Why is the wealth gap growing?
America’s financial disparities have widened in large part because the means by which people build wealth have become more exclusive since the Great Recession. Fewer middle-class Americans own homes. Fewer are invested in the stock market. Just 25% of it went to middle-to-upper-middle class households.
Why is the discrepancy between the rich and the poor becoming wider and wider?
The main reason for the inequality is lack of education. Many poorer people are deprived of higher education or work skills. They will not be able to get in a higher education unlike affluent people. Richer people have sufficient money to study in a great school and pursue in higher education.
How can we reduce wealth gap between rich and poor?
Six policies to reduce economic inequality
- Increase the minimum wage.
- Expand the Earned Income Tax.
- Build assets for working families.
- Invest in education.
- Make the tax code more progressive.
- End residential segregation.
How did the Industrial Revolution widen the gap between the rich and the poor?
Innovation during the Industrial Revolution meant food, clothes, and other goods could be produced faster and better, increasing productivity and enriching the world. But some were left behind. The historic economic boom in the 1700s and 1800s also meant a bigger gap between rich and poor.
Why is there a gap between developed and developing nations?
The gap is generally caused by rich countries being able to exploit the poorer countries as they have the dominant political power to be able to do so. As a result, the poorer countries suffer from lack of resources and spiral into poverty cycles which widen the development gap.
How can we reduce the development gap?
An overview of the strategies used to reduce the development gap: investment, industrial development and tourism, aid, using intermediate technology, fairtrade, debt relief, microfinance loans. An example of how the growth of tourism in an LIC or NEE helps to reduce the development gap.
Why are some countries richer than others?
Economic factors – some countries have very high levels of debt . This means that they have to pay a lot of money in interest and repayments and there is very little left over for development projects. Natural resources – some countries have an abundance of raw materials such as oil or precious minerals.
What are the consequences of the development gap?
5.2 – The consequences of the ‘development gap’
| POVERTY (lack of development) | Decreased ability to learn | Shorter life expectancy |
|---|---|---|
| Poor job prospects | Malnutrition | Out-migration |
| Decreased ability to work | Reduced family income | Decreased resistance to disease |
What are the 3 consequences of uneven development?
There are problems with UNEVEN DEVELOPMENT that directly affect people’s quality of life and standard of living. These are known as INEQUALITIES – extreme differences between poverty and wealth, as well as in peoples’ wellbeing and access to things like jobs, housing and education.
How does uneven development affect wealth?
Uneven development creates differences between countries. higher income countries (HICs) have a lot of money and so they have the power to make decisions that affect lower income countries (LICs) .
What are the main economic reasons for uneven development?
When most of a country is in poverty, people have lower life expectancy and less access to education. This weakens the economy of the country. When the economy is weak and trade is weak, it is difficult for it to become more powerful. Economic growth is exponential and takes a long time to accelerate.
What factors influence development of a country?
Factors that Influence the Economic Development of a Country
- 1) Capital Formation:
- 2) Natural Resources:
- 3) Marketable Surplus of Agriculture:
- 4) Conditions in Foreign Trade:
- 5) Economic System:
- 1) Human Resources:
- 2) Technical Know-How and General Education:
- 3) Political Freedom:
What is an example of uneven development?
Natural disasters such as droughts, hurricanes and earthquakes can hinder a country’s development. Without clean access to clean water diseases can spread, crops fail and a person’s standard of living falls. There are many other causes of uneven development such as: Corruption.
What are physical causes of uneven development?
Arid (hot and dry) conditions are an example of which physical cause of uneven development? Natural hazards. Lack of access to the sea. Infertile soils.
What is the link between trade and the development gap?
A trade surplus allows a country’s economy to grow, while a trade deficit makes a country poorer. Increasing trade and reducing their balance of trade deficit is essential for the development of a country. However, sometimes developed countries impose tariffs and quotas .
What is meant by uneven development?
Uneven development refers to the unequal distribution of people, resources, and wealth that is a fundamental characteristic of human geography. Uneven development is evident at the global, regional, national, and urban scales.
How does colonialism add to the development gap?
Colonialism hindered a LEDCs level of development. A colony helped supply food and minerals to countries like Britain and France. In many cases gold, diamonds and other valuable resources were taken back to the home countries leaving the colony with little material wealth.
What are the lasting effects of colonialism?
(2010) further expands on the direct confrontations of colonialism by stating, “[T]he impacts of colonialism were similar, regardless of the specific colonizer: disease; destruction of indigenous social, political, and economic structures; repression; exploitation; land displacement; and land degradation” (p. 37).
What were the positive effects of colonialism in Africa?
Some positives historians have pointed out are medicine, education, improved infrastructure, Christianity, and boundaries. The growth of the African population was aided by the Western medicine introduced by Europeans. Africans were introduced to formal education by Europeans.
Why does uneven development lead to migration?
Uneven development leads to people migrating. This can be voluntary migration where people search for a better life (pull factors). In addition to this as people become more aware of the development gap between LICs and NEEs and HICs people are attracted by the potential economic opportunities available to them.
What is the main cause of uneven development?
There are many factors which lead to, and have led to, the world being unevenly developed. From historical human factors such as conflict (war) and political instability, to physical factors such as climate, relief and natural hazards.
What is a bottom up development strategy?
Bottom-up. Bottom-up development schemes are projects that are planned and controlled by local communities to help their local periphery area. Because the project is on a smaller scale compared to a top-down project, the environmental damage is often much less.
What is one social consequence of uneven population growth between less and more developed countries?
One social consequence would be increased immigration which would result in increased cultural diversity and growth of ethnic neighborhoods.
What is an economic consequence of uneven population growth?
Depletion of resources and pollution: large populations need equally large amounts of natural resources (water, energy and food). This depletes natural resources, increases pollution and damages the environment.
What is a social consequence?
Social Consequences Defined. A social consequence of a market transaction, as used here, is any unforeseen effect, positive or negative, experienced by the parties to the transaction or any effect, foreseen or not, experienced by others not party to the transaction.
How does the aging population affect the economy?
An aging population and slower labor force growth affect economies in many ways—the growth of GDP slows, working-age people pay more to support the elderly, and public budgets strain under the burden of the higher total cost of health and retirement programs for old people.