The Ambiguity Of Income Inequality - 1143 Words

The Ambiguity of Income Inequality Pundits say that income inequality has been one of the greatest downturns of our country’s growth and development, however a puzzle exists where economics and politics meet that does not make the solution to income inequality easy to find. Political leaders, economists, and bankers all agree that policies have appealed more to the interests of the governing class than those of the ordinary people. The comments surrounding this topic mostly stem from the strong shift of wealth distribution over the last few decades. Figures from the Economic Policy Institute demonstrate that the share of income accumulating by the top 1 percent of the United States increased from 9 percent in 1978 to 26 percent in 2011.†¦show more content†¦The closer to 1 a country is the more unevenly the income is distributed in that country. According to the CIA’s public database, the Gini coefficient of the U.S. was .40 in 1997. This number was not too bad compared to Brazil’s .59 at the time (the world’s highest). By way of contrast, a decade later Brazil experienced high economic growth and managed to cut its Gini coefficient by nearly a tenth while the U.S. increased to .45 during the 2007 year. The trend continued to rise with the U.S. reaching new heights of .48 in 2014 according to the U.S. Census Bureau. However, the Gini is only a snapshot of a single aspect of an economy. like any measuring index the Gini coefficient has its flaws. Absolute and relative levels of inequality are tough to measure, which is why income inequality is a convoluted topic. For instance, a hypothetical country with three people of yearly incomes of $650, $1500 and $10000 would be counted as having the same level of inequality with a three person country with incomes of $65,000, $150,000 and $1,000,000. The oversimplification of measuring income inequality is one of the biggest drawbacks of the Gini coefficient. Numbers can create a hyperbolic perception. My dollar may st retch further in mainland China in terms of purchasing power but that alone is not indicative of a better economy. While I may be able to rent a decent hostel for a weekend stay in Beijing, catch a bus to theShow MoreRelatedThe Pursuit Of The American Dream1421 Words   |  6 Pagespolarization of wealth and power in America. Robert Reich’s documentary Inequality for All covers what is called the â€Å"defining issue of our time† for what is happening to income and the distribution of wealth within the U.S. Though it has been proposed by innumerable media outlets today that the U.S. economy has been going through a slump, Reich suggests that this depiction has been projected upon us from the income inequality that perpetuates society today due to the top 1%. Though this seems likeRead MoreCase Study : South Africa Essay1498 Words   |  6 PagesCase study: South Africa South Africa is an upper-middle income country with a population of 52 million people and a GDP of 312.80 billion US dollars (â€Å"Statistics South Africa | The South Africa I Know, The Home I Understand†, n.d.). The country has the second largest economy in Africa; it plays a prominent role in sub-Saharan Africa and in the continent as a whole. South Africa was hugely shaped by the apartheid legacy, a system of racial segregation that began during the colonial rule and was officiallyRead MoreBrazil : An Emerging Economy992 Words   |  4 PagesTherefore, it is imperative that managers learn to adopt and implement distinct ways of working in this country. In addition to learning a new language, a manager should become a part of the cultural processes. Brazil is known for its inequality in terms of incomes. Decision-making is often done by the senior management. Gradually building a working relationship is crucial to one’s success as an outsider. Business practices differ by region. In the major cities such as Rio de Janeiro, Sà £o Paulo,Read MoreThe Pursuit Of The American Dream1545 Words   |  7 Pagespolarization of wealth and power in America. Robert Reich’s documentary Inequality for All covers what is called the â€Å"defining issue of our time† for what is happening to income and the distribution of wealth within the U.S. Though it has been proposed by innumerable media outlets today that the U.S. economy has been going through a slump, Reich suggests that this depiction has been projected upon us from the income inequality that perpetuates society today due to the top 1%. Though this seems likeRead MoreThe Effect Of Trade On Poverty1377 Words   |  6 Pagesin the domestic market. This is beneficial to both consumers and producers and in turn leads to an increase in national income. However, there are gains as well as losses. As developing countries have sizable populations that live in poverty and access to basic necessities is not a given, the impact of foreign trade on poverty becomes an important issue. Even if the national income increases, the impact on poverty cannot be overlooked. Theoretical as well as empirical evidence says that trade liberalizationRead MoreHofstedes Culture Dimensions Theory1112 Words   |  5 Pagesbehavior and values. The power distance index (PDI) determines how much a culture is willing to accept and expect an inequality of power. Societies with high PDI are more willing to accept powerful authority figures, such as a hierarchy, and comply with their rules without justification. Societies with low PDI work to equalize the distribution of power and demand justification for inequalities of power. Societies categorized with large PDI expect for their elders to be both respected and feared, parentsRead MoreThe Culture Of Spain And Spain1153 Words   |  5 Pagesis defined by income and has become flatter throughout history (Cultural Information - Spain). Money is the only obstacle to moving between classes and people of all classes can easily be friends. Spanish people do value how they are seen in society, however, and will sometimes stretch their income to appear more well-off (Cultural Information - Spain). Spain does still a small nobility class and one must be born into it (Cultural Informati on - Spain). There is still some inequality in Spanish societyRead MoreMarx s Views On Capitalism1320 Words   |  6 Pageswell. The contradiction is entirely illogical, as social means are expended to generate production, albeit the commodity belongs to the individual capitalist, also known as the bourgeoisie. Equally significant, this system creates inequality as the workers receive low income wages, while the owner obtains all the commodities produced in the factory. This creates excessive tension between the proletariat and bourgeoisie, that is yet to cause the system to shatter. Due to the fundamental contradictionRead MoreThe Constitution Act Of 18671683 Words   |  7 Pagesbegan a cycle of social, physical and spiritual destruction in which fundamentally resulted to economic, social, health and gender inequality. With that being said, the following paper will examine the long, and often bitter series of cultural encounters and exchanges that took place after confederation, such as the brutality of residential schools, health inequality and the Oka crisis dispute. In terms of aggressive assimilation, residential schools deemed to be the most effective way to civilizeRead MoreImpact Of Globalization On The Workplace1104 Words   |  5 Pagesthe less powerful members of organizations and institutions accept and expect that power is distributed unequally.†(Hofstede, para. 3) This suggests that a society’s inequality is as much the higher classes’ doing as it is the lower classes’. †¢ Uncertainty avoidance – â€Å"Deals with a society’s tolerance for uncertainty and ambiguity† (Hofstede, para. 4). Often, the more strict a society is, the more uncomfortable its people will be in unstructured situations because that is how the culture develops