Explain Why Is Inequality Inevitable

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 also incorporates the idea that, “economics equates changes in the happiness of a society with changes in its purchasing power” (Layard, ix). In reality this is completely inaccurate, because quantity of things does not determine happiness. Success is merely a aspect of your status and opportunity, highly correlated with education, and employment status. In addition, some countries incorporate cultures that allow them to adapt and form habits of saving, innovation and hard work. Important differences among nations include the way institutions that regulate the economy and govern the way competition occurs. Most income inequality is between countries rather than within them, because money is distributed equally within every country yet the world's income distributed unequally. These dramatic differences in income levels, reflect both massive productive potential of the capitalist economic system and the uneven distribution of the results of the capitalist economic growth process. The growth and distribution are contingent on institutions that manage the processes of production and pattern of international exchange and

Inequality is defined as ‘‘The unequal distribution of valued social resources within society or between societies’ (Blakeley & Staples, (2014 ) p13, 25). Thus it is the

Classification of what causes inequality lies in two different classes in a broader sense, which are; individual causes, or external conditions leading to income inequality ( Rousseau, 1992). In simpler wording, the causes of inequality lie within endogenous causes and exogenous conditions.

The sociological views of functionalist and conflict theorist on stratification and economic inequality have had profound impact on the current economic discussion. In the past, economist have argued that wealth inequality is essential for “economic strength and social stability. [5] That wealth inequality “is needed to reward hard work, talent and innovation”. [6] However, in recent years, many economist have come to the conclusion that extreme wealth inequality, can lead to economic stagnation and social instability. What degree of

Inequality is a problem that has had an effect on the United States for many years. Although throughout the years the severity of inequality has fluctuated, it has increased greatly within the past two decades. There are many factors that could have influenced this increase. Some of the factors include technology and deindustrialization.

Inequality.org states that Income inequality is the unequal distribution of a household or individual income across various participants in an economy. It is the percentage of

When thinking about social institutions and how they shape society, it becomes clear that they have a very large role in maintaining inequality. The very nature of social institutions make them very hard to change and when an institution begins based on, or allowing for inequality, it can be extremely difficult for things to change.

It can be argued that the trend for global inequality is that “The rich get richer, the poor get poorer.”

Income inequality has been a major concern around the world, and it mainly links to how economic metrics are distributed among individuals in a country. Economists generally categorise these metrics in wealth, income and consumption. Wilkinson and Picket (2009) showed in their studies that inequality has drawbacks that lead to social problems. This is because income inequality and wealth concentration can hinder or delay long term growth. In 2011, International Monetary Fund economists showed that less income inequality increased the duration of countries’ economic growth spells more than free trade, low government corruption, foreign investment or low foreign debt (Berg and Ostry, 2011).

described as unfair or uneven treatments of the people within the society or unequal distribution of

Income inequality is necessary for a capitalist society to thrive as it provides competition, hard work, and innovating ideas (Sutter).

Inequality is ubiquity in our world, most people are looking at the downside or the surface of this phenomenon. In fact, that inequality is the drive of historical and social progress.

Inequality can be defined as "the unequal distribution of valued goods and opportunities in society" Class divisions show great variance between wealth, education, income, and opportunities. Capitalism plays a big role on