Should Governments Use Financial Policies To Narrow The Gap Essay Samples
between the rich and the poor?
<Name and Section # of course>
between the rich and the poor?
The rich of the world are getting richer, whereas the poor are getting poorer. With the passage of time, the gap that should have narrowed and come to a close is actually widening, and the disparity between the classes is ever increasing. The reasons are much diverse and complicated, yet overtly simple that inequality of wealth, of income and of consumption has caused this gap in the first place.
The widening has occurred due to the accumulation of wealth in a few hands while the poor and less privileged remained deprived of their rights. Looking at the world's richest countries such as UK, USA,Sweden, Norway etc the pattern of wealth although is uniform, however there are places that are in these countries that suffer from inequality and the list is not a short one. There are levels of poverty that have created this disparity. (Crace, 2009).
In order to alleviate those who are getting grinded for their economic predicament and those who have more than enough, the government needs to implement such policies and bring about changes in its financial system so that wealth does not get concentrated and there’s a rhythmic flow of capital that benefits all classes alike. It is a social problem that is growing to a peak, because not only does this gap between rich and poor affect their lives, it also has a staggering effect on the economy of a country. The disparity is evident by the fact that The Royal Bank of Scotland concluded that bankers pay were too high where the executive was earning a million pounds. Although the financial crisis was not brought by the poorer people rather than, the richer ones who work in the executive culture. (BBC, 2012).
Governments need to take financial policies a step ahead in order to make this gap narrowed. There are many reasons for that.A Report suggested that economic inequality is harmful to all alike, however there are the poorer classes that suffer the most from this kind of blows that lead to crimes and problems like increased infant mortality, else social mobility, and low average life expectancy.(Evans, 2010). Inflation is also a dilemma that needs to be thought through. With the prices rising every now and then, the lower classes find it hard to save anything at all.What is needed at the time is a fairer tax wage and to tax the people according to what they earn. The need is to implement taxes on Americans and foreigners on both their properties here as well as abroad in foreign countries.(McKinnon, 2012).Ther are many causes and reasons why there need to be measures for controlling the disparity between the growing gap between classes. There are all kinds of measures that can be taken for bridging the gap. A wealth tax is always lucrative. (Frank, 2012).
The rich don't know how rich they are unless they are taxed, and it is discovered what they are worth when they are taxed, and their net worth is judged. It can be applied in order to save the inequality situation rampant in society, a question occurs that what if the lifestyle and social setup of the affluent and wealthy classes get affected by any of the measures implemented by the government. It is, however, a matter of implementation and what pursues it yet presently it is the poorer class that is suffering and leads its generations to suffer along with. (Davidson, 2011).
The policies that the government could take to can possibly are the taxation policies that are unfair in the society. There are many countries that have taken to the policy of taxing the public according to income and expenditure rather than placing equal taxes on everyone just so they could gather more capital. In some cases, the wealth that is collected from the rich people’s taxes is distributed amongst the needy and deprived people of the society so that they can sustain themselves and perhaps save a little as well. The same or similar policies can be employed in our country, where the rich are taxed more since they have more properties, expenses, and sufficient incomes. On the other hand, the poorer citizens should be taxed according to what they earn and what property do they live in and what their monthly expenditure amounts to. If the poor man has to pay a tax equal to a rich man’s this leaves nothing in his hands, and the gap between the two classes will remain forever widened.(Eaton, 2011).
The government can also introduce policies such as benefits for the poor like health benefits and education scholarships or fee waiving that can greatly help a poor person’s child in acquiring an education, which is the root of the rich-poor-gap problem.
Unemployment is also a major reason why this gap persists. If the government succeeds in creating job opportunities, irrespective of qualification and background, or creates a fiscal stimulus in order to intimate people to work and earn or creates a labor work market with initiatives and good wages then a lot of people would be able to get employed and improve their living conditions. The other initiative is that of the minimum wages that can be employed and given to people who are working at unstable salaries, and this can help them earn a good income that can sustain them for their lives. In the UK, the minimum wage can be raised from 15P to £6.80, which is a significant amount for a family that is living in poverty. (Lanchester, 2012).
There certainly is a great need for better financial policies to get implemented so that the gap between the rich and poor is bridged, and there remains no disparity in society. Those nations that have a just social system have become the most successful.
BBC.(2012).Business. [Internet]. Available from
[Accessed 26 February 2015].
Crace, John (2009). The Guardian. [Internet]. Available from
<http://www.theguardian.com/society/2009/mar12/equality-british-society> [Accessed 26 February 2015].
Eaton, George (2011).New statesman. [Internet]. Available from
<http://www.newstateman.com/blogs-the-staggers-2011/11executive pay increases> [Accessed 26 February 2015].
Davidson, Adam. (2011). New York Times Magazine. [Internet]. Available from
<http://www.nprblogs/money/2011/11/28/1432896/should the government narrows the government narrows the gap part i> [Accessed 26 February 2015].
Lanchester, John(2012).The guardian [Internet]. Available from
<http://www.the guardian.com/society/2012/Feb/whythesuperrichloveuk>[Accessed 26 February 2015].
Willsher, Kim. (2009).Paris Guardian [Internet].Available from
<http://www.the guardian.com/world/2012/sep2014/France/supertax patriotism/braindrain> [Accessed 26 February 2015].
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