Blog #13 Rising income inequality a threat to Asia’s growth, stability: ADB

The article is about the widening rich-poor divide that is threating Asia’s growth and stability.  The article says that governments and address the problem by spending more on education and health, creating quality jobs and investing in infrastructure.  This could reduce social problems that can lead to inefficient populous policies.  The recent growth in Asia should have brought 240 million people (6.5% of the population) out of poverty.  Instead inequality grew larger as economic growth took off.  This year Asia is set to grow slower than last year.  Income in the Richest house-holds has increased with 20% of the total income taken by the wealthiest 5% In most of the region.   The article points out that the growth has been from technological progress, globalization, and market-oriented reform, which are the same factors that created the divide between the rich and poor.  The poor people that don’t have access to learn these skills will not take part in the economic growth.  

 

This what’s happening here in the article seems to be a trend that is happening in several other countries.  Income inequality is rising because the rich are getting richer and the poor are not getting and richer.  It’s as though the poor pour are locked out of this circle of prosperity.  I think the article puts out a good solution with improving education and investing in infrastructure as long as this extra spending in education will go to the poor and to those that don’t have access to learn the skills that are valued now and where the growth is coming from.  The growth as a country as a whole is great and makes the Global income inequality seem likes its going down however it’s not a real reduction in Inequality because the shrinking in global inequality is matched with a gain of inequality in those countries that are shrinking the global inequality.   The world is become more divided as a whole as other rich people in countries are getting richer and the poor are staying poor.

http://www.livemint.com/2012/04/11092123/Rising-income-inequality-a-thr.html?h=A1

Blog #12 India, China see inequality rise with high growth: IMF

The article talks about how China and India have made great gains economically recently.  With that growth has also came a growth in inequality. The IMF said they need growth but they need equitable growth.   Christine Lagarde the managing director from the IMF said to the Brooking institution (a Washington based think tank) that the IMF has been advocating an economic shift in demand from external deficit to surplus countries as the key to re-balancing the global economy. She also explained that based on the IMF research, more equitable distribution of income can help promote economic and financial stability.  Brazil is a country that has dropped its inequality a lot since 1990, and if other countries could reduce inequality as much as Brazil, periods of high uninterrupted growth would last 50 percent longer. The article concludes by saying the answer is to improve competitiveness and have better functioning labor markets so that we can generate more jobs, and get people back to work. 

I believe this is a great article that tells how financial inequality holds back economic growth.  China and India have been growing rapidly but with an increase in inequality means that the really poor people are gaining wealth much slower than the better off.  The greater the income inequality the growth will not last as long is what the article claimed.  I believe this to be true.  The rich depend on the poor to run their factories and produce at low wages they also count on everyone to buy these products to turn around and make more products and grow.  If there are less people with the ability to buy these products because increasing inequality then the growth slows until it comes to a creep and we get into a situation with high unemployment because these manufacturers do not need so many works now that demand is lower.

http://profit.ndtv.com/News/Article/india-china-see-inequality-rise-with-high-growth-imf-301847

Blog #11 Americans make up half of the world's richest 1%

The article talks about where the riches one present of the world’s population lives.  Not surprisingly half of the world’s richest one percent lives in America (29 million people).  Another 4 Million live in Germany and the rest are scattered threw out Europe, Latin America, and some countries in Asia. If you make $34,000 a year after taxes per person living in your household including children then you qualify as being in the richest one present of the world.   Although many countries are going fast like China, and India with a large portion of their population getting richer they are starting from very low making them still very far from the richest one percent. There middle class citizens would be on food stamps in the United States.  As defined by median income the world’s true middle class live on $1,250 a day. 

This article is a great example to what global income inequality is.  The middle class in America is in the richest one percent of the world.  A homeless man on the streets in America that can get $4 dollars a day by asking people at stop lights for money is making more money than the world’s middle class.  Even the poorest people in America are above the world’s average income standards.  This wealth gap between America and the rest of the world is a result of many things.  Many counties around the world have very low literacy rates; Cheap labor, are run by dictators, and don’t have the infrastructure to make products with their natural materials.  Manny American companies take advantage of these pour counties low labor rates and build wealth off of the poor countries.  

http://money.cnn.com/2012/01/04/news/economy/world_richest/index.htm

Blog #9 India, China helping decrease global inequality: IMF

The article talks about inequality around the world primarily in India and China.  According to the International Monetary Fund the rise of India and China has lowered global inequality. Global inequality is driven by high rates of growth with higher living standards. With China and India being two of the most populated countries in the world the increased income to the countries helps a great deal with the inequality. IMF said that much of the growth came from access to finances and grater access to banking braches lowered income inequality in the US. China and India moved up on the list of the top 25 systematic trading centers.

China and India making more money helps global inequality go down a lot, because of there populations but what about the rest of the very poor countries.  The labor and cheep products produced by India and China are mainly purchased by the US.  I don’t think Bangladesh is getting any richer.  This is a good example of how two largely populated countries bring the mean wealth of the world up without all the countries in the world actually being more prosperous. 

http://economictimes.indiatimes.com/news/politics/nation/india-china-helping-decrease-global-inequality-imf/articleshow/9958292.cms

blog #8Wage inequality 'getting worse' in leading economies

The article is about research by the OECD think tank that examined 22 countries that have the world’s leading economies finding income inequality growing in 17 of them.  They studied data from the 1980’s to the financial crisis of 2008.  Chile, Mexico, Turkey and the United states were the most unequal nations.  The UK had the fastest growing inequality hitting its peak in 2000.  Even traditionally egalitarian countries experienced a growing wealth gap.  The OECD found globally the richest 10 percent of the population is nine times richer than the poorest 10%.  Some countries the inequality is much worse.  The UK The richest 10 percent are 12 times richer than the poorest 12 percent.  The OECD says the changes in the labor market over the last 30 years are to blame claiming technology has benefited the highest paid while poorer workers have been forced to take jobs that are temporary, part-time or badly paid. 

I am not surprised by what article discuses.  The technological advances has definitely had an impact on the poorest people in the societies because their jobs are being taken over by automated machines.  If the owners of the companies purchasing the automated machines no long have to pay for labor and over time end up making more money with the automated machines hence a larger income inequality gap.  I speculate that unemployment rates have also contributed to the inequality gap.  The poorest 10% percent of populations are usually uneducated compared to the rest of the country.  People with low education are hit hardest by unemployment not the Top executives and top 10 percent of the population.   This also contributes the Income inequality growth.  I agree with one of the statements in the article “Without a comprehensive strategy for inclusive growth, inequality will continue to rise”.

 http://www.bbc.co.uk/news/uk-politics-16012293

Blog #7 UN Finds Global Inequality Rising

 

A UN report says the world is more unequal today than it was 10 years ago, even though there has been considerable economic growth in many regions.  Living standards have improved in some places poverty remains entrenched in others.  The article says focusing only on economic growth is an ineffective way of achieving development because wealthy nations are the main beneficiaries of economic development.  The UN Economic and social affairs department found the wealth gap is larger than a decade ago and called for immediate action.  Counties like china and India have seen considerable income growth, but there is a wide income gap.  There is 2.8 Billion people living on less than2 dollars a day.  There is also a gap between skilled and unskilled workers holding up the UN development agenda.  

I feel this article makes a lot of good points. Gross Domestic Product is what many use to measure Economic growth.  GDP is a measurement of well-being and prosperity threw a countries total product of goods and services.  For the developed countries, holding GDP as there measurement of prosperity is much less accurate than a poor county.  GDP for poor countries is a good measure of growth and improvement especially countries were many are living on less than 2 dollars a day.  If they are producing more goods and services the country will be making more money.  With more money the people can buy more food, get better medical attention and education, and buy medicine improving the living standard of the people in the country.  A lot of the poorest countries don’t have the structures in place to produce more goods making it hard to fight poverty and have economic growth.

http://news.bbc.co.uk/2/hi/americas/4185458.stm

Blog #6 Inequality between rich and poor highlighted by UN panel

The extremes between the rich and poor internationally have become a threat to global stability.  This was one of the issues discussed at the UN commission for social Development.  Present at the meeting were top UN diplomats, Officials from UN agencies, and representatives of non-government organizations.  Ambassador Jorge Valero the permanent representative from Venezuela blames the growing inequality on the excess of global capitalism.  Valero said Inequality and poverty are some of the outstanding issues on the international agenda. These problems can only be fixed by attacking the structural causes that generate them: a consumerist, selfish, and predatory global system based on the commodification of man and nature.  Dr. Ortiz Associate director of policy and practice at UNICEF said “National redistribution is not enough to address Inequality.  There is a strong link between high income inequality and social unrest and economic instability.” Mr.Chong of Baha’I international community noted “the relationship of dominance-one nation over another, one race over another, or one class or gender over another contribute to inequitable access to resources and knowledge.”

 I am sure there are soon to be laws, Bills, and acts, which are set into motion to help prevent, slow, or reverse global inequality.  However the article brings up several really good points.  I agree with Ambassador Valero when he said there is “a consumerist, selfish, and predatory global system based on commodification of man and nature.”  People’s greed for profits increase inequality as they seek out the cheapest possible labor they can find on the planet.  Consumerism fuels the greedy drive of capitalists.  I would like to point out that the consumerism is not coming from impoverished nations, but developed established nations.  Consumerism is not sustainable, and to make a real change in improving global equality there needs to be a collective effort of many people all around the world to help with the social issue.

http://news.bahai.org/story/886

Blog #5 Davos: At World Economic Forum, Income Inequality A Major Concern

Income inequality is becoming a major concern.  In the Swiss Alps, the wealth gap has been identified as a source of misery and unrest.  World-wide income inequality has been cited as a problem that needs immediate attention in the annual World Economic Form summit in Davos, Switzerland.  Some of the wealthiest Davos attendees said the current lopsided distribution of wealth is unsustainable, the “global social-economic order will chance, if we want it to or not”.  The forums Global Risk report said “severe income disparity” is the most likely problem to affect the world over the next 10 years.  The Davos summit has come only after nearly a year of international protests for a lack of economic opportunities.  1 percent of the world’s family’s control 40 percent of the wealth and one third of the world’s workers (1.1 Billion people) are unemployed of impoverished.  Protesters are spending this week in igloos and staging demonstrations outside the conference center all part of the occupy movement. 

The issue of Global inequality has been identified as a social issue and there are groups of people getting together to make change.  I feel eventually there will be policies made to help redistribute wealth from the riches 1 percent to impoverished people of the world.  These changes are not going to be easy especially because the riches 1 percent holds so much power in the political seen today.  The capitalist market has definitely contributed to the inequality, and will continue to as long as the corporate owners keep trying to cut cost by reducing pay or moving jobs to counties that allow extremely low wage rates.     

Income Inequality Overstated, Sudy Says.

In Canada income inequality has increased however the concern is overstated.  A new study by the University of Calgary’s School of Public Policy says that the income inequality issue has not taken into account taxation and redistribution.  According to the study the long term growth of inequality has been offset by the scale of income redistribution and growth in income overall.  From 1976 -2008 Income inequality has it record highs at the same time average household income also hit record levels of $63,500.  The study also found that inequality was much lower after taxes and transfers due to a graduated tax system and social benefits for the lowest income earners.  Stephen Richardson The author of the studies argues that “measuring only the amount of income inequality for a given population has limited use in public policy discussion.”  The OECD says the redistribution is less efficient drop from 70 per cent offset to 40 percent from the mid 1990’s to today.

I agree and disagree with Richardson.  Redistribution threw taxation definitely helps with the growing income inequality however it is not a problem that can simply be offset by some income redistribution.  I would like to know who was included in the statistics of their average household income, because if it included every household the average could be increasing because of the extreme growth of the extreme rich.  After taxes income inequality is much lower but how much lower is the question.  The OECD says that the tax-benefits system has become less efficient in offsetting the income inequality over the last 15 years and inequality is still growing then maybe the Inequality is not overstated. 

http://www.cbc.ca/news/business/story/2012/02/09/inequality-gap-study.html

Somalia was suffering threw a famine however the famine is over now thanks to good rains, a bumper harvest and donor aid.  Even though the famine is over 2.34 million are at high risk of malnutrition and insecurity.  Over the next 90 days it is critical that Somalia gets support until rain comes in April.  If they are not helped then they will suffer from famine again and many will die.  Although conditions are improving still 31% of the population are in need of emergency humanitarian assistance.  The famine that stuck Somalia killed sands of tens of thousands of people half of the deaths were children under 5 years old.  If there is a reduction in aid from the international community Somalia’s improvements can be reversed. 

Some countries in the world are suffering from relatively high unemployment at 8.4% while other countries are suffering from famine with over 30% of the country malnourished.  The world consists of extreme poor and extreme rich.  Some countries embraced capitalism and industrialization while others did not.  Somalia is a poor country with many struggles which could be the visual results of the difference between countries that didn’t embrace Capitalism and countries that did like the United States.  Both countries have problems that they are dealing with but if you take a step back and look at the severity of these problems there is a major difference.  One is worried about jobs which is a big issue however an issue like famine is on another level.  Somalia is relying on other countries for aid while the people in America rely on organizations within the nation for aid.

Blog #2 What India and America have in common: Inequality

The Article focuses on inequality in the world’s two largest democracies, India and the United States.  In both counties there is a growing gap between the poor and the supper rich, at the same time some social inequalities have started to decline.  In India certain historically disadvantaged groups are now politically assertive, and in America discrimination against minority groups is declining.  The articles tells about how the rich are rich because they have access to better schools, health care, nutrition and social support than the poor.  While there are adverse neighborhood effects for poor children in inner cities in the U.S and in Indian villages can have similar or worse effects on the poor.   The answer to improving this inequality is to improve education, create more jobs, and increase productivity, however the U.S, and India neglect education for the poor and infrastructure.  The answer is because the Rich do not use these public services.  In India a few hitherto subordinate social groups have begun to enter the political and economic elite but instead of changing conditions for the poor they adopt values of the rich.

The world is always going to have changing inequalities.  The inequalities from the rich and the poor have only become more unequal because of the nature of how the Inequality gap began to open.  The more money someone has the more power they have.  Threw the capitalist systems people have been able to become extremely wealthy and powerful.  Their children are born into an ascribed status of super-rich and have many resources to achieve a higher status.  While for the poor it is the exact opposite the are born into a poor ascribed status lacking the resources to achieve higher status. The Rich can use their money to influence politicians to pass laws and loosen restrictions that benefit themselves even if it is in conflict of helping the poor.  Improving public education where most of the poor are is not at the top of the list for the rich because their children aren’t in public schools.  If the poor can’t get better educations the inequality gap will keep widening. 

http://globalpublicsquare.blogs.cnn.com/2011/12/06/what-india-and-america-have-in-common-inequality/