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Sample Dissertation Chapter Paper on Mod 6 A: Income Inequality

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Sample Dissertation Chapter Paper on Mod 6 A: Income Inequality

Income inequality refers to an uneven distribution of income in the economy (Jaumotte, Lall, & Papageorgiou 28). There are various negative consequences that are associated with income inequality in the country. One of the major consequences of income inequality is that it affects economic growth due to the low level of investment in the country. Income inequality is also associated with social problems such as increased crime. Another major consequence of income inequality is that it creates political instability. Where there is income inequality, the rich tend to manipulate the government in their favor hence creating political instability in the country. Income inequality also affects the health of the population. In countries with a high income gap between the poor and the rich, the education is also affected by the majority of the population lack access to quality education (Jaumotte, Lall, & Papageorgiou 28).

Income inequality can affect the democracy of the country. When there is income inequality, the economy of a country depends on few wealthy individuals in the country. As a result, these individual have the capacity to influence the government to pass laws and regulation in their favor thus limiting democracy in the country. To reduce income inequality, the government should raise taxes for higher income earners and reduce tax for low-income earners. The government should also invest in public infrastructures and concentrate on offering public services such as health, and education. The government should also implement a minimum wage rate to reduce exploitation of the poor (Jaumotte, Lall, & Papageorgiou 298).

Mod 6 B: Globalization and Poverty Reduction

Globalization plays a major part in reducing poverty in the world (Kaplinsky 39). Globalization leads to increased international trade and investments, which create employments. As a result, the majority of the poor are able to get a job, which helps, in reducing poverty and increasing their living standards. Globalization also fosters economic growth and, as a result, the government is able to offer good public services and social amenities. Globalization also accelerates innovation and increase diffusion of technology hence creating new economic opportunities (Kaplinsky 46).

 

 

 

 

 

 

Works cited

Jaumotte, Florence, Subir Lall, and Chris Papageorgiou. “Rising Income Inequality: Technology, or Trade and Financial Globalization&quest.” IMF Economic Review 61.2 (2013): 271-309.

Kaplinsky, Raphael. Globalization, poverty and inequality: Between a rock and a hard place. John Wiley & Sons, 2013.

 

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