engleski

Negative Consequences of Global Trend of Income Inequality Growth within Countries and Public Policies to Increase Social Equality

Social inequality is a relational phenomenon. Different types of inequality can be seen, such as gender, racial and ethnic inequality, inequality between citizens of a country, global inequality and so on. Inequality between individuals and households within a community are measured the most. These values are calculated according to differences in wealth and income. Measured inequalities are expressed through Gini coefficient and Theil coefficient, and through different income ratios between the richest and the poorest members of a society. Through the analysis of inequality indicators questions can be answered about reduction or rise in social inequality. Also, this analysis answers questions about desirability of economic, social and other consequences of a specific level of inequality. Full equality is neither possible nor desirable, while significant and growing inequality is seen as a cause of many economic and social dysfunctions. In most countries, quite the opposite from ideological promises, consequences of the introduction of free market economy have been slow economic growth and increase in social inequality. This trend of income inequality growth has become globally dominant in the last forty years. Wherever this trend was dominant economic growth slowed down, social cohesion started to break down and all aspects of quality of life were reduced. Other than showing that most causes that reinforce the trend of social inequality are a consequence of conscious ideological or political decisions and not the “objective” historical or economic circumstances, and pointing out harmful consequences of income inequality growth, the aim of this paper is to suggest and explain public policies designed to reduce income inequality. An evaluation of feasibility of these policies will be discussed as well. More equality within a society can be brought about, especially by changing income, tax and social policies.

inequality ; income policy ; social policy

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