Cause Of Economic Inequality

Today, unfair treatments have been gradually emerging in the world due to the rising inequality. The government attaches great importance to issues which are led by growing inequality due to they grow increasingly serious. To be specific, there are three main challenges which are produced by increasing inequality, is faced by the government: the growing inequality hinders the development of the economy, evokes political concerns, and generates the social difficulties. The increasing disparity between the wealthy and poor is a critical issue, and it severely impedes economic development. The number of poor people will increase, and the poor will become even poorer as the wealth gap widens. Moreover, the poor do not have enough money …show more content…
When the rich become richer, the money will guide the government policy in favor of the wealthy. The article “Working for the Few” (2014, p.2) states that the governmental decisions are conducive to the rich, and the government officials make an effort for higher wage earners. In other words, a great number of businesses or the rich are favored by politicians because they have more resources. The significant bias appears in the political system due to politicians need the contributions that from the wealthy or big business in a campaign. In “For Richer, for Poorer” (2012, p.4), the author indicates that the unequal political treatment was gradually revealed after the outbreak of the financial crisis in the early 2000s. The author explains this by showing the wealthy were rescued while the poor people lost their work and home after the crash. Specifically, “loose monetary policies” which public by the government that allow the bank increases the money supply, and reduces loan interest rates produced the benefit to the wealthy. However, rising unemployment rate after the crash made the poor get even poorer which led to wider inequality. Consequently, the political issue becomes more prominent with the increase in inequality, and the preference of policies will lead to greater …show more content…
The extreme inequality is already contributing to social polarization, which causes the poor to be less happy and leads to social turbulence. According to Oishi, Kesebir & Diener (2011, p.1099), Americans who earn less money will feel unhappy with the expansion of the income gap due to unjust treatment and lack of trust. As the gap between wealthy and poor increase, the poor feel like they are victims of social injustice. Therefore, they cannot easily trust others and feel unhappy. Moreover, in “For Richer, for Poorer” (2012, p.4), the author states the inequality hinders the poor to get the chance of education, triggers a hatred for the rich, and is a threat to the development of the society. In other words, people feel resentful toward the rich if they lose their opportunity for education. The hatred of the rich psychological increasingly affects the constructing of the harmonious society. As a result, the unfair treatment and opportunity threatening the stability of the