The Relationship Between Economic Growth and Income Inequality income inequality and growth through economics. Inequalities can be viewed from many angles: economic, social and political. To solve this problem, economics also uses empirical and theoretical insight. Lack of regulation and insufficient funds are just some of the reasons that affect almost everyone. Many economic authors argue that it is difficult to analyze the impact of income inequality on growth when other influencing factors are not taken into account. The purpose of this research is to examine the impact of income inequality on economic growth and whether it can be reduced. The theoretical structure of this research analyzes concepts such as economic growth, income inequality and the relationship between the two. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essayProblem Statement Globally, especially after World War II, income inequality is the most frequent topic of global debate. The long-term negative influence on economic growth is due to increasing income inequality. Therefore, the causes and ways to address this problem are essential for financial stability and development. Introduction Inequality as a term has been used a long time ago and has roots in history. Individuals often associate it with the various opportunities available to them. Additionally, opportunity may be an important concept and it affects many areas, but the causes of income inequality run much deeper. Considering that in the global picture there are more poor people than rich people, this shows that inequality affects most people. In the United States, since 1970, income inequality has increased and much research cites the gender wage gap as a significant problem. It is important to mention that differences between periods recalling history, differences between countries and individual incomes help to examine the determinants of inequality itself. The United States achieved a stable level of household income in the 1950s and 1960s, while from 1965 to 1979 the United Kingdom reduced the income depression. However, the American trend until the 1970s can be explained by Kuznets' reassuring theory that the United States was one of the most industrialized countries in the world. Nowadays, Kuznets' theory is less relevant because it focuses more on the service sector than on agriculture and manufacturing. Economist Adam Smith, in his book Wealth of Nations, states: "A man educated, at the cost of much labor and time, to one of those jobs which require extraordinary dexterity and skill...". This statement shows the importance of investing in education and human capabilities because more educated individuals with effective skills are more likely to have higher income than ordinary individuals. However, we must consider that not all individuals have the opportunity to study and, even if this is the case, having the same opportunity does not guarantee that each of them will have the same skills and obtain actually his diploma. Wage inequalities play an important role in determining theoverall income and standard of living of the individual. to live in general. On the other hand, salaries are the easiest to measure, used in many studies and there are many datasets on this topic. Poverty is generally increasing and the situation is getting worse instead of better and many authors mention government corruption as one of the main reasons. Available data shows that there is a strong correlation between government corruption and social exclusion, which affects income inequality. The interesting fact mentioned by the research is that social exclusion is a more relevant predictor of corruption than GDP per capita. When it comes to the gender wage gap, studies show that there are still differences in their wages, indicating that women and men do not work or operate in an equal labor market and that there might even be differences in terms of occupation. In theories that explain the causes of income inequality, it is also important how to measure it. The concept of equity or even the term poverty is different from inequality. Well-known economists such as T. Malthus, D. Richard and A. Smith virilely focus on taking into account factors such as capital, labor and capital to solve this problem. The modern economist, compared to the classical economists above, focuses more on the income of each household. Wage Inequalities There is something common to all of society and that is that none of them has an equal share and distribution of wages. Wage distribution has been best measured by the Gini index. Assets are not shared equally, however the differences explained by the Gini index represent a range from 0 to 100. According to author Anthony B. Atkinston in his book "Inequality", explains that inequality or Gini coefficient shows that India and China are close to 50. percent, and more than 40 percent, which is high, is found in Brazil and Mexico, including other Latin American countries . Considering this, next comes the United States, then the United Kingdom. Regarding the comparison based on the Gini coefficient, continental Europe has higher income inequality than the Nordic countries. Starting in 1962, wealth increased from 11% to 16% in 1995 in the United States. Higher wealth makes people more secure and also contributes to political power. Additionally, America's wealth is not distributed equally among its citizens. Increase in real GDP The increase in real gross domestic product shows economic growth and GDP is used to measure national income (wages, interest, rents, profits). Researchers have shown that increasing economic growth does not guarantee increasing wages. It can happen that GDP increases while the average salary does not change, or even decreases. This can be explained by the fact that profit represents a significant part of GDP. The other fact is that an increase in real GDP cannot be seen at the same time as an increase in population. This means that if there is a 4% increase in population and the same percentage of real GDP, there will be no change in GDP per capita or real wages. However, a company may earn higher profits but not necessarily share them for the benefit of its employees. Total income equality and its consequences Compared to some underdeveloped countries, some individuals even live below the poverty line, and higher inequality is directly linked to a higher percentage of individuals living poor. The researchers claim, based on..

Essay / The Relationship Between Economic Growth and Income Inequality income inequality and growth through economics. Inequalities can be viewed from many angles: economic, social and political. To solve this problem, economics also uses empirical and theoretical insight. Lack of regulation and insufficient funds are just some of the reasons that affect almost everyone. Many economic authors argue that it is difficult to analyze the impact of income inequality on growth when other influencing factors are not taken into account. The purpose of this research is to examine the impact of income inequality on economic growth and whether it can be reduced. The theoretical structure of this research analyzes concepts such as economic growth, income inequality and the relationship between the two. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essayProblem Statement Globally, especially after World War II, income inequality is the most frequent topic of global debate. The long-term negative influence on economic growth is due to increasing income inequality. Therefore, the causes and ways to address this problem are essential for financial stability and development. Introduction Inequality as a term has been used a long time ago and has roots in history. Individuals often associate it with the various opportunities available to them. Additionally, opportunity may be an important concept and it affects many areas, but the causes of income inequality run much deeper. Considering that in the global picture there are more poor people than rich people, this shows that inequality affects most people. In the United States, since 1970, income inequality has increased and much research cites the gender wage gap as a significant problem. It is important to mention that differences between periods recalling history, differences between countries and individual incomes help to examine the determinants of inequality itself. The United States achieved a stable level of household income in the 1950s and 1960s, while from 1965 to 1979 the United Kingdom reduced the income depression. However, the American trend until the 1970s can be explained by Kuznets' reassuring theory that the United States was one of the most industrialized countries in the world. Nowadays, Kuznets' theory is less relevant because it focuses more on the service sector than on agriculture and manufacturing. Economist Adam Smith, in his book Wealth of Nations, states: "A man educated, at the cost of much labor and time, to one of those jobs which require extraordinary dexterity and skill...". This statement shows the importance of investing in education and human capabilities because more educated individuals with effective skills are more likely to have higher income than ordinary individuals. However, we must consider that not all individuals have the opportunity to study and, even if this is the case, having the same opportunity does not guarantee that each of them will have the same skills and obtain actually his diploma. Wage inequalities play an important role in determining theoverall income and standard of living of the individual. to live in general. On the other hand, salaries are the easiest to measure, used in many studies and there are many datasets on this topic. Poverty is generally increasing and the situation is getting worse instead of better and many authors mention government corruption as one of the main reasons. Available data shows that there is a strong correlation between government corruption and social exclusion, which affects income inequality. The interesting fact mentioned by the research is that social exclusion is a more relevant predictor of corruption than GDP per capita. When it comes to the gender wage gap, studies show that there are still differences in their wages, indicating that women and men do not work or operate in an equal labor market and that there might even be differences in terms of occupation. In theories that explain the causes of income inequality, it is also important how to measure it. The concept of equity or even the term poverty is different from inequality. Well-known economists such as T. Malthus, D. Richard and A. Smith virilely focus on taking into account factors such as capital, labor and capital to solve this problem. The modern economist, compared to the classical economists above, focuses more on the income of each household. Wage Inequalities There is something common to all of society and that is that none of them has an equal share and distribution of wages. Wage distribution has been best measured by the Gini index. Assets are not shared equally, however the differences explained by the Gini index represent a range from 0 to 100. According to author Anthony B. Atkinston in his book "Inequality", explains that inequality or Gini coefficient shows that India and China are close to 50. percent, and more than 40 percent, which is high, is found in Brazil and Mexico, including other Latin American countries . Considering this, next comes the United States, then the United Kingdom. Regarding the comparison based on the Gini coefficient, continental Europe has higher income inequality than the Nordic countries. Starting in 1962, wealth increased from 11% to 16% in 1995 in the United States. Higher wealth makes people more secure and also contributes to political power. Additionally, America's wealth is not distributed equally among its citizens. Increase in real GDP The increase in real gross domestic product shows economic growth and GDP is used to measure national income (wages, interest, rents, profits). Researchers have shown that increasing economic growth does not guarantee increasing wages. It can happen that GDP increases while the average salary does not change, or even decreases. This can be explained by the fact that profit represents a significant part of GDP. The other fact is that an increase in real GDP cannot be seen at the same time as an increase in population. This means that if there is a 4% increase in population and the same percentage of real GDP, there will be no change in GDP per capita or real wages. However, a company may earn higher profits but not necessarily share them for the benefit of its employees. Total income equality and its consequences Compared to some underdeveloped countries, some individuals even live below the poverty line, and higher inequality is directly linked to a higher percentage of individuals living poor. The researchers claim, based on..

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