Problems Faced By Growing Inequality Essays

922 Words Jul 11th, 2016 4 Pages
Today, unfair treatment gradually emerging in the world due to the rising inequality. It is no doubt that the issues which are brought by growing inequality should be highly-regarded by the government. To be specific, there are three main challenges for the government, which is produced by increasing inequality: it hinders the development of economy, it evokes political concerns, and generates the social difficulty. As time goes on, the increasing disparity between the wealthy and poor is one of the greatest challenges, and it severely impedes economic development. Since widening income gap, the number of poor people will increase, and the poor will become poorer. Consumer spending drivers the growth of economic. Hence, the poor do not have enough money to spend destroy the development of economy. According to Pomeroy (2014, p.1), the wealthy are becoming wealthier and have more power on “economic pie” while the poor are becoming poorer through capital accumulation at an extremely rapid rate. As we all know, the economy like a big pie. People who hold wealth can acquire more as increased capital accumulation. In other words, due to the fixed size of the pie, a bigger slice of the pie belongs to the wealthy means the smaller slice for the rest poor as time passed. Hence, it generates more inequality. With inequality rising, the poor account for the majority of society. Therefore, the global economy turns into slow growth as the consumption of most people dropped.…

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