The Increasing Gap Between Wealthy and Poor
The rise of globalization and technological advancement has multiple impact in several sectors of human society causing a rift between the wealth and the poor. As examined, it is observed that there are two extremities in the modern society that counts on extreme rich and poor. The arsons of such rifts between the both has resulted of several reasons that involves inequalities, economic differentiation, income equality, lack of job opportunities and societal in differentiation (Cole, Greenwood & Sanchez, 2016). Economic inequality has been the major reason causing the gap between the poor and the wealthy group of people across globe. In addition, the gap determines the wealth disparity or income indifference that underpins the income and wealth distribution among the two sections of the society. The study examines and explores the multiple aspects in accordance to the increasing gap between the poor and the rich.
The research has been conducted with the help of the study of eths secondary sources while preparing, evaluating and examining the results and data collected in relation to the increasing gap between the rich and the poor. It is important to initially assemble the information in regards to the trends in the relationship between socio-economic statuses. Therefore, it is important evaluate multiple sources of data. The rift that has risen due to several factors between the poor and the rich resulted in adverse consequences causing inequalities among extreme groups affecting the lives of the millions of individuals in the society (Musterd et al. 2016). For example, in country like India a multilingual country, that involves diverse population with social hierarchy and cultural differentiation. In order to study the gap it is important to relate it to the concept of equity: that includes opportunity equality and outcome equality. The essay cater towards the study of the nationally representative studies, including Education Statistics, economic scale and analysis; difference in short term and the Long-Term Trend and educational progress, international studies in collecting the information on both family background, academic qualification and economic structure of the rich and the poor. With eth examination of eth secondary source study and research conducted in collecting the statisticsthe essay has nationally representative socioeconomic characteristics, such as family income, education and occupation in understanding the magnitude of determined gaps.
Figure1: Income inequality
(Source- Durante, Tablante & Fiske, 2017)
There are number of factors that results in the growing gap between the poor and the wealthy within the society. As examined, the reasons are mostly correlated causing diversity among the societal structure and growth. The major reasons that leads to global gap between the two sections of social hierarchy across the globe are , labor markets, legal reforms, technological changes, policy, taxes , globalization; indifferences on the basis of color, gender, inequality, culture, creed, religion resulting in unequal salaries and wages (Grabka & Wittenberg, 2017). The major factor being the wage determination by the section of the capitalist market because the job wages are affected by the demand and supply within the capitalist market.
It is argued that the inequality and the gap between the poor and the wealthy is caused due to globalization and challenges and changes posed by the technological advancement that adheres to immense competition among the sections of the people while putting a barrier to the poor people who are paid less according to the economic pay scale structure and analysis.One of the important factor is often overlooked that is the maximum concentration of eth political power over the ruling class that influences the elites and capitalists while the poor sections are left morbid and suppressed (Pickett & Wilkinson, 2015). Besides, the lack of employment, payroll, taxes the internal injustice made by eth political leaders and societal power subdues the existing poor sections of eth society. It is argued that by limiti8ng the social and economic inequality can be done by reversing the upward pre-distributions within the market structure and employment sector that will allow average people in bargaining in earning a larger share of the gains and profits.
The gap between the rich and poor can be analyzed through the example that states that the three wealthiest individuals in the world have approximately assets and wealth that exceeds the poorest ten percent of the world's population. Inequality exists within different nations as gathered from the statistical and graph study (Mani et al. 2013). According to the study, the world's wealthiest countries approximately ahs thirteen percent of the world's population and forty five percent of its purchasing power while that of the poorest nations have forty two percent of the world's population with only nine percent of its purchasing power.
Another example that is studied from the secondary source is that the poor nations in Africa and Latin America are facing maximum inequality resulting in discrimination and dissatisfaction among the sections of the society. Besides, wealthier countries that include United States and China also have unidentified and significant inequality caused due to economic variation (Bosworth, Burtless & Zhang, 2016). The national integrity and development depends much on individual prosperity and growth and development that can help in reducing inequality based on the distribution of wealth and allotment of job.
Figure2: World population poverty chart
(Source- Milanovic, 2013)
Another example can be set from the United States, where there has been lack of employment within the sections of unskilled laborers that has been impacting the market forces on inequality. The government needs to cater to the individual needs, facilitate employment and work structure, provide sufficient resources and economy to every section of the people (Massey,& Tannen, 2016).
The gap between the rich and the poor is caused due to not only social and cultural inequalities but mainly because of the economic inequality resulting in income inequality, wealth disparity, income differences lack of availability of resources and assets. From the study of the Gini coefficient it is understood that eth wealth of every diverse section’s wealth and income is monitored by a single individual.
Figure3: Gini coefficient projection
(Source- Ravallion, 2014)
The economic inequality and social differentiation is impacted by several factors that are interrelated affecting not the nation but the individuals to a greater extent causing diversification and inequality. The factors include differences in wage and salary structure technological advancement, globalization, difference in the payroll of the skilled and unskilled labors, wealth power within few individuals, taxation, change in policies and legal; systems, political injustice, education, racism, stereotypes and social injustice on the basis of color, creed and gender (Durante, Tablante & Fiske, 2017).
From the above study, it is understood that in limiting and reducing the gap between the rich become rich can be resolved by facilitating the financial literacy, proper and elementary education and investing in human capital. In countries like USA, Australia, and developing countries like India, Bangladesh etc there has been a growing rift between the poor and the rich and is worsening with time due to social hierarchal factors, stereotypes, financial inequality, resource allocation etc. Besides, government formulated initiatives and activities both can decrease and increase inequality. Therefore, the government and the policy makers sociologists, need to the determine effectiveness and merits of every suggested strategies in that help in covering the gap between inequality regulation and social discrimination. United the policy makers and the government need to strategize and implement the initiatives towards reducing the growing gap between the poor and the rich. It is important to foster public education that will increase the skilled labor supply for new jobs that will reduce the income inequality caused due to education differentiation.