The Problem Of Extreme Poverty

1297 WordsNov 27, 20146 Pages
In the last 10 years, the end of extreme poverty has been a top priority in the inequality equation. A report by the World Economic Forum 's Global Risk states that inequality in 2013 is a big global risk. The world should immediately put in place objectives that abolish extreme inequality around the globe. The net income of 2012 from the 100 richest billionaires was $240 billion, which could end extreme poverty 4 times over. Having so much money and power in such few hands, causes depressed demand. Money must be shared around more equally thus it would give individuals more spending power which in return, drives economic growth upwards and inequality downwards. Neoliberalism is both a policy and economic theory. The theory states that a big free market economy not only represents the ideal of free individual choice, it can also attain the best possible economic performance with regards to economic growth, efficiency, distributional justice and technical development. The State is given very little role in economics, such as: defining property rights, regulating money supplies and implementing contracts. The common dispute in support of neoliberalism is that economic globalization should put forth a optimistic result on economic growth due to its penalizing effect on domestic economy and budget policy. To draw foreign investments, a Government budget should be in line, the inflation should be under control and interest rates free to adjust to the international economic

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