Economic Inequality in the World Today
Economic inequality or wealth disparity is the term used to describe the huge income and wealth gap between the rich and the poor all over the world. There is so much economic inequality today throughout the world that it has become a serious social and economical problem today. Economic inequality leads to social unrest and increase in crime rates all over the world. The deeply worrying trend is that the rich seems to get richer and the poor seem to get poorer in both developing and developed countries. The following are some characteristics that define economic inequality in countries around the world.
Many countries around the world today have millionaires and billionaires residing within the countries. But the percentage of rich and extremely rich in most countries is a very small number usually less than 5 or 10% of the total population in the country. Countries, especially developing countries have a large human population that is either below the poverty line or just above the poverty line. Such deep income inequalities are really detrimental to the progress of societies. Crimes, social unrest and deep sense of gloom prevails over a population that sees a few rich people and a large number that is fighting to just get basic facilities like food, clothing , shelter and medical services.
Also when there is a large economic inequality the power or much of the wealth generation in the economy is in the hands of just the elite. This gives rise to crony capitalism and also basic rights of the poor do not reach the poor who are in much need of it.
How to Overcome Economic Inequality
Economic Inequality needs to be addressed by ensuring an overall growth and progress of the society. If basic services, education and infrastructure can be provided to the poor they can defeat the vicious cycle of poverty. Discrimination, corruption, regressive tax policies, plutocracy, lack of educational facilities and infrastructural facilities for the poor and slow adoption of new technologies are some of the causes of income inequality. There is nothing wrong in legitimately earning money and becoming rich. However if equal opportunities are given to the citizens of a country, then the economic inequality will not persist in society.
People of a free society are always going to have different incomes and different amounts of wealth. However grave economic inequality is something that is very bad for an economy and so this needs to be tackled all over the world.