Introduction
We live in an unequal world and things are not going to get any better. According to a study by anti-poverty charity Oxfam, the wealthiest 1% will own more than the rest of the world’s population by 2016.
Globalisation has been one of the main drivers of global inequality. When the Soviet Union fell apart and China started to grow, the global economy received over a billion of new workers. This has brought outsourcing to its peak and the value for unskilled labour has decreased. This has created the complete opposite effect for skilled workers where wages have gone up. Over the years this has created a huge global income gap.
Main causes of inequality
There is now an intensive trade competition, much competitive than in the past, risen trend in real prices for primary goods – energy, minerals, food and water which boosts inflation and squeezes living standards. In my opinion, in terms of global inequality and its solution, it is about improving the living standards of the poor, rather than make the living standards of the rich worst.
Globalisation has increased international trade as well as investment. This has dealt to the signing of international free trade agreements such as the GATT and regional trade agreements. Information costs have also been reduced which leads to a de-fragmentation of the industry. Due to the free trade agreements, companies have started to outsource their production capabilities (mainly) to countries such as China and India
It is a commonly accepted that inequality is increasing throughout the globe, with startling statistics such as the recent Oxfam report indicating that the richest 85 people in the world own more wealth than the poorest 3.5 billion people(Oxfam Australia Media, 2014). Inequality is thought of as disparities or gaps, such as the distance between a low income and a high income household, or the ratio of their incomes (Divided We Stand, 2011). Domestic inequality refers to inequality within a country and
In today’s capitalist economy, where economic transactions and business in general is centered on self-interest, there is a natural tendency for some people to make more than others. That is the basis for the “American Dream,” where people, if they worked hard, could make money proportional to their effort. However, what happens when this natural occurrence grows disproportional in its allocation of wealth within a society? The resulting issue becomes income inequality. Where a small portion of the population, own the majority of the wealth and the majority of the population own only a fraction of what the rich own. This prominent issue has always been the subject of social tension
This is a topic that had been lingering in the shadows until the Occupy Wall street movement made many take a good look at the inequalities that exist all across the board. Vidal states that “the outrage of Occupy was directed at the top 1 percent of the population, an elite class consisting mainly of investment bankers, corporate executives, and layers who currently own 35 percent of the total net wealth in the United States.” (Anderson pg 270) Vidal explains that in order for us to fully understand economic inequality we need to take a look at the stagnation of living standards experienced by millions of
Economic inequality has been steadily growing over the past decades. According to this article, “In more recent years, accumulation of wealth by economic elites has received greater attention. Not only are the rich becoming richer, but the disparities are growing the fastest at the top. In the United States, for example, growth in wealth has occurred mainly at the very top of the scale.” (Hansen 457). This means that wealth begins to expand and business owners earn more, however pay more but not a lot more then previously. This would be a good thing, but not everyone in America is a business owner. In fact, the majority of citizens slightly benefited from the growing economy. While most view the economy as unequal, the upper class and even U.S representatives consider it fair and justified (Kraus and Callaghan
According to the Credit Suisse Global Wealth Databook America is now the most unequal of all advanced economies (Eric Zuesse). The 185 richest families in America are worth 1.2 trillion dollars combined (Dolan and Kroll). Additionally, the 400 richest Americans have more wealth between them than the bottom 185 million (Social Problems 33). Now it is often thought that the one percent in America controls one-third of the nation’s wealth. The sad reality is that the Americans in the top one percent actually control 35.6 percent of the wealth which is more than one-third of the nation’s wealth. What’s even sadder is that the top ten percent of America controls over seventy five percent of the total wealth (Dave Roos). What this means is that the remaining twenty five percent of the nation’s wealth is distributed among ninety percent of the United States population. There are approximately 321 million people in the United States, and approximately 289 million of them are only responsible for twenty five percent of all the nation’s wealth (United States Census Bureau). The inequality gap has increased for a number of reasons. For
Globalisation is the internationalization of trade and often forces businesses to adopt new strategies for operations to suit different cultures and economies. The often easily saturated domestic market has triggered many large
Economic inequality among countries has been declining due to the increased inequality within countries. This has been mainly caused by the introduction of globalization, resulting in the decline of production in the developed countries. For instance, in my global issues class, we had to discuss globalization and whether it was a good or bad thing. Whereas, some of us said it was a good thing, few of my classmates stated that globalization is known for making the rich even richer, and increasing uneven economy within
Specifically in the United States globalization has created a system of increasing income inequality. The value of education and technological advancement has meant that those who can afford college and the changing technology are more likely to succeed and thus see a growth in their economic viability, while the opposite exists for those who cannot.
More than 3 billion people in the world are living in poverty, with 1 billion of them being children (Unicef Human Development Report, 2014). Oxfam, is an organization dedicated “to help create lasting solutions to the injustice of poverty” (Oxfam.org, 24, March 2011). Oxfam was founded in Oxford, England, in 1942 by Cecil Jackson-Cole. The organizations first goal was to raise funds to feed the children in war-torn Greece during the second world war. After war’s end the organization focused on helping impoverished countries thrive. Oxfam started to go international in the 1970s, as many affiliate Oxfam’s were founded. Oxfam now is an international confederation of 20 countries. Oxfam raises money through campaigning, donations and by selling
Depending on the terms in which you look at globalization, it may or may not perpetuate global inequality. Globalization like the PowerPoint states is, “the process of increased interconnectedness.” In terms of globalization in a cultural form, it does not in any way, shape, or form perpetuates global inequality. If more globalization happens in a cultural sense, there would be more diversity and more diversity means that we can embrace differences. However, in terms of economics, globalization is based on status and that is where global inequality might come into play. There is a gap between the poor and rich. According to the PowerPoint, there are people who have to take that extra step to maintain a life that is still not so great by working
Global distribution of wealth and opportunity are two concepts that can be referred as the reason to why there is such an immense difference between the rich and he poor in the world. An egalitarian system has been part of society until the concept of hunting and gathering has become part of society. This brought the different role gender play when it comes to income and to this day, it continues to affect all parts of the world. At present, 35.6% of the U. S’s wealth is held by the top 1% wealthy people in the U.S while only 12.8% of the world’s wealth is held by the bottom 80% of the U. S’s poor population. This by itself is very infuriating and disturbing fact. One if the main cause for this absurd difference between the wealthy and poor is the concept of capitalism. Moreover,
This essay will set out to show that there is no moral reason people should hoard obscene amounts of wealth while millions are starving and going without adequate shelter, education, healthcare, and many other utilities that should be thought of as basic rights. It will then provide a detailed summary of solutions on how to tackle socio-economical inequality in light of excessive compensations to CEOs and the rest of the 0.1%.
Oxfam is non-commercial organisation which is fighting against poverty.Oxfam stands for Oxford Committee for Famine Relief.For the first time the creators of Oxfam met together in October 1942 in Oxford, to discuss with the government the opportunity to decrease(reduce) the allied blockade of occupied Europe and cover feeding of imperative alleviation key to civilians.Oxfam was created with 8 various members the(famous) powerful one was Jackson-Cole a London businessman(Web Cache,N/A).This became now Oxfam GB and still based in Oxford, Oxfordshire.Oxfam GB started to become more popular and well known by opening their first regular shop in 1948.Goal of this project is recognize the main stakeholders of the company and what
Mercantilist explanation for global inequality and poverty is that trade liberalization doesn’t benefit all people and nations. Free trade only works if a nation has: a strong financial sector, medium to high education levels, and strong governance. Strong financial sectors allow investors to identify new and promising sectors and redirect credit to them. A more educated population is able to develop new skills by growing sectors and adjust quicker to the constant changing labor market. Trade liberalization only benefits developing nations that are able to take advantage of free trade to its fullest ability. These nations industries have something to sell which foreign trade barriers are currently keeping out. Developing nations have the resources
Geography, climate, food, animals, and resources all contribute to the inequality of the world. The world is unequal because of geography. Geography controls all of the contributing factors to inequality because they needed the right resources to have the ideal living situation.