Is Income inequality good or bad for society

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Income Inequality
Income inequality is the unequal distribution of resources leading to disparities in income among the population. Analysts attribute that nearly half of the US population wealth is similar to the wealth of thirty richest Americans (Ryscavage 4). Income inequality is continually growing across the globe and is bad for any economy. Unreasonable control over the economy by the wealthy, undermining the economic fairness of the system and differentiated shares on the values of goods produced by workers are some of the reasons for income inequality in any economy.
Uneven distribution of wealth leads to income disparities in any nation. Wealthy individuals form cartels to lobby the government to implement policies of wage cuts or minimum wages, thus increasing the firms’ profits at the expense of the workers. Most corporate in the USA have always pegged the performance of executive to their pay while low cadre workers earn dismal incomes even when the firm makes supernormal profits. Most capitalist economies make it hard for low-income earners to access credit due to the stringent policies such as having collateral or guarantors to guarantee one’s loan. However, the wealthy easily bypass such policies due to their influence in the society, further increasing unequal distribution of wealth in the community. Consequently, the wealthy can influence the society to their liking negating the importance of the masses in nation building.

Economic inequality undermines the importance of creating equal opportunities in the society. Capitalist economies have been built to encourage private activity, primarily owned by the wealthy, denying the poor opportunities similarly available to the rich. Higher Education in most nations costs a premium forcing the poor to wait on scholarships or ultimately fail to attain higher education. Recent reports by Oxfam indicate the economic inequality has forced the poor to depend on the wealthy to create employment opportunities and dictated terms of employment. However, economists believe that changes in the public financing of education and political campaigns bridge the gap between the poor and the rich. Equal opportunities in colleges and universities ensure that the poor can share the national cake almost equally in the economy. Therefore, economic inequality starves off the creation of equal opportunities in the society.
The wealthy negate the doctrine of fair share while sharing revenues of goods produced by its workers. Economists primarily use the Difference Principle advanced by John Rawls, intimating that equitable distribution is untenable if doing so worsen the current situation of the worst hit in the society. The doctrine intimates that the economy operates at full employment of resources, though analysts expect workers to receive their beneficial share fully. However, its collectively agreed that the consequences of unequal distribution of the fair share are also challenges in trying to mend a faulty system. Fair share is highly unlikely since the laws are construed to benefit the wealthy. The moral tenets of the discussion are biased, thus limiting the worse-off individuals’ participation in significant nation building efforts. Consequently, income inequalities negate the principles of fair share in the society.
Conclusively, income disparities are a challenge in most societies since its leads to adverse effects on a nation’s economy. Income inequalities in the society have been caused by the increased control of the economy by the wealthy, failure to acknowledge fair share in the distribution of revenues after productions and undermining the economic fairness in the economic system. Therefore, income inequalities adversely affect economies in the globe.
Works Cited
Ryscavage, Paul. Income inequality in America: An analysis of trends. Routledge, 2015. Print.