Good Research Paper About Gap Between Then Rich And Poor

Type of paper: Research Paper

Topic: Social Issues, Inequality, Poverty, Poor, Wellness, People, Gap, Economics

Pages: 2

Words: 550

Published: 2021/02/05

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Wealth is a determinant of your social status in the society. Wealth is a cross-sectional distribution of income in a given period. The rich will always have a greater determinant of how to run the organization as the poor has to comply with the rules set. The aspect of differentiation between the two categories of people began in the ancient years as people belonged to certain groups of the society. Many factors lead to the gap separating these groups of people. Often the reasons for this are wealth, income and consumption that are determining the level of inequality among these people. This paper will discuss the reasons for the gap between the rich and poor people according to different authors.

Hypothesis

There are several forms of hypothesis that may be stated for this study. They include
Technology in most of the organization is one of the determinant factor of the gap
The rich will always have a greater determinant of how to run the organization as the poor has to comply with the rules set.
Technology is a significant determinant of the gap. An industrialization level improves a country’s economy creating a certain number of the rich and poor people in that country. Authors from Wall Street use the technology statistics to establish the gap levels of the rich and poor people in industrialized countries. Globalization and technological progress in industrialized countries are creating a need for such firms to demand more from workers. Reports are being generated Organization for Economic Cooperation and Development to give a statistic on what countries are more affected by industrialization growth. The inequality levels are visible in the USA and also in countries like Germany, Sweden and Denmark, which have been more equal. Investors are spreading the markets of their home industries to different countries causing the host country operate on deficit budgets because they are failing to distribute the benefits from the industrialization effect.
A comparison of the rich man’s income to the poor man is nine times the poor man’s earnings. As observed, It canis graphically determined by a 10% rating of population among the thirty-four OECD member states. This ratio is lower in other European countries giving a statistic of fourteen to one in the USA and Israel then a rate of twenty-seven to one in Mexico and Chile. These rate comparisons are of the years between the mid-1980 and the late 2000’s determining the inequality rates from zero when every person earns similar amounts. This drastic change in propotions comes as the salaries of higher earners rose faster than the lower earners in the past two decades. These rates increased by 2.0% and 1.4% annually of the top and bottom earners respectively.
There are many causes of economic inequalities among people in different societies. It is from the increasing differences in wages and salaries of workers. Economistsare specializing in the study of economic inequality; argue that widening economic disparity is an inevitable theory of free markets when a rate of return on capital is higher than the economy growth rate. Common factors will include; labor market results, globalization effect, salaries in low-skill jobs among the few.The rise of free trade and global financial markets gave rise to income inequality in significant countries. Firms started as struggle for the available skilled labor ignoring anenormous number of people leaving them unemployed. Governments are trying to stabilize the effect by redistribution and education to low income earners but taxes to household incomes would neither affect nor financially support.

Recovery of the Economy

Documentary records indicate that, the gap between the rich and poor widened during recovery of the U.S economy. Families in the U.S did not recover assets lost between 2003 and 2010. Wealthy people had a 10% increase of their wealth in 2013 from 2010 as the poor families had 40% inflation decline in their incomes over that period. It is as per the survey made by Fed’s Survey of Consumers. A measure of restructuring households is to be taken but inequality is still rising. Aid policies and their determinants had to be identified to get the country’s economy out of recession. Variations in school quality in America played a big role in differences in family incomes. The rich went to school with up-to-date resources as the sick went to schools that can be dismal and dispiriting, having roof leaks and overcrowded populations which did not facilitate proper academic ratio depending on lecturer consultations (Cecil, 2006).

Effect of the Gini Index

This formula was derived by Corrado Gini in the year 1912. The formula is used to calculate the incomes depending on a broad salary range of people. When one person earns all the salary and other do not then the index of the world would be one, and if all people had equal pay then the world’s index would be zero. The American economy has used this index formula since 1947, and recording the lowest value of (.386) in 1968. Since then it started rising and the USA records the highest income inequality in any other democracy in the world.It is currently a global argument.The growing price of inequality is responsible for the instability in politics. A survey from forty-four states show that religion and ethnicity cause the gap but Americans put bias as the primary cause . The inequality increase in America is to be studied by political analysts as the economists do though they have small interest on how it affects the American markets. Currently, Democrats and Republicans are debating about who is to blame for the growing inequality in the country that is a development that cannot be neglected. Different authors are making own judgments on what caused the spread of inequality in the American economy. Putman believes tackling inequality outcome is the best way of overcome inequality opportunity. (Helping somebody get a job, her kids will have a better chance of getting out of the poverty group.) Above all, he disagrees with the conclusion that technology is the determinant of inequality, arguing that this assumption is a belief that globalization and technology is inevitable (Cecil, 2006). Technological changes come up as regulations from a firm. These rules come from the firm’s legislators, researchers, and governments. Atkinson thinks the gap between the poor and the rich is only influenced by individual efforts. His articles show, he is not interested in stories as Putman’s articles are based on historical stories but looks at an individual’s effort relating it to the necessary pay that he deserves. Atkinson considers inequality as an individual’s desire to become rich or stay below the poverty line.
In conclusion, there are other causes of inequality among countries. The differences in the level policy implementation creates inequality among the citizens, corruption in the leadership, wrong development strategies set up by the state which eventually promotes bias and tribalism.Countries affected by catastrophes will record high levels of inequalities since a selected number of groups are given priority before any issueis settled.Individual cases are common in less developed countries that are all dependents of donor nations to provide them funds. Even when a state tolerates inequality, political consequences follow, and a need for change will be given to the affected parties. Any person can turn things around under certain conditions. Children from poor backgrounds can be successful in the future only when their parents show warmth and consider their education. It can quickly achieve when these children find right groups and schools that can help recognize and develop their talents. The reduction of material and emotional deprivation in childhood will help a child to quickly develop more secure relationships throughout their lives, and it is this relationship that helps them to overcome such adversities. This finding feeds into many issues that are currently being debated in the media, such as the work–life balance and increased parental leave. Relating to the research, asking whether highly paid jobs, high-status job is worth sacrificing for a family relationship, it will find that a man and woman will delay starting a family to pursue their dream careers and are not more satisfied at the age of 30 than the men and women who are in two parent-families. Putting more emphasis on the raising of a child will determine the level and standard of living that he will have in the future.

References

Cecil, A. R. (1996). The widening gap between the rich and the poor. Vital Speeches of the Day, 62(7), 197.
LEPORE, J. (2015). Richer and Poorer. The New Yorker, 12.
LEUBSDORF, B. (2014). Gap Between Rich, Poor Americans Widened During Recovery. The Wall Street Journal, 1.
MOFFETT, S. (2011). Technology Widens Gap Between Rich and Poor. the wall street journal, 1.

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