Economic Growth vs. Economic Equality
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This paper reviews the reasons why economists think there is a conflict between our desire for economic growth and our desire for economic equality. The paper explains how unequal distribution of income has been the catalyst of revolutions, wars, new economic systems, and continuous class struggles, but it has also been a necessary condition for economic growth. The paper then summarizes the debate on the question of whether economic inequality in our society is declining.
From the Paper:"On the one hand, it is argued that in the early stages of development, economic growth inevitably results in a growth in income inequality so that savings and incentives for investment can be generated. These factors, in turn, lead to increased innovation and productivity, and ultimately economic growth. On the other hand, in developing countries higher incomes are not necessarily associated with higher savings and investment; but rather only with inequality. Here, raising the levels of living of the lowest income groups would contribute to higher labour input and efficiency, and promote increased participation of the population in the process of development. This, however, seldom if ever happens.
"It can be said that inequality is one of the unwritten laws of nature--everyone knows that some have more than others. This tenet applies to all relationships, regardless of their size. Inequality exists between groups of people, within individual countries and also between them. It "is a phenomenon about which most men and most groups are quite conscious." This stems from its long history."
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Economic Growth vs. Economic Equality (2003, October 09) Retrieved April 20, 2021, from https://www.academon.com/term-paper/economic-growth-vs-economic-equality-38383/
"Economic Growth vs. Economic Equality" 09 October 2003. Web. 20 April. 2021. <https://www.academon.com/term-paper/economic-growth-vs-economic-equality-38383/>