Factors Contributing With The Growing Of Income Inequality Essay

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What factors contribute with the growing of income inequality? There are three primarily factors that contribute with the exponential growing of income inequality. The first factor that economist attribute to the income inequality is the globalization. Globalization frames industrial revolution and international trade. The industrial revolution provided enormous changes for the economy in a global level. It provided new technology to improve agriculture and give the opportunity to develop what it is known as industry. It also promoted trade, improved transportation, and the conditions of living of people. Such improvements were exploited for the wealthiest countries. This actions caused that richest countries could keep improving and developing new strategies to grow their economy and left behind the countries that do not have the same advantage to persuade the innovations of industry. The poorest countries are forced to share their resources and their workforce, as they are not capable of creating industries as the richest countries do. This actions leads to trade. In other words, developed countries bring their capital and investments into those countries that produce them a greater benefit. If the country do not get the amount of expected benefits, the rich country have the option to withdraw their money and take it to other countries to make better deals. Globalization has helped billions but also affect a large portion of the population globally. Richard Freeman (2011)
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