Income inequality can be described simply as the gap in income between the richest and the rest. This phenomenon has increased in the UK over the past 30 years and is seen as an economic problem, leading to economic instability rather than growth and social problems. According to current research, trade is widely blamed as the cause of increasing income inequality and this policy brief will then recommend policy to resolve income inequality. The Gini coefficient is a commonly used measure of income inequality in a country nowadays, showing that the higher the number, the greater the degree of income inequality. The diagram shows the Gini coefficients for initial, gross and disposable income, UK, from 1977 to the financial year ending 2018. The data set shows an increasing trend, meaning that inequality of income in the United Kingdom increased slightly, from 31.4% to 32.5%. That is to say, the difference between the highest and lowest paid workers in the UK is growing. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get an original essayAn old saying goes, “The rich get richer while the poor stay poor.” Income inequality is a vicious cycle. The rich have resources to invest, which creates new wealth, and are therefore more likely than the poor to earn a higher income. And sometimes this inequality prevents economic growth in the UK, according to an OECD study. In a finite economy, it is impossible to forever pursue higher returns for those who are already wealthy. This shows that economic growth via income inequality is inefficient and unsustainable. Additionally, income inequality can lead to social friction. This can help precipitate higher levels of crime and lead to the downfall of all members of society. Generally speaking, income inequality can have a negative impact on the UK economy and society. That's why Minister Jones said: "The government must do more to reduce inequality." As for the cause of income inequality, trade contributes to it. Growing trade between the UK and other countries has increased the number of imports, so fewer products are needed for production in UK industries, which also leads to a loss of jobs. In this case, unskilled or semi-skilled workers suffer greatly. Industries no longer need as many workers as before and are laying them off. As a result, income inequality could widen between unskilled and skilled workers. It is clear that this trade phenomenon is leading to a fall in employment, a decline in labor market participation and an increase in income inequality in the UK. The possible policy solution to this trend is to make exports more competitive in the market. I propose to depreciate the pound sterling by lowering interest rates in order to increase exports and decrease imports. However, in case of depreciation greater than 10%, the interest rate will stop falling. Otherwise, a serious economic recession is likely to occur. Lower interest rates will lead to nationals and foreigners saving less money in UK banks. As a result, the demand for books decreases and depreciation exists. When the relative monetary value of the pound sterling declines against other countries, less./