a large take away because of the reduced tax as the poor face the wrath of the imposed rule. In another perspective, reducing tax rates gives freedom to the top earners to fight for more compensation. Ultimately, this will lead to further widening of the gap between the poor and the rich. Apart from market-driven factors, Lau (2008) argues that there is a remedy for the increasing disparities. The implementation of specific rules will create equality among people of all ages in society. The government can increase the education supply to citizens that will translate to skilled labor. In this case, the government can implement policies that favor and provide education to all either provide education at a cheap fee or give subsidies and supply enough equipment to educational institutions. In the long run, education will be accessible to all citizen hence people quagmire of education differential will be stopped. Consequently, the labor market will be supplied with learned people with almost the same skills hence salaries will be sliced to fit all of them. Therefore, the issue will be curbed upon implementation of such policies. Arguably, if the government can implement a progressive tax structure, the proportion of the disparity will subside (Bergh, Nilsson Waldenstro?m, 2016). The progressive tax structure will impose high tax on the wealthy people as their will be low tax among the poor. Therefore, the poor will have a privilege of benefiting from low taxes hence the income inequality will be reduced in the society. Such a remedy is prevalent especially if it is implemented as a long term project. Also, legislations like formulating policies such as raising the income of low income of the poor will help to reduce the gap between the people of different social class. Introducing minimum wage legislation policy helps to curb problems of income imbalance in the labor market. Besides, the government can opt to offer subsidies to the manufacturing firms which will translate to low product costs. By providing goods and services at cheap prices, the poor will be able to afford the product hence increasing the purchasing power of poor members of the society. In conclusion, the answer to the increasing disparity is not found in prevailing market labor but the situation can be reversed if the government will collaborate with relevant bodies to make fundamental changes in the current system of distribution of wealth. Equality can be realized by changing the rules of the market such that the average income people are given the advantage of bargaining power hence the poor will benefit from such schemes of economic growth. In another perspective, the government can work to introduce some policies to bring equality like formulating minimum wage legislations, making education cheap and available to all, and introducing a progressive tax system are among the strategies that can reduce the gap existing in social class. References Bergh,A., Nilsson,T., Waldenstro?m,D. (2016).Sick of inequality?: An introduction to the relationship between inequality and health. Gap between rich and poor 'keeps growing' - BBC News. (n.d.). Retrieved from https://www.bbc.com/news/business-32824770 Growing Gap Between Rich and Poor. (n.d.). Retrieved from https://www.boundless.com/sociology/textbooks/boundless-sociology-textbook/stratification inequality-and-social-class-in-the-u-s-9/social-mobility-76/growing-gap-between-rich-and-poor 450-2081/ Income inequality. (2014).Inequality. doi:10.1787/459aa7f1-en Lau,O.C. (2008).Mind the (gender) gap: Institutions, inequality, and individual freedom. Morris,P.A., Hill,H.D., Gennetian,L.A., Rodrigues,C., Wolf,S., University of Wisconsin--Madison. (2015).Income volatility in U.S. households with children: Another growing disparity between the rich and the poor? National Symposium on Family Issues, In Amato,P.R., In Booth,A., In McHale,S., In Van,H.J. (2015).Families in an era of increasing inequality: Diverging destinies. The Real Reason for the Growing Gap Between Rich and Poor. (n.d.). Retrieved from https://www.newsweek.com/real-reason-growing-gap-between-rich-and-poor-377662 Why the Gap Between Rich Poor Is Widening - Salary.com. (n.d.). Retrieved from https://www.salary.com/why-the-gap-between-rich-poor-is-widening/slide/5/ Wolff,E.N., Twentieth Century Fund. (1996).Top heavy: The increasing inequality of wealth in America and what can be done about it. New York, NY: New Press.