...Globalisation has intensified inequality Globalisation has built a set of prospects for mainly large firms around the world with declines in tariffs or creation of free trade areas (Celik 2010). Although globalisation has increase economic growth substantially it does however also increase the economic and social gap within and between countries. Income inequality in particular is the effect of globalisation through foreign direct investment. According to the World Development Indicators 2005 (World Bank, 2005), the richest country Norway has a per capita income of $43, 400 whereas the poorest countries Burundi and Ethiopia have a per capita income of $90. These show the huge gap between the poorest and richest countries per capita income. These numbers raised the question “Has globalisation led to a greater income inequality or less?” In the article ‘Is globalisation reducing poverty and inequality’, Wade (2004) questions the empirical basis of the neoliberal argument. The neoliberal argument says that the distribution of income between the entire world’s people has become more equal over the past two decades and the number of people living in extreme poverty has fallen. It states that these progressive trends are due in large part to the rising density of economic integration between countries, which has made for rising efficiency of resource use worldwide as countries and regions specialize in line with their comparative advantage. This is partially true as...
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...What causes socio-economic inequality? By Briana Whetston Sociology 101 – 008 Department of Accounting University of Wisconsin Eau Claire, WI 54701 What Causes Socio-economic Inequality? ABSTRACT This paper will look into the reasons of socio-economic inequality of individuals throughout society. The expansive framework of this theme is our class discussion on Stratification. Countless people think of socio-economic inequality specifically as social class. Although this is a part of it, there are many other factors such as gender and racism that contribute to this matter. Furthermore, the overall thesis for this paper is that the causes of socio-economic inequality are caused by more than solely economic factors. The arguments that will support this thesis will be: 1) Gender inequality in the workplace; 2) Discrimination towards age and race 3) Unequal access to education and power; and 4) How the social behaviors of members of society, through forms of discrimination, affect the attitudes of others. This topic has a social relevance, being that countless people around the world are affected by socio-economic inequality. I INTRODUCTION A study done on national income distribution shows that families in the top twenty percent are making 47.2 percent of the nation’s income, while the bottom twenty percent are making only 4.3 percent of it. Correspondingly, ten percent of households in the United States own 68 percent of the nation’s wealth. This proves that...
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...explains the truth behind the american dream, and why people feel that way. Many liberals believe that the dream is dead because the income gap known as “income inequality” but despite the fact that liberals have that belief, income inequality actually helps people acquire the “American Dream”. Income inequality acts as a motivation for the less fortunate, or even a wake up call. So this gap is what help humans gain this area of success in life known as “The American Dream”. The “American Dream” is more than just making money or having a job, it...
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...The Issue of Income Equality in the US By SOC 100: Intro to Sociology April 29, 2012 A major social problem in America today is its inequality of the distribution of income. "Income inequality refers to the gap between the rich and the poor. The United States has the most unequal income distribution in the industrialized world, and it is growing at a faster rate than any other industrialized country" Bernard Sanders (1997). What's really going on with the economy? - Unequal distribution of wealth and income. [ONLINE] Available at: www.usatoday.com. [Last Accessed 04/27/2012]. Society defines this social issue as the disparity between the few at the very top of the income ladder, and the many at the bottom. Recently, the Occupy Movement has defined this problem has fight between the 1% and the 99%. The social classes that are most impacted by this disparity pretty much cover the spectrum as we are all affected. The most latent effects are probably found in the poor, in single-mothers, and in the minority classes. Those are the classes that have the least amount of economic and social power at the onset. A persons clothing, housing and educational opportunities usually depend on their class, but that is a direct reflection of their income. A person does not gain any class or power without their income being taken into consideration. The only problem is, is that there is also class inequality, which further prohibits people to earn an equal...
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...Democracy, Religion and Inequality University of Groningen Faculty of Economics and Business Bachelor Thesis International Economics and Business Name Student: Yitian Jing Student ID Number: s2012790 Student email: y.jing@student.rug.nl Date Thesis: Jun. 5th, 2012 Name Supervisor: Dr. Robbert K. J. Maseland First and foremost, I would like to express my sincere appreciation and gratitude to my advisor, Dr. R. K. J. Maseland, for his academic guidance and encouragement throughout the research. He has been very generous sharing his experiences on institutional and cultural determinants on economy, as well as on academic research methodology and beyond. I would not have finished such a thesis paper without his support. His effort and patience would never be forgotten. Abstract The democracy’s inequality decreasing effect has been appealing to researchers for long but lacks concentrated argumentation and empirical evidence, as well as the interaction between democracy and religion. This paper conduct an empirical analysis covering time period of 1978-2010 with 86 countries to test the hypotheses of whether democracy decreases inequality and whether an egalitarian religion decreases the influence of democracy. The result shows the direct effect of democracy is weak, however, the hypothesis of religion’s effect on the democracy’s influence is partially confirmed. Therefore, democracy itself has minor influence on inequality while a large proportion of the effect is...
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...assess the view of the New Egalitarian arguments about social mobility’ (40 marks) Social mobility refers to the movement of individuals, families, households, or other categories of people within or between social strata in a society. It is a change in social status relative to others' social location within a given society. The New Egalitarians are a group of sociologists and politicians who believe that social-class divisions are in decline and that policies to socially include deprived groups are working. Their critics consist mainly of the Traditionalists, Marxists and Neo Marxists. In this essay I aim to show how persuasive the New Egalitarian argument is. New Egalitarian sociologists such as Giddens and Diamond (2005) argue that social class is no longer an important source of inequality or identity in the contemporary UK. They suggest that the UK is a meritocratic society in that equality of opportunity is now the norm, i.e. all members of society are objectively and equally judged on their talent and ability. However, the Traditionalist view opposes this; they argue class divisions and conflict are still the key characteristics of British society today. They believe that Labour politicians have abandoned their commitment to equality and social justice for those exploited by the organisation of capitalism. They believe Labour politicians have betrayed its working-class roots because it has done nothing to redistribute wealth and income from rich to poor, or to address the...
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... Draft Why Income Equality is Important Arthur MacEwan[1] March 2009 “The social system is not an unchangeable order beyond human control but a pattern of human action.”—John Rawls (1971, p. 102) In recent years “poverty reduction” has become the watchword in development agencies, in international lending institutions, and among development economists generally. The focus on poverty reduction reached a high point perhaps with the articulation of the Millennium Development Goals (MDGs) and with the extensive analytic work that has accompanied the MDGs.[2] Yet, much of the discussion of poverty reduction and economic development in low and middle income countries has either ignored the issue of income distribution or has tended to view income distribution only in terms of its impact on economic growth. Poverty and inequality, however, are intimately bound up with one another.[3] Both as an analytic issue and as a policy issue, there are severe limitations in attempting to deal with poverty – or, more broadly, with economic well-being – without also examining income inequality. Indeed, it is questionable that we can even define poverty independently of income distribution. In this essay, I want to develop the argument that economists and economic policy-makers should focus much greater attention on inequality as measured by the distribution of income (and wealth). The traditional focus simply on absolute levels of income as a measure of poverty...
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...INCOME AND GENDER INEQUALITY IN TODAYS WORLD In President Obama 2012 State of the Union, he called it "the defining issue of our time." (CNN). Income inequality is the extent to which there is a distribution of revenue unevenly among the population. Unfortunate this creates a gap between the rich and everyone. It also gives the idea whether income distribution is fair or unfair. Income inequality is growing in the market day by day, and it is calculated based on the population present in the economy. The United States has a comparatively high level of income inequality results from labor market changes, changes in household composition, the shift from industrialized employment to high paying technical services jobs, and lower paying retail trade jobs. The argument has deliberated by some who say that in one way, income inequality can fuel economic growth. According to their argument, a greater portion of the rich's income is not spent on consumables, but instead, they are likely to save and invest more (AAUW). As a result of this, there is predictable economic growth due to the increased investment made by those with high incomes over the years. Income inequality is viewed by most people to be a result of government policies that impact the distribution of revenue among its population (AAUW). Gender income inequality is the gap between the income of men and women among the people in the economy. It is the average difference between male and females aggregate hourly income. Through...
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...Job Discrimination: Its Nature * Discrimination in its root meaning refers to the act of distinguishing one object from another. * In modern usage, the term refers to "wrongful discrimination," or distinguishing among people on the basis of prejudice instead of individual merit. * Discrimination in employment involves three basic elements: * It must be a decision not based on individual merit. * The decision must derive from racial or sexual prejudice. * The decision must have a harmful impact on the interest of employees Forms of Discrimination: Intentional and Institutional Aspects * Discriminatory acts can be categorized according to the extent to which they are intentional and institutionalized. * An act may be part of the isolated behavior of an individual: * Intentionally discriminates based on personal prejudice. * An act may be part of the routine, institutionalized behavior of a group. * The act must intentionally discriminate out of personal prejudice. * An act may be part of the isolated behavior of a single individual who unintentionally discriminates because he or she uncritically adopts the practices and stereotypes of his or her society * An act may be part of the systematic routine of a group that unintentionally discriminates because group members uncritically incorporate the discriminatory practices of society. Discrimination: Its Extent * Discrimination exists when a...
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...and Rising Inequality in Australia Is Increasing Inequality Inevitable in Australia? Tom Conley Griffith University Introduction I want to dedicate my government to the maintenance of traditional Australian values. And they include those great values of mateship and egalitarianism.1 10 years ago a Mitsubishi type development would have flattened people psychologically. Now they take it in their stride … 2 Policy-makers and commentators have long been cajoling Australians into accepting that they are a part of the global economy, which means an acceptance of a whole range of ‘new realities’. One of the major themes of the pro-globalisation position is that Australia has accepted these new realities and adjusted well to globalisation by embracing economic liberalism. The results, it is argued, have been overwhelmingly beneficial. John Howard points out the Australian economy has grown for fourteen years straight – a remarkable achievement by any standards. This success story of growth has tended, however, to override more disaggregated, negative analyses of social outcomes in Australia. A less sanguine part of this new globalising ‘reality’ appears to be an acceptance of rising inequality. Indeed, it is often implied that rising inequality is a spur for growth. The argument is that everyone is better off, it’s just that some people are better off than others. While commentary is often not explicit about the association of globalisation and rising inequality, occasionally...
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...lobal-ma Justify your answers using economic concepts and ideas as they apply. Each response should be between 100-200 words. Questions: 1. The demand for labor is said to be a “derived” demand. What is the meaning of a derived demand? How does this concept help to determine the demand for labor? 2. What are some of the factors that determine the supply of labor in a market? What significant factors have changed the supply of labor over the last twenty years? 3. How does a firm determine its prices and the quantity of labor required in the resource market during a specific period? 4. Why do income inequalities exist? How are income inequalities measured? How have income inequalities changed from 1980 to the present? 5. What is the role of the U.S. government, in terms of dealing with the problem of income inequalities? What are the arguments, for and against, government involvement in this area? 6. Why do nations trade? What is meant by the concept of “Comparative Advantage”? Could a nation be better off economically, if it practiced an isolation policy? 7. The United States has had a significant trade imbalance for several years. What are the problems associated with having a negative trade balance? What can be done to correct the imbalance? 8. How are exchange rates determined? What is the significance of currency devaluations to the home country? To other...
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...Group - 5 Somnath Bhaduri Neeraj Jain Naveen A. Kumar Kirti Katiyar Harsh Agarwal Dipankar Duttagupta Group - 5 Somnath Bhaduri Neeraj Jain Naveen A. Kumar Kirti Katiyar Harsh Agarwal Dipankar Duttagupta MIDDLE-INCOME TRAP IN INDIA MIDDLE-INCOME TRAP IN INDIA TABLE OF CONTENTS 1. Introduction……………………………………………………………………………………………… 2. The Middle Income Trap…………………………………………………………………………… 3. Reason why countries are struck in Middle-Income Trap…………………………. 4. India enters the Middle Income Group…………………………………………………….. 5. Factors causing Middle Income Trap and Economic Slowdown………………… 6. Income inequality and its relevance…………………………………………………………. 7. How to avoid India falling into Middle Income Trap…………………………………. 8. Conclusion………………………………………………………………………………………………… INTRODUCTION According to International Monetary Fund World Economic Outlook (April-2015), GDP (nominal) per capita of India in 2014 at current prices is $1,627. India is in the lower-middle income category. India’s entry to the middle income group has raised the question whether it will be able to avoid the ‘middle income trap’ which refers to prolonged stay in the middle income category and failure to move ahead to the high income category. India’s economy has developed quickly in the last decade, improving living standards and experiencing strong growth in such critical sectors as ICT (information, communication and technology). In recent years, however, circumstances...
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...A STUDY ON PROGRESSIVE INCOME TAX A CASE STUDY OF US & BRAZIL ________________________________________ INSTRUCTOR: DALIA EL-EDEL ECON 310-02 TERM PAPER - BY: JIHAD MASHAMOUN 900-08-2910 LARA AZZAM 900-09-3033 LUJANE MULLA 900-10-1019 ABSTRACT There is no doubt that the widening income disparities were a major driving force fueling the recent uprisings within the Middle East. One solution that has been put forth for adoption is the progressive income tax. This paper intends to assess the theoretical bases and popular arguments surrounding this very dynamic topic. The first section provides a brief definition of progressive taxation in contrast with other forms of taxation. It also discusses the most dominant for and against arguments both from a theoretical and an empirical point of view. The second section provides a case study of progressive income taxes in a leading industrial and developed country; the US. The third section provides a comparative study from Brazil; an emerging economy that has recently adopted progressive taxation. Based on the theoretical analysis and the two case studies, the paper concludes by providing policy recommendations that should be implemented in order to complement progressive taxation and gain the best and most balanced results in terms of equality, efficiency and revenues. Finally taxation is only part of the economic equation; proper efficient tax system is only one step forward towards creating equal opportunities through proper...
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...com/shop/eco-202-m5-assignment-1-lasa-2/ Justify your answers using economic concepts and ideas as they apply. Each response should be between 100-200 words. Questions: 1. The demand for labor is said to be a “derived” demand. What is the meaning of a derived demand? How does this concept help to determine the demand for labor? 2. What are some of the factors that determine the supply of labor in a market? What significant factors have changed the supply of labor over the last twenty years? 3. How does a firm determine its prices and the quantity of labor required in the resource market during a specific period? 4. Why do income inequalities exist? How are income inequalities measured? How have income inequalities changed from 1980 to the present? 5. What is the role of the U.S. government, in terms of dealing with the problem of income inequalities? What are the arguments, for and against, government involvement in this area? 6. Why do nations trade? What is meant by the concept of “Comparative Advantage”? Could a nation be better off economically, if it practiced an isolation policy? 7. The United States has had a significant trade imbalance for several years. What are the problems associated with having a negative trade balance? What can be done to correct the imbalance? 8. How are exchange rates determined? What is the significance of currency devaluations to the home country? To other...
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...• Part I - Midterm Ch 1 1. Does exposure to competition with the world leader in a particular industry improve a firm's productivity? Discuss in detail by providing sound arguments to support your choice of response. A world leader is ac company which can own the maximum market shares or which can have a market position because of the part of the services or the products. Now if the new comer or any other company bench mark itself against the work leader consequently it will try to improve the efficiency and productivity in comparison to principal company which ultimately enhances the company’s performance. 2. What are the essential arguments in favor of free trade and against free trade? Favor Free Trade - Law of comparative advantage - Increased competition leads to lower prices for consumers - Open economies lead to increased technological development and innovation - Higher standard of living - Better understanding of nations Against Free trade - Free trade benefits US companies rather than citizens - Environmental exploitation - Human Rights issues - Reduction in domestic wages - Lower domestic competitiveness as a result of developing facilities elsewhere Ch 2 3. Is it possible to estimate the gains from trade? Explain when it can bet estimated and when it can’t. Since the early 1600s Mercantilists has developed theory for measuring gains from trades with the assumption that a trade surplus would eventually lead to increase domestic productiona...
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