Summary:
The
Organization for Economic Co-operation and Development, or the OECD, is trying
to urge governments to priorities policies that help reduce inequality in pay
while also boosting growth. The growth is getting higher education or to get
more women into the work force. These recommendations were announced during the
G20 finance meeting in Istanbul. The OECD suggests that pro-growth policies
widen inequality rather than help it shrink. Research of pro-growth policies
found three main patterns. These are some technology inequalities; some promote
labor forces creating more of a wide in wage dispersion; finally, a good number
of changes, like better access to education, “unambiguously reduce wage
dispersion” with also changes possibly to household income inequality. The conclusion
that the OECD came up with is that many countries need to tackle the rising inequalities,
making them the priority. Some other recommendations for governments will
include low borrowing costs to allow investment into infrastructure; cutting
barriers to entrepreneurship and research; and promoting cross-border trade and
investment.
Analysis:
I do
believe that policies need to be made that will assist in lowering the
inequality rates before we tackle making higher financial gain. The OECD is
making great ideas in plans, several impressive ideas to make the inequality
less. The OECD makes multiple reports that highlight increases in income
inequality. They try to come up ways to overcome the inequality and create
actual support to make policies that will help these inequalities. After they
make analysis of policies and locate the crucial parts, they create plans that
will specifically help with the inequality. I believe that they should really
consider doing this more often as it will help make things a lot more even. I
will read up more on other reports that the OECD has made that affect different
locations. If this actually works, there will finally be more equality.
Elizabeth Causby
February 13, 2013
10:43pm
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