Income Inequality Essay: Income inequality is a word used to describe an income of a defined geographic area disparity distribution of wealth, “The poor become poorer, the rich become richer.”
Income inequality means that a small number of people residing in specific areas receive the most of the total income generated. In contrast, most people receive only a small share of the total income. When the gap between high income and low-income residences is getting higher, that means increasing income inequality.
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Long and Short Essays on Income Inequality for Students and Kids in English
We provide children and students with essay samples on a long essay of 500 words and a short essay of 150 words on the topic “Income Inequality” for reference.
Long Essay on Income Inequality 500 Words in English
Long Essay on Income Inequality is usually given to classes 7, 8, 9, and 10.
Income inequality within the majority of developing countries has been rising – in several cases, sharply over the years. In the last two decades, many surveys have seen a significant and symmetric rise in within-country inequality in developing countries. This continuous rise in income inequality in many developing economies has made it hard to reduce poverty and promote economic development. There is a growing consensus that excessive inequality can stunt growth.
The effects are not only economic; there are also political and social consequences of income inequality. Extreme income inequality can also have undesirable political and social consequences. We also see high inequality is linked with higher crime rates, lower life expectancy, and conflicts. In general, income inequality brings about heap loads of trouble, and the causes can be from large demographics and education.
Throughout the years, many economists in India of great reputation have said that despite the so-called Hindu rate of growth of 2% increased to 7% after 1991. But when it comes to income inequality, India is not so innocent. After conducting various surveys last year, it has been established that India’s top 1% population controls up to 58% of the country’s total economic condition, which is reckoned to be higher than the global figure of around 50%.
A common characteristic between low and high income is that the high-income family has two workers. Compared to the household with only one income earners, this doesn’t mean all households with a single income are poor. We also see Upper, and lower-class people tend to marry the same class people. Thus in low and high-income families, they have two low and high-wage earners, respectively. Even more, single parents face financial trouble, especially when there are only women as the family’s economic pillar.
Thus this shows that gender is another reason for income inequality. Technology has resulted in rising income inequality because it has replaced many workers at a factory job. Now more complex operated machine requires technically skilled workers. With advancing technology, skilled labour increases, and non-skilled labourers will get replaced by machines and skilled labour.
Thus, the low pay labour forces appear as the supply is more than demand— for example, cheap labour units from low pay, high growth rate country, China, and Bangladesh. To stabilize this extremity, first, introduce a minimum wage policy. The government should imply a minimum wage to protect the employee while increasing the tax rate to decrease rich people’s income.
However, this policy will have a disadvantage, as higher-wage companies will have less motivation to hire workers while more labourers will be attracted to the workforce. Thus, disequilibrium will occur where labour demand and supply are unequal, and the unemployment rate will rise. After the minimum wage policy, education will be an important way to combat income inequality. The best solution for both causes is giving easy access to education. However, policymakers shouldn’t overstate the potential of education as this will give people equal chances to compete as they will have the same education level.
Short Essay on Income Inequality 150 Words in English
Short Essay on Income Inequality is usually given to classes 1, 2, 3, 4, 5, and 6.
Income inequality is a phrase used to describe an income difference between the poor and the rich of a specific geographic area. Income inequality will affect a nation’s social and economic developments. A major cause of income inequality is demographics. The same classes’ income people usually stick to the same classes people. Gender is another cause of income inequality. A female’s income generally is less than a male worker’s.
Also, education and technology is a cause of income inequality. College graduated and professionally skilled people receive a higher income than an uneducated or less-educated worker. Income inequality is unfair. Income inequality will slow down the country’s economic growth, and more poverty as the citizen has low standard and performance.
Income inequality causes political instability, and the country’s economic development slows down. The minimum wage policy will be able to control income equality and reduce poverty. Access to better education is another solution, where all people can have a better education to have equal skill levels and get standard wages.
10 Lines on Income Inequality in English
- Income inequality refers to the gap between low and high-income demographics.
- Income inequality leads to political instability in a country.
- Income inequality also causes a rise in crime rates and stunts economic growth in a country.
- In India, 1% of the demographic controls the earnings of 58% of the mass population.
- Demographics is a reason behind income inequality.
- Education also affects income inequality.
- Introducing a minimum wage policy will ensure to decrease income inequality and provide everyone with standard living.
- However, the minimum wage policy will also have a set of disadvantages.
- Access to better education will also help decrease this income gap as people will have the qualification and choice to work in different firms and earn more.
- We have to solve this issue of income inequality to live a better and fair life.
FAQ’s on Income Inequality Essay
Will taxing the rich fix income inequality?
Because high-income people pay higher average tax rates than others, federal taxes reduce inequality.
Which country has the lowest income inequality?
According to the GINI index (World Bank estimate), the country ranking number one in the lowest income inequality in South Africa with a rate of 63.00%.
How is income inequality reduced?
Income inequality can be reduced directly by decreasing the income of the richest or increasing the poorest incomes.