What Is The Problem Of Income Inequality

Throughout the world, there are different nations that face major issues in terms of income distribution throughout the country. Specifically, India has been plagued with a severe wage gap between the urban and rural sector of the nation. There is a variety of factors that play a role in a lack of income distribution; but what is most important is the fact that it displays a troubling economy and proves that while a nation may appear wealthy, the standard of living for the majority may be insufficient. While India’s economy may have shown signs of improvement after the fall of the British Raj, there will prove to still be a great deal of income disparity today as a result of government corruption, a lack of education in specific regions, and …show more content…
As mentioned previously, after India regained control in 1947, much of the principles and laws enacted by the British were adopted by the new Indian government. Today, there are numerous government policies in India that precede the countries liberation in 1947. For example, the Indian Contract of 1872 (dealing with law), the Partnership Act of 1932 (dealing with partnerships), and The Banking Regulation Act of 1949 (dealing with currency) all serve as active regulations for the nation. Without modifying and replacing these policies, they become outdated and no long apply to current market situations. More specifically, The Industries Act of 1951 required all new industrial operations to apply for a servicing license from the government. This policy drastically discouraged foreign investment and increased the need for government officials to accept illegal compensation from large corporations. In a period nicknamed the “License Raj”, actions such as these spiked between 1947 and 1990. Essentially, with all aspects of the economy being controlled by the state, there is a lot of manipulation done in favor of certain corporations. In 2008, it was reported that about 40% of government officials in office used some form of bribery in order to be elected. In 2009, 120 of 524 (about 22%) parliament members in India were accused of crimes mostly related to some for of bribery. These statistics …show more content…
Without the ability for one to receive education and therefore obtain a higher wage in the workforce, there will continue to be an immense wage gap in a nation. In India, education runs under both the private and public sector which receive funding on a central, state, and local level. While education in India may be considered somewhat successful in specific regions, the overall status of education is considered poor due to the fact that certain regions have illiteracy rates close to 50%. There exist three general issues in terms of education in India and those include location, attendance, and fulfillment. The ability to access a school’s facility is essentially the most important component. With little investment in education by the government, there exists very few schools across vast rural regions meaning that the nearest school may be miles away. A lack of funding also prevents the ability for schools to bus children to and from so that they may be provided an education. With that being said, if you are outside of a realistic walking distance from school, it becomes much more challenging to receive an education. In part with location comes attendance to class. Without general access to schools, students physically can not attend. There is no requirement for students to attend class due to the numerous factors that exist possibly preventing attendance. This means that there is little motivation