Income Inequality

With the manufacturing industry going overseas for profit; a large amount of possible jobs are lost to the Australian job market which results in unemployment amongst the lower classes. This stifles the flow of wealth in the economy and halts social mobility. Social mobility is the movement of individuals within or between the various social strata, all possessing different opportunities and responsibility. In a perfectly mobile society, ones class of origin wouldn’t affect ones opportunities to transition to any of the classes within the class hierarchy. This is a system where individuals may climb the class hierarchy with only their merits, thus resulting in a meritocracy rather than an oligarchy. However due to the current economic system …show more content…
Is a childish notion.” (Kerr edition, p.127). Moreover, H.I.L.D.A contradicts Mill’s hypothesis by showing the in 2010 the Median wealth in Australia was a little less than $400,000, compared with the mean wealth of almost $700,000. The gap between these two measures indicates that wealth is not equally distributed; a disproportionate share of wealth is held by the wealthiest households so that the distribution of wealth is positively skewed (R.Wilkins, D. Warren, M. Hahn & B. Houng, 2010). A common criticism leveed at lorenzs curve is that it only represents the economy at a certain point where the wealth has moved to the capitalist and not where the capitalist distribute the wealth throughout the society. However, wealth can never be evenly distributed in a capitalist sociaty if unemployed workers exists. This is due to the fact that in order to gain wealth in society they must sell their labour on the labour market and if the labour market is unaccessable to them then they can’t gain wealth, rather the wealthy accumulate richies due to the power they possess over the labour