Should one be concerned about rising levels of inequality in the Research Paper

Should one be concerned about rising levels of inequality in the global economy - Research Paper Example On contrary, some inequalities are known to promote investments but excessive implication of this global economic inequality results to destructive options. The income inequality can easily obstruct long-term growth and development. It is also famous for increasing the country’s economic growth duration and has a more complicated spell than low government corruption, free trade, foreign investment and any outstanding foreign debt. In a global perspective, the focus on opportunity and income disparities comes as Europe and United States struggle with the increasing economic downfall, which widens the gap between the poor and the rich. This situation has dominated the prime reason on the Americans choice of the presidential election and spurred common European street protests. At the same instance, economic inequality is taking a profound position in developing countries such as India and China. Despite the unscathed escape of global economic recession in these developing nations, a comprehensive study points out that decrease and growth of poverty levels in these nations coincides with inequality rise leading to imperative social tension. The global inequality shrinks in the presence of emerging markets and power shifts. Many nations greatly oppose the widening gap trend hence making the issue of global economic inequality a focal point (Ferreira and Walton 67). Global economic inequality has a tendency to vary in regard to historical periods, societies, economic systems and structures. The term has a direct reference to the cross-sectional distribution of wealth and income at a particular period. There are several numerical indices for economic inequality measurement, but a commonly used one is the Gini coefficient. Many are also the reasons for the emergence of economic inequality within the society. A recent development on the overall income inequality amongst OECD countries has been commonly

Seminar in Macroeconomic Theory Assignment Example | Topics and Well Written Essays - 750 words

Seminar in Macroeconomic Theory - Assignment Example Fund raised will be used to cover the allocation the health sector that is a principal consumer of the federal budgetary provisions. Another strategy will involve the Congress amending the constitution to include a provision requiring the federal government to prepare a balanced budget. While trying to promote a more balanced budget through constitutional amendments, it is critical note that poorly crafted changes can trigger instances of economic instability. Any draft amendment should have an element of limited flexibility catering for emergency situations like a recession. As a measure, the federal government ought to encourage the establishment and registration of businesses in the USA. This will put the USA federal government in a better position to grows revenue to support its ever increasing expenditure. Homegrown companies should be encouraged to base their manufacturing firm within the states instead of operating their factories oversee. This will reduce the level of economic unemployment and the government will in turn reap in the form of more taxes. The federal government has an obligation of controlling to control its borrowing. Borrowing increases the government obligation in the form of the interest payable on these loans. The defense department and the intelligence department have been conveniently decreased measure to reduce the cost incurred in many operations conducted by these departments. The wars in Middle East and international missions are the cause of the high expenditures here; these can be reduced to manageable levels. Additionally there is a proposition that allows the government to repay the debt in an effort to reduce amounts paid periodically as interests on these loans. Observing the total amount payable towards settling the entire National Debt, it is evident that the accumulative interest is very high, and it siphons the nation’s resources and contributing to the greater budget deficit. Therefore, proposed that the