Introduction
This essay aims to explain why income inequality and poverty are major social problems on a worldwide scale. The tendency toward poverty and income disparity is also a long-term phenomenon that involves the growing convergence of a distinct minority. For instance, Asian Americans, Mexican Americans, and African Americans. There are numerous causes of poverty and economic disparity and numerous methods for resolving them. Nevertheless, poverty is brought on by the enormous income gap because this global socioeconomic issue affects billions of people, particularly in the South.
Regarding poverty and income inequality, some ethical questions are troubling. Stopping income inequality and increasing wages are the best ways to address this issue and prevent individuals from living in poverty. Additionally, minorities living in areas of poverty should pay less for healthcare. The rates of poverty and economic disparity should decline if these problems are resolved. Low or no earnings, cheap housing, a lack of government support, education, and other global societal issues caused by poverty and income disparity have ethical repercussions. Global society is viewed as a problem because it will continue for a very long time and cannot be entirely stopped.
Background Information on Income Inequality and Poverty
Thirty-five percent of the world’s population, or 1.8 billion people, lived in extreme poverty from 1990 to 2015. Here are some of the primary causes of debt: in most nations, people do not have access to clean water; instead, they drink from unclean ditches and wells; they also suffer from a lack of nutrient-rich food because they cannot afford to purchase it. There are already 800 million people in the globe who are hungry, and over 2 billion people are without access to clean water. Then, a person has little to no chance of having a means of support or even a job; other people might not have access to transportation to work.
According to Concern Worldwide, U.S. conflict contributes to poverty through violence in nations like Syria. Some people, including those in Europe, believe poverty and income inequality cause crimes and violence. The third reason for poverty is income inequality, economic inequality, and social inequality. Regardless of its nature, any difference indicates that something is not equal (Pickett et al.,2015). Since children did have access to transportation, inadequate education is one of the major contributors to extreme poverty. Another is that people with debt have been impacted by climate change. When it comes to poverty, several factors contribute to it. The effects of poverty and income disparity on Mexico, Chile, the United States, and Turkey are important topics of discussion. When it comes to differences among OECD members, these nations experience the most difficulties. The lowest poverty and income disparity rates have historically been seen in Denmark, Slovenia, and the Czech Republic. These nations prove that the greater the difference, the more detrimental it is to grow. People in these nations believe that economic factors play a role in the case for policy change just as much as social issues do. If these issues are not resolved, it may force governments to interfere with those nations’ social and political structures, damaging their long-term prospects for economic development.
Solutions to address economic inequality and poverty
Raising the minimum wage and funding accessible, high-quality early care and education are the two solutions that would help eliminate poverty. Regarding income inequality, it has a different history and is more dependent on the underlying changes in the global economy. However, income will eventually rise in developing nations like China, Brazil, and India. Because of the increase in the minimum wage in the United States from $7.25 to $10.86, which enables at least 4 million people to escape poverty, some of these nations can compete with others in the global marketplace.
While investing in childcare and early education may make raising a child more expensive, most low-income families will be helped to escape poverty by providing youngsters with head start programs with education and reading. According to, wage growth is a factor in income disparity as well. The amount that some people make when making the minimum payments is why they frequently fall below the federal poverty line.
Making it more accessible for a person to receive health insurance, paid time off for illness, or a pension plan from their company is another strategy to combat economic disparity and poverty worldwide. The easing of income inequality, resolving concerns with an individual’s wellbeing, and reducing their health problems and poverty can all be achieved if these elements can be assisted.
Arguments that are in support to global problems
The rise in economic disparity in recent years has raised several issues and implications. However, these catalysts have sparked a flood of discussion on these changes, and there are arguments demonstrating that there is no match when it comes to merits because all of the attention is focused on disparity when it should be diverted to the actual issue, which is poverty. Some individuals may agree that having too much debt is a severe social flaw, but wealth disparity is also an issue. People living in poverty do not have access to basic comforts or necessities and lack self-respect and dignity.
However, the pope stated that poverty and all forms of the evil stem from economic inequality. The pay increase will be beneficial to many workers. Raising the minimum wage to at least $12 per hour by 2020, as well as overtime compensation, will aid in reducing working-class poverty. Some people are, nevertheless, impacted by the minimum wage because it fluctuates depending on where they live, either going up or down. People with little to no job-market expertise, like Mexican immigrants, will be among the population groups who would gain from the increase in earnings.,or households with little income (Pickett et al.,2015). Everyone, including minors, would profit from a salary increase.
The Wage Act of 2017 was passed based on information discovered in April of this year, and it states that the minimum wage will increase in eight different ways to around $15.00 per hour in 2024. By 2025, there will be another adjustment due to the median wages. An increase of $2.13 per hour will be given to employees who receive tips from their jobs (Fosu & Gafa,2020). By raising the minimum wage to $15 per hour by 2024, at least 22.5 million more individuals will be lifted out of poverty and income disparity. Adults who work for their families and see an improvement in their pay make up most of those who work. The purpose of labor legislation is to guarantee that all employees receive equal compensation for equal work. Additionally, it demonstrates how raising the minimum wage can lessen poverty and income disparity and increase purchasing power.
Fosu, A. K., & Gafa, D. W. (2020). Progress on poverty in Africa: how have growth and inequality mattered. African Review of Economics and Finance, 12(1), 61-101.
https://journals.co.za/doi/abs/10.10520/EJC-1d054f2855
Income disparity and the decline in poverty have been compared when evaluating a worldwide sample. However, there is another issue at play: indirect channels and how they can help lessen income disparity and poverty (Herzer & Nunnenkamp,2013). According to the data, economic inequality and poverty are inversely correlated, with poverty decreasing as income inequality rises. There are worries that the government must deal with poverty and income disparity. Since the 1980s, the amount of debt in the world has decreased.
Herzer, D., & Nunnenkamp, P. (2013). Inward and outward FDI and income inequality: evidence from Europe. Review of world economics, 149(2), 395-422.
https://link.springer.com/article/10.1007/s10290-013-0148-3
Recent studies have shown that persons in residential employment and earnings regarding offshoring and outsourcing will harm people with low skill levels in the workforce. Pay tends to have a detrimental impact on those with limited or no abilities. However, it may or may not rely on where they work regarding FDI on payments made outside the country and income inequality (Kujala et al., 2019). While the short-run is a little different and is good, both negatively influence income disparity. Increased salaries will lead to lessened income inequality, which will lessen poverty. However, there are both beneficial and harmful long-term effects of salary, both within and outside. When it comes to a wage increase or drop, certain nations suffer more than others.
Kujala, P., Kallio, J., & Niemelä, M. (2019). Income inequality, poverty, and fear of crime in Europe. Cross-Cultural Research, 53(2), 163-185.
https://journals.sagepub.com/doi/abs/10.1177/1069397118799048
According to a study, wealth inequality and poverty levels in Europe are somehow associated with crime. Additionally, others worry that income disparity may or may not impact debt. People in Europe believe that there is a correlation between crime and violence when it comes to income inequality and poverty. There are variances when it comes to individual-level independent factors that contribute to the link between fear and crime. This study also suggests that deprivation and fear of crime are strongly influenced by education. Trust, and crime rates are both impacted by income disparity and poverty. It will be clear how crime and violence will decline if there is a level of both wealth inequality and poverty on a global scale. Due to levels and other factors, but rather as a result of crime and violence, Europe was a region that did not experience poverty or income inequality.
The statistical data
In 2000, Africa saw growth that was 8.0% more than what was reported in the statistics. However, a comparison between 1990 and 2010 had the target year of 2015 of 28.3 percent. Because it demonstrates how income in Africa decreased by 4.3% between 1990 and 2009 and how it still ranks as the second-most unequal region in terms of poverty, this information is valid and reliable. According to a GDP ratio, government spending, and taxation, as well as other fiscal measures, have a significant impact on alleviating inequality and poverty. The correlation between fiscal decentralization and poverty, however, has been demonstrated by Yao, who found that some signals point to non-linear statistical data. This information is trustworthy because it was derived using the Gini coefficient, which demonstrates an erosion of the fiscal policy’s impact when it occurs. The information in this data is not biased.
Strength and weakness
A person can earn more money at work if they work harder due to the benefits. Regarding inequality and poverty, rewards are yet another asset, and some people may experience a trickle-down effect that results in them earning more money than usual. Another strength is fairness on the job, which refers to how someone should receive a more excellent salary if their qualifications or abilities satisfy the requirements. Being unable to set prices fairly for consumers is the problem. Due to how variance might produce conflict, there is yet another flaw. One of the most significant differences in inequality, along with the inheritance of wealth, is unemployment.
Ethical outcomes
Child wellbeing and income disparity are negatively connected and closely related. The average income of an individual is unaffected, yet there is a link between children living in poverty and measures that correct income inequality. When it comes to the absence of a correlation between average income and children’s wellbeing in 2013, another difference has remained constant in the wealthiest nations (U.S. Census Bureau, 2019). The results demonstrate that, due to ethical concerns, children born into families with low socioeconomic status would suffer the most in terms of their wellbeing and its long-term effects in every country and region of the world. However, there is proof that some affluent organizations will eventually reduce these disparities. This result has more to do with society’s commitment to greater equality than it does with any particular welfare policy or potential interventions affecting sick children. The fact that certain nations have programs to assist them in better addressing ethical issues, implications, and the causes of problems with children’s welfare is a drawback. The beneficial result is hunger or a lack of nutrient-rich food, and poor health also contributes to poverty and income disparity. Poverty is mainly caused by a lack of shelter, and a lack of education is another moral problem.
Conclusion
The global prevalence of poverty and economic disparity demonstrates how an individual’s situation depends not only on the subgroup they belong to, the area they live in, and the minority they belong to. As with other regions of the United States, the South is mainly affected by poverty. The most impoverished Americans are black, Mexican, and Asian. In terms of wealth disparity, Europe is the region where people are most afraid of crime. Income inequality also has an impact on how much personal health insurance costs and how it is provided. Due to their inability to purchase health insurance, some people have even passed away. Wage increases, hunger relief efforts, the availability of cheap housing, and government support are the most remarkable ways to address the problem of worldwide societal poverty and income inequality. If businesses increase the fees they charge their employees, some of these solutions may be aided because they will not harm the business and will improve the workplace. Lowering food prices or increasing government assistance to individuals would both be effective ways to end hunger.
People’s lack of housing options is one of the primary causes of poverty in today’s society. If they lack the money to pay for affordable housing, poverty, and economic disparity will also harm them. Individuals may rely on government help too much, and there are more people on welfare than there should be. People who can work should do so, while those who are unable to work should receive government support. Because they do not have the same access to resources as people who live in the United States, some people need these problems to be resolved abroad.
References
https://www.facebook.com/thebalancemoney. (2022). The Cause of Income Inequality in America. The Balance. https://www.thebalancemoney.com/income-inequality-in-america-3306190
hunger. (2009, December 28). Exploring the mental health effects of poverty, hunger, and homelessness on children and teens. Https://Www.apa.org.
https://www.apa.org/topics/socioeconomic-status/poverty-hunger-homelessness-children
Pickett, K. E., & Wilkinson, R. G. (2015). Income inequality and health: a causal review. Social science & medicine, 128, 316-326. https://www.sciencedirect.com/science/article/pii/S0277953614008399
The top 11 causes of poverty around the world. (2022, August 12). Concern Worldwide. https://www.concernusa.org/story/causes-of-poverty/
U.S. Census Bureau. (2019, April 16). Income and Poverty in the United States: 2017. Census.gov. https://www.census.gov/library/publications/2018/demo/p60-263.html
Annotated references
Fosu, A. K., & Gafa, D. W. (2020). Progress on poverty in Africa: how have growth and inequality mattered. African Review of Economics and Finance, 12(1), 61-101. https://journals.co.za/doi/abs/10.10520/EJC-1d054f2855
Herzer, D., & Nunnenkamp, P. (2013). Inward and outward FDI and income inequality: evidence from Europe. Review of world economics, 149(2), 395-422. https://link.springer.com/article/10.1007/s10290-013-0148-3
Kujala, P., Kallio, J., & Niemelä, M. (2019). Income inequality, poverty, and fear of crime in Europe. Cross-Cultural Research, 53(2), 163-185. https://journals.sagepub.com/doi/abs/10.1177/1069397118799048
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