Does Income Inequality Necessarily Get Worse In The Process Of Economic Growth?

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In this essay, I am going to discuss if income inequality should necessarily get worse in the process of economic growth. Before going into that point, we need to define what income inequality exactly means and how it is measured. Income inequality depends on who would make the economic growth, apart from how much economic growth to be achieved(Todaro & Smith, p.208). Ideally speaking, income inequality should be abandoned, not too much wealth of the economy should be enjoyed by the rich, and the middle-class should be the majority income group of the economy. If the primary goal is to minimise the income inequality, although it is highly difficult, it is possible by restructuring the economy. However, that income gap between the rich and the poor gets bigger does not necessarily mean that it is bad for the poor. The lower income group can possibly earn more than they earn when the total income is distributed more equally meaning that the income gap between the poor and the rich is smaller. However, of course, clearly there are several problems arising when the income inequality becomes severe. We will further discuss below. …show more content…
When this gap gets bigger, we say that the income inequality gets worse. Although it is unavoidable that some people with better skills make more money than others with less skills in our capitalist world, too much gap between them is not desirable as this can lead to various problems in the economy and in the society. A commonly used method of measuring income distribution is ‘Lorenz Curve’ presented

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