The Effect of Income Inequality on Economic Growth

1. Introduction and Motivation Only one century ago we had no airplanes, no computer no cell phones, no internet, no luxurious Bmw`s to show off with. We had only simple versions of cars, trucks, telephone and black and white cameras. Less than one in five homes had running water, flush toilets, a vacuum cleaner or gas or electric heat. However, in the today`s world of shiny cars, luxurious apartments and houses equipped with appliances a man from the previous century cannot even imagine and with phones and computers that do the thinking instead of us, there is another world, a world that few of us pay attention to. What is striking about it, is that people live like the ones century ago, or even worse. Almost half of the world — over three billion people — live on less than $2.50 a day. 22,000 children die each day due to poverty, nearly a billion people entered the 21st century unable to read a book or sign their names, Some 1.1 billion people in developing countries have inadequate access to water, and 2.6 billion lack basic sanitation. And while the richest 1% of the population owns about 46% of global wealth($110 trillion), the bottom 50% of the population barely owns $1.7 trillion (some 0.7% of the worlds wealth), about the same as the worlds 85 richest people. (http://www.globalissues.org/artic le/26/poverty-facts-and-stats) So, if somebody wonders why did I choose the subject of inequality the previous lines are exactly the reason. The hypothesis I will try toShow MoreRelatedBenefits Of Income And Assets Inequality Essay1462 Words   |  6 PagesIntroduction: Income and assets inequality is a significate issue in economy. Throughout human history capital and assets will likely continue to accumulate and become more concentrated, as a result that an greater level of inequality might be witness. Piketty ( 2014 ) found that the rate of GDP growth is lower than return on capital. This Piketty s famous rg inequality shows that assets tend to accumulate faster than the rate of economic growth in capitalist societies which means capital distributionRead MoreThe Context Of Growing Economic Interdependence1672 Words   |  7 Pageswill endeavour to explore the context of growing economic interdependence (globalisation); inequality is both growing within and between nations. In turn, analysing the following the following statement that â€Å"Inequality can undermine economic, social and perhaps even political stability. It can tear the very fabric that holds society together. We now have firm evidence that a severely skewed income distribution ha rms the pace and sustainability of growth over the longer term. The growing gap betweenRead MoreInequality Of Economic Growth And Inequality1699 Words   |  7 PagesEconomic growth and inequality has been a long debated topic but is more important in the recent decades as income inequality has dramatically grown within many countries; the implications on these can hinder social and political development. Economic growth and its link to Equality can help create stability for an economy and improve living standards in the long run. More directly it allows people to be able to contribute and engage in the economy as it provides the opportunity for employment, investmentRead MoreTrade and Income Inequality693 Words   |  3 Pagesplace, living conditions and economic growth must be the ultimate goal. Trade and economic growth that does not establish a reduction in poverty can generate problems that did not exist before. If rapid growth is accomplished at the expense of misdistribution of resources, then it will create social tensions or class warf are. Rapid growth has been shown in different countries that raises gap of income inequality and raise the poverty rate. In India, the slow economic growth has been steady for a periodRead MoreThe Problem Of Income Inequality1159 Words   |  5 PagesIncome inequality is increasingly becoming a significant concern for many countries around the world. The income difference between the highly-educated, skilled, wealthy class and the poor, low to mid-skilled workers is growing larger and larger. In fact, the incomes of the rich are increasing significantly, while the low skilled workers’ incomes have been declining (The Economist, â€Å"Wealth Without Workers†). According to The Economist, real median wages have been decreasing since 2000 in half ofRead MorePublic Land Policy, And The Wilderness Act Of 1964845 Words   |  4 Pagesplanners, and policy makers. The root of the debates is a question of which types of public lands management can provide better economic bene fits to adjacent regions that are referred to gateway communities. For a long time, resource extractive industries – such as mineral, oil, coal, and timber development sectors - have been a primary growth engine for the economic growth in those communities. However, since the past three decades, several federal land use policies such as the Multiple-Use Sustained-YieldRead MoreRelationship Between Income Inequality And Financial Sector Development969 Words   |  4 PagesFinancial development boosts economic growth have been shown by the increasing number of scholars, however whether the financial sector development could benefits the income distribution is still controversial. Under this question, this essay try to use statistically method to explore the relationship between income inequality and financial sector development. This essay’s results present that inequality decreases as financial development. Although there are some weak evidence suggests that thereRead MoreLiterature Review Of Literature On Economic Inequality1470 Words   |  6 Pagesabout Economic inequality and how it affects various aspects of quality of life. The literature is diverse with recent works such as Richard Wilkinson and Kate Pickett’s The Spirit Level, which suggests that economic inequality has a detrimental effect on several factors such as increased crime, increased obesity, and worse mental health within a country. Simon Kuznets, an influential America economist set an economic paradigm which established that that economic growth and increased inequality wasRead MoreEconomic Inequality And Its Effects On Economic Growth1709 Words   |  7 Pagesof economic inequality. Over the past decades, economic inequality has been rising and at an increasing rate, expanding the gap between the rich and the poor. The direct relationship between inequality and poverty has shown that while inequality increases, so too does poverty. Increased inequality is harmful for economic growth and its effects also bear social implications. Although there are arguments on the consequences of wealth redistribution and its unintended impact on economic growth, wealthRead MoreEducation And Income Inequality : New Evidence From Cross Country Data Essay927 Words   |  4 PagesLee published â€Å"Education and Income Inequality: New Evidence from Cross-Country Data† in the early 2000s (Gregorio Lee, 2002). This paper looks at empirical evidence on how educational factors, like higher educational attainment and equal distribution of education, play a significant role in income distribution. The authors Gregorio and Lee state that many other literature pieces emphasize education as one of the major factors affecting the degree of income inequality (Gregorio Lee, 2002). Gregorio

The Glamorization of Mental Illness Among Teenagers

Maren Dennison Pd. 4 11/25/13 When visiting any well-known social network geared towards teens and adolescents, it takes but a few minutes to encounter a post that glorifies a disturbed mind. However, being mentally disturbed does not make a person beautiful. Many teens and adolescents believe that fabricating and self-diagnosing certain mental illnesses are a way to gain peer acceptance and to stand apart from the crowd. Although this belief may seem harmless, the glamorization of mental illnesses can create severe physical and emotional problems for teens. The most common mental issues that teens tend to glamorize are of self-mutilation, anxiety disorders, and depression. Self-mutilation includes an array of serious issues.†¦show more content†¦Throughout the teenage years, normal levels of anxiety naturally increase due to all of the pressures of growing up and fitting in. Because of the constant worries and fears that teens experience, many start to self-diagnose General Anxiety Disorder (GAD) . GAD disrupts one’s daily life by greatly magnifying normal worries and fears, typically about the future (26). Some researchers suggest that GAD runs in family members (28). This theory considers not only genetics, but also environment. Some children learn anxious behavior from their elders (28). However, in some cases, the reason for the development of GAD cannot be determined. Typically, when a teen claims to have GAD without showing any typical symptoms of the illness, that the teen may have self-diagnosed. Self-diagnosis of GAD can create many emotional and medical problems in adolescents. Brian Kennedy explains, â€Å"Students in medical school are famous for convincing themselves that they have the disorders they are studying. The same might easily happen to people reading about anxiety disorders - especially, perhaps, with GAD. Because everyone suffers from anxiety at some point, it would be easy to self - diagnose GAD. But diagnosing an anxiety disor der is a tricky science and must be left to those qualified to treat mental disorders† (70). Teens who claim to have GAD without a proper diagnosis must be taken to a professional immediately. In cases where a

Indi The Largest Exporter Of The Most Popular Games

Mangoes India is the largest producer of mangoes in the world. Every year, over 15 million tons of mangoes are produced in India. India alone produces around 40% of world s total mangoes. Despite being the largest producer, India is not the largest exporter of mangoes due to the fact that much of the mangoes are consumed in India itself. Chess The earliest form of chess originated from India in the 6th century and was played using four members of army which were cavalry, elephantry, chariotry and infantry. By the 9th century, the game of chess spread across Western Europe and Russia. In modern day, chess is one of the most popular games played in the world. Various prestigious chess tournaments are held every year. Yoga Originated in India, Yoga has become one of the most practiced physical exercises in west and other parts of the world. Yoga was and is practiced to achieve mental, physical and spiritual needs of a human being. Many believe that yoga can help fight health problems and overall achieve a better lifestyle. In December 11, 2014, United Nations General Assembly declared June 21 as international yoga day. Largest Democracy India emerged as the largest democracy in the world after the independence from British rule in 1947. India, with over 1.2 billion people is the second largest populated country after china. China being a non-democratic country makes India the largest democracy in the world and will remain so in future. It is estimated that the population ofShow MoreRelatedProject Managment Case Studies214937 Words   |  860 Pageshave seed questions provided to assist the reader in the analysis of the case. An instructor s manual is available from John Wiley Sons, Inc., to faculty members who adopt the book for classroom use. Almost all of the case studies are factual. In most circumstances, the cases and situations have been taken from the author s consulting practice. Some educators prefer not to use case studies dated back to the 1970s and 1980s. It would xii PREFACE be easy just to change the dates but inappropriate

Dust Pan free essay sample

The University values an educational environment that provides all members of the campus community with opportunities to grow and develop intellectually, personally, culturally and socially. In order to give us a more complete picture of you as an individual, please tell us about the particular life experiences, perspectives, talents, commitments and/or interests you will bring to our campus. In other words, how will your presence enrich our community? My arm was trembling, but I strutted proudly through the swinging doors. â€Å"You got it, bud!† my manager shouted. Yeah, I got this. No biggie. I set the tray down on an unstable cart†¦SMASH. A tray of wine glasses shattered across the floor. Not one survived. Only a minute earlier, my manager encouraged me to take the challenge: â€Å"Which tray do you think is heavier?† I shrugged my shoulders. Pleaaaase be kidding. I just stared. He motioned towards a huge tray filled with wine glasses. We will write a custom essay sample on Dust Pan or any similar topic specifically for you Do Not WasteYour Time HIRE WRITER Only 13.90 / page I pictured myself dumping it all over the bride’s stunning gown. â€Å"Hold it high, above the shoulder. There ya go, bud! Now go. Take it back. Go!† I didn’t dwell on this incident. I found a dustpan. I swept up the glass. I mopped the floor clean. It took strength to walk away from that full dustpan, but I did. I scooped up another tray of glasses knowing the possibility of it slipping from my tight grasp again. Cautiousness flooded my mind, but so did confidence. I make mistakes. Sometimes big, sometime small. Either way it’s nothing that can’t be swept up. It all collects in the dust pan of my past, there to remind me to learn from my mistakes.