Why Does Income Inequality Exists - 1427 Words

- - - â€Å"WHY DOES INCOME INEQUALITY EXIST?† Submitted to: - Submitted by: - - - - 4. Why does income inequality exist? Income inequality, also known as economic inequality or wealth and income differences typically refers to inequality among individuals and society, but it can also refer to disparity among countries. There are many reasons for this phenomenon to happen within the societies, most of them are often inter-related. However, we could say that the most important factor that causes greater income inequalities are wages and salaries. The determination of wages by the market is a major cause of economic inequality. Wages work in the same way as price and by applying the law of supply and demand, the wage is determined by the†¦show more content†¦The next factor is related to the culture and gender issues. Diversity of preferences within a society often contributes to income inequality. For example, two equally capable individuals with identical earning potential might choose different strategy and paths to earning income; accordingly there would be an income differences. The trade-o ff between work and leisure is also important. One might choose to have more work which means less leisure for them while the other might choose the contrary. When equally able individuals undertake risky activity such as starting a new business, some succeeds and some fails; and the presence of both successful and unsuccessful feat in the society results in economic inequalities even though the individuals are identical. We have also encountered other acknowledged factors that impact inequality in income which includes: policy reforms, development patterns, economic neoliberalism, inflation, mobility, rising proportion of urban household and age distributions. These many reasons and factors all contributes and explains how and why economic inequality existed and still existing, either they are due to cycles in the market, voluntary actions orShow MoreRelatedWhy Does Income Inequality Exists?1442 Words   |  6 Pages- - - â€Å"WHY DOES INCOME INEQUALITY EXIST?† Submitted to: - Submitted by: - - - - 4. Why does income inequality exist? Income inequality, also known as economic inequality or wealth and income differences typically refers to inequality among individuals and society, but it can also refer to disparity among countries. There are many reasons for this phenomenon to happen within the societies, most of them are often inter-related. However, we could say that the most importantRead MoreWhy The Income Inequality Affects The Health Of People Essay1695 Words   |  7 PagesIncome inequality also causes obesity however; we mostly blame individuals for being obese. Being obese can have a serious impact on mental and physical health. it is an illness that is associated with stereotypes. The biggest one is â€Å"if poor people become obese they cannot be not poor†. People in this mentality also exclude the structural and social conditions that cause illnesses such as obesity. Social life affects the health of people, especially the socioeconomic level. How much you earn monthlyRead MoreMicroeconomics : Income And The United States1702 Words   |  7 PagesMicroeconomics: Income Inequity in the United States No matter which country you would look into whether it’s from wealthier to those less wealthy countries through the eyes of economics, there are bound to be types of inequity within their borders. Inequity is a very crucial problem in the United States, you would think that our economy here in the states is booming, and the citizens are living life easy or without worry. Life is the United States isn’t as it seems, in fact, Inequity is in factRead MoreThe American Dream1560 Words   |  7 Pagesof the economic inequalities in the country and the world. People protested the â€Å"1%†, the top group of wealth owners in the country, and aimed for equality. The media even started to show the inequality between the 1 percent-ers and the rest of the population. The gap between the mega-rich and the rest clearly exists, but people rarely talk about the gap between gender, races, and all the inequalities at all levels of wealth. It is important to understand that a wea lth gap does exist between the richRead MoreThe Ambiguity Of Income Inequality1143 Words   |  5 PagesThe Ambiguity of Income Inequality Pundits say that income inequality has been one of the greatest downturns of our country’s growth and development, however a puzzle exists where economics and politics meet that does not make the solution to income inequality easy to find. Political leaders, economists, and bankers all agree that policies have appealed more to the interests of the governing class than those of the ordinary people. The comments surrounding this topic mostly stem from the strongRead MoreGlobalization Effect on Pakistan1531 Words   |  7 Pagesadvantage. For some other nations, globalization has not had such a positive influence. In certain parts of the world, it has led to a worsening of the economy, exploitation of labour, decrease in local production and worst of all, an increase in inequality. Pakistan is a developing country neighboring India and China. It is the 6th most populous nation in the world and has a population density of 212.4 people/km2 (MEAS 2010). It is made up of 4 provinces, each of which speaks different languagesRead MoreFinancial Gaps in Mexico and The Pearl by John Steinbeck756 Words   |  4 Pagesdiscussed in this paper (i.e., â€Å"To what extent is this financial gap in Mexico?† â€Å"Why does this gap exist?† and â€Å"What could we have done to prevent this gap?†) provide a basis of understanding of this topic. Although The Pearl was written in 1945, this paper will be focusing on these issues in present-day Mexico. The first goal of this paper will be to analyze the extent of this gap in Mexico. Economic inequality has become so apparent that poor criminals are kidnapping wealthy citizens for sumsRead MoreIs Inequity A Big Problem? The United States?1714 Words   |  7 Pagesa decent paying job. That is why throughout this paper I’ll be discussing why inequity is a big issue in the United States from how income is distributed through causes of income inequality, social status, and even how the government interventions is trying to alleviate income inequity. What is income inequality? First we must define what exactly income inequality really is and that is according to Definition of ‘Income Inequality’ (2015) said to be unequal income distributed to household or individualRead MoreCapital Analysis : Capital And Income Inequality Essay1743 Words   |  7 Pagesthe Twenty-First Century is written for all Economics scholars and Econ major students all over the world. Since the book is mainly talking about the wealth and income inequality in the United States and Europe since the 18th century, it is a great reference for scholars who is writing papers about wealth distribution and income inequality. In addition, since the book was announced to be made into a documentary movie, it will be an original reference for those who are interested in the movie. ThomasRead MoreWealth Inequality in the US with Sociological Viewpoints Essay1102 Words   |  5 PagesWhat is wealth inequality? â€Å"It is the difference between individuals or populations in the distribution of assets, wealth or income.† [1] In sociology, the term is social stratification and refers to â€Å"a system of structured social inequality† [2] where the inequality might be in power, resources, social standing/class or perceived worth. In the US, where a class system exist, (as opposed to caste or estate system) your place in the class system can be determined by your personal achievements. However