2. Economic Inequality
• Is an important indicator of equity in an economy, and has implications for
other social outcomes such as crime and life satisfaction.
• The data and statistics affirm that gap between the rich and the poor has
grown, rather than diminished, with sustained growth in income
• The three richest people in the world possess more financial assets than the
lowest 48 nations combined
3. The extent of concept
Inequalities refer to the uneven distribution
of income across the population or
individuals within society
The gap between the rich is inevitably
consequence of growth and development
the high inequality raises a moral question
about fairness and social justice
4. Statistics
• Almost half the world (3 billion+) live on less than $2.50 a day
• 3 of every 4 living on less than US$1/day live in rural areas
• 22,000 children die each day due to poverty
• For every $1 in aid a developing country receives, over $25 is spent on debt repayment
• 1998 global spending
o US$17 billion on pet foods in Europe & the US
o ~US$6 billion basic education for all
o ~US$9 billion water & sanitation for all
o ~US$12 billion reproductive health for all women
o ~US$13 billion basic health and nutrition
6. Inequlaity in The States And Canada
• Wage inequality
• Colorado minimum wage: $7.64/hour
• Denver average 2011 CEO salary: $735,979
• $353.84/hour
• Source: salary.com
• The country’s business elite – the chief executives of the top 100 companies – took home 122 times what
the average worker did in 2012, up from a ratio 84-to-one a decade earlier, according to research
commissioned by The Globe and Mail.
• Inequality grew faster in Canada from the early-1990s to 2010 than in all but one other OECD country. The
concentration of income in the hands of the richest 1 per cent was 10.6 per cent in 2010, down slightly from
the pre-recession peak of more than 12 per cent, but up sharply from 7.1 per cent in 1982
7.
8. • As development proceeds, the earnings of different groups rise
differently. The incomes of the upper-income and middle-income
groups rise more rapidly than those of the poor, during the early
stages of growth through which India is passing at present shift of
population from agriculture which is a slow growing sector to the
modern large industrial sector which grows more rapidly. Again,
there is the capital-intensive nature of the development of the
modern sector. Since this absorbs less labour, wages form a smaller
proportion of total income. Hence, the income spread is not wide
enough. On the other hand, the capital-intensive type of growth
leads to concentration of income in those few hands who supply
capital.
9. Social problems
in rich developed market democracies for
Inequality
• Internationally comparable data on life expectancy, on kids' maths and
literacy scores, on infant mortality rates, homicide rates, proportion of
the population in prison, teenage birthrates, levels of trust, obesity,
mental illness -- which in standard diagnostic classification includes drug
and alcohol addiction -- and social mobility. in one index. It proves
that the more unequal countries are doing worse on all these kinds of
social problems.
10.
11. Rising income inequality is a source of social and political unrest as it can
lead to social discontent and higher crime rates, in turn undermining
investor confidence and adversely affecting the business environment and
a country's economic growth. Across a number of Arab states, high
unemployment and growing inequality has fuelled political and social
unrest from early 2011
Higher income inequality can also result in non-
income disparities such as health and education, thus
hindering a government's effort to reduce poverty. High
incidence of poverty remains a severe problem in some Sub-
Saharan African and South Asian countries;
A widening income gap can impede the development of a
country's consumer markets as purchasing power becomes
concentrated among a small elite. In Kenya, for example, the
richest 10.0% of households (decile 10) spent on average
14.3 times more than the poorest 10.0% of households
(decile 1) in 2011.
12. Crime Rate & Violence
• Tendencies for violence to be more common in societies where income
differences are larger. Crime rate has also been shown to be correlated with
inequality in society. There have been over fifty studies showing tendencies
for violence to be more common in societies where income differences are
larger. Research has been conducted comparing developed countries with
undeveloped countries, as well as studying areas within countries. Higher
income inequality led to less of all forms of social, cultural, and civic
participation among the less wealthy. When inequality is higher the poor do
not shift to less expensive forms of participation.
13.
14. ConclusionEconomic Inequality is a significant
social problem. The Global
recession has led to the cut of
work- , children are deprived
of education because their parents
have no jobs anymore. This issue
lead to theft, fraud, migration and
other social immoralities which
caused disorder to our society. I
wish we could minimize the the
differences we have in the world
we live in for a better peaceful
tomorrow.
