POVERTY AND INCOME INEQUALITY 2

Poverty and Income Inequality

Introduction
In the world today, poverty and income inequality remain the two major problems that
affect people. Poverty interferes with one’s ability to cater for their basic needs and in so doing
affects the general welfare of people globally. Successive governments have declared their
resolve to eradicate poverty and solve income inequality. However, their efforts have appeared to
be fruitless especially in nations that face rampant corruption. Society is currently characterized
by disparity in wealth distribution. The cost of living has continued to increase over the years.
The implication is that the effects of poverty have worsened. While the rich continue to grow
their wealth, the poor continue to suffer. The poor lack sufficient housing, food, and water. The
poor can also not afford to take their children to good schools which creates a vicious cycle of
poverty. An analysis of the problem can yield into an action plan that can solve the current crisis.
the government can address the problem of poverty and income inequality through policies
geared towards reducing unemployment levels, reducing political instability, and ensuring
equitable access to resources.
Background
Various countries have made progress in encouraging economic growth. However,
despite the fact that economies have advanced over the years, many people still live in deep
states of poverty. Income inequality has continued to increase over the years. Many people
continue to remain unemployed and this has resulted in the lack of productive resources that can
sustain and cater for basic needs (Thompson & Dahling, 2019). Poverty is manifested in hunger

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and malnutrition. Further, poverty is also manifested in lack of both education and decent
housing. Certain people in society bear the disproportionate burden of poverty.
Culture and societal patterns are the main causes of poverty and income inequality.
Changes in the global financial system have left many people poor and lacking adequate
resources to sustain their lives. Political shifts have also meant that the effects of poverty have
been worsened. The government plays a central role in defining the political temperature in a
country. However, many governments have ignored this role and this has resulted in heated
political climates. In countries where there is no peace, the effects of poverty and income
inequality are worse. Children suffer the most since they are hit by health problems. Poverty
eradication is an ethical, political, economic and social cause. The solution lies in examining the
problem from multidisciplinary perspective and fighting towards eliminating the problem
through deliberate policy measures.
Equality amounts to fairness in most countries. People have a basic right to live in a just
society irrespective of ideology, culture, or religion. Income inequality is a reflection of
persistent disadvantage of access to resources that different sections of society have to endure.
The widening nature of income inequality also means that economic growth and macroeconomic
stability cannot be fully achieved (Thompson & Dahling, 2019). Political decisions are also
made by a few and this excludes many people in society. Globally, poverty and income
inequality have evolved in different ways in the recent past. The number of people that live
below the poverty line has significantly reduced primarily due to tremendous growth in emerging
economies. However, there are economies in which poverty is on the rise. Places such as the
United States and Europe, there is a rising number of poor people, especially children (Shehzadi
et al., 2019). As inequality across countries decreases, inequality within countries has been on

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the rise, not only in developing nations but also in developed nations. In developed countries, the
rise in poverty cases has been associated with a decline in wage shares of national income,
deindustrialization, decreased unionization, as well as financialization of the economy. On the
other hand, emerging and developing economies have high cases of poverty and income
inequality due to unbalanced growth in different cities, different resources in rural and urban
areas, with rural areas being left behind.
Income inequality matters since high levels of income inequality mean that there are
large social costs associated with this situation. The educational and occupational choices made
by individuals are significantly undermined in a country characterized by high income inequality
levels. Corruption and nepotism are some of the problems that have fueled the problem of
income inequality (Thompson & Dahling, 2019). In countries where there is a large gap between
the rich and the poor, public trust in national institutions is eroded. Social cohesion is also
adversely affected and this results in a social crisis. It is therefore important to address income
inequality and poverty and come up with lasting solutions that will stimulate economic growth.
Data on poverty and Income Inequality
There are different methods of measuring poverty and inequality in countries. Ravallion
(2014) attempts to measure the level of income inequality in developing nations. His analysis
focusses on ignoring the borders and coming up with general observations. The research states
that the total income inequality has stagnated over the years. However, the income inequality
remains significantly high. Ravillion offers valid insights into the problem of income inequality.
He states that the problem should be a major point of concern for developing nations. The paper
has no observable bias.

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Naschcold (2009) states that poverty and income inequality interact with one another. To
this end, changes in income distribution can have a change in poverty levels. The paper utilizes
the Gini coefficient and states that changes in income distribution is the best strategy that can be
used to address the poverty levels. The paper mainly focusses on Africa and this can be labelled
to be one of the biases that can be seen. On the other hand, Shehzadi et al. (2019) state that
poverty levels are the result of the structure of society. The paper is holistic and states that the
level of poverty in Europe is significantly lesser compared to the poverty levels in Africa. In
Europe, societies that have low-income inequalities are also characterized by low levels of
poverty.
Solutions
One of the solutions to poverty and income inequality is the equitable distribution of
resources. People sometimes languish in poverty because their regions are marginalized,
development is sidelined, and they do not have equal access to opportunities compared to their
counterparts in other areas. Aristotle stated that men are contented when they are equal, and this
means that when unequal, then they are not contented. People can contribute more to economic
growth and development when policies are in place to enhance equality and equity. The Gross
Domestic Product (GDP) grows when a country ensures that resources are equitably distributed
in all its regions. The positive impacts are consequently distributed to other areas such as factor
productivity, human capital, and physical capital (Sehrawat & Giri, 2018). Extreme inequality
undermines the economy, culture, democracy, and public health. When wealth is concentrated in
one region, or among the hands of a few in a country, it gives them political power to shape
elections, and come up with legislation to favor the already wealthy. The poor are sidelined and
continue to languish in poverty. Equality can be achieved through coming up with policies that

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ensure everyone has access to a source of income that is enough to meet fundamental needs.
Policies should favor individuals whose work produces real value, for instance, factory and
service workers, teachers, hospital attendants, entrepreneurs, and family farmers.
Poverty and income inequality can further be eradicated through continuously recycling
wealth. Some of the ways through which wealth can be recycled are through public spending and
progressive taxation policies. Such policies ensure that wealth is recycled from those at the top
and have far more than they need, to the ones at the bottom who do not have essentials of life.
Other policies that ensure equitable development would help ensure that regions are not left
behind in terms of development. For instance, through multi-strata development, the government
can limit geographical separation by race or social status. Further, policies on work and
ownership would help minimize the division in society, which is mostly based on class. Such
policies would encourage every individual to involve themselves in productive work and to share
in the responsibilities and benefits that come with ownership. It is essential to ensure that there is
wide access to communal wealth.
Economic growth is highest in countries that experience and foster political stability.
Political stability is one of the significant ways through which poverty can be eradicated.
Consequently, political instability leads to poverty. Therefore, one of the most effective means
through which poverty can be eliminated is by focusing on maintaining political stability.
Countries in regions that have enjoyed political stability have low poverty rates, while the vice
versa applies in areas where political instability has prevailed in the recent past.
Another way through which poverty and income inequality can be solved is through
ensuring that there is access to full employment, people engage in nation-building activities, and
they promote unity. Some of the countries such as those in East Asia have achieved

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tremendously in their poverty alleviation attempts through employment, promoting unity, and
encouraging their citizens to engage themselves in unity-building activities (López Del Amo
González et al., 2018). Therefore, concentrating on factors that enhance the social wellbeing of
the people is an effective way of ensuring that causes of poverty are well addressed and the
problem solved.
Ethical Issues
Poverty reduction is a prioritized issue because of its ethical implications. Eradicating
poverty can be based on the principle that social institutions should maximize happiness so that
maximum happiness can be achieved among the highest number in society. Also, from a
principle of fairness, eradicating poverty through redistribution or resources to foster equality is
ethical. Another ethical perspective that supports poverty reduction is from a moral principle
whereby every individual should be helped to live a decent life. Helping someone survive is a
moral obligation that everyone in society should fulfill (Barrientos et al., 2016). Also, the act of
eradicating poverty is justifiable to the extent that it benefits the worse off in society. People who
struggle to provide basic essentials for themselves deserve to be helped to survive. Besides,
helping those living in poverty is an act of recognition. Those in society recognize the needs of
others and are willing to do what is necessary to assist them. Additionally, a justification to
extend the necessary assistance may be based on the point of view that the challenges being
experienced by the poor are caused by political and economic institutions that have
systematically denied the value and contribution of these people (Barrientos et al., 2016). Great
power comes with great responsibility; hence the government of every country has a moral
responsibility to assist the citizens and ensure each is living decently. Also, since poverty leads

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to issues such as death, social violence or conflict, human trafficking, and drug trafficking, it is
ethical to ensure that it is eradicated so that human dignity is preserved.
There are ethical justifications for poverty reduction and extending social assistance to
those living in poverty in society. However, one of the negative outcomes of such efforts towards
eradicating poverty is that, to some extent, it could encourage laziness. People in poor conditions
wait for help from government agencies, non-governmental corporations, and even private
individuals. They could over-rely on such aid and fail to put in the necessary efforts on their side
to make their situation better. Although this may not necessarily be the case, there are people
who may intentionally refuse to work because they are waiting for assistance from the relevant
parties. Such a scenario could produce a culture in society of dependence, which is not only
undesirable but also likely to affect economic growth and development. Laziness is a moral
shortcoming that hinders oneself from working hard and leaving the worst versions of
themselves as they embrace better versions of themselves (Jenni, 2016). Human beings have a
moral obligation to work and provide basic essentials of life for themselves. Thus, when a person
is lazy, he or she is failing n their moral obligation to work and make life better for themselves as
well as those who depend on him or her.
Conclusion
Overall, the government has a responsibility to ensure that its citizens do not lack basic
essentials of life through coming up with policies that address issues to do with unemployment,
political instability, and ensuring equitable distribution of resources. It is evident that the global
issue of poverty and income inequality has become problematic in the recent past, and is
affecting the wellbeing of many people across the globe. Therefore, government agencies, non-
governmental organizations, and the general public have a role in enhancing equal access to

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shared wealth. The wealthy in society should ensure that they propel the recycling of wealth, and
the poor in society also get access to a source of income and are able to cater for their basic
needs. Through unpacking poverty patterns, everyone can play their role in ensuring that the
origins of poverty and sources of income inequality are dealt with, and every individual is able to
provide for their basic needs. Besides, a social safety net is critical in providing protection to
every person and shielding them from the negative effects that income inequality and poverty
have on society.

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References

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