APPLIED PROJECT

Income and Inequality

Final Draft

October 29, 2021

Thesis Statement:

There is a vast difference in the services enjoyed by the rich people than the poor people. This leads to the social stratification and cause many problems. In this paper, I will review different factors behind the difference. Income inequality is a major problem for the world now. Many are living below the poverty level and other spending a lavish life. The major discrimination can be observed in the health sector as there is a clear difference in the facilities available to the rich and poor people. At the end I will discuss the ways to overcome this social problem.

Introduction:

Income inequality, often known as the wealth gap, is a microeconomic concept that has existed since the dawn of humanity. In most cases, income inequality refers to the disparity in wealth that exists between people and groups in society. While it is impossible to create a society in which everyone is equal, the distribution of economic resources among individuals influences not just their buying power but also their choices. To put it another way, overall utility is the most important factor in making utility-maximizing decisions. As a result, income inequality is of social and economic significance since it affects market buying power. I will provide an analytical perspective on economic income inequality and income distribution as a measure of a better living and better social services in this essay. Along with it, we'll talk about the causes and effects of income disparity. These findings are based on empirical research as well as a theoretical assessment of the literature on economic growth, income inequality, and distribution.

Income Inequality:

Income includes all money earned through work (wages, salaries, bonuses, and so on), investments (such as income on savings accounts and profits on stock), savings, state benefits, pensions (state, personal, and corporate), and rent. Income may be measured on an individual or household basis - that is, the earnings of all the individuals who live in the same home. Gross income refers to household income before taxes, which includes money received from the social security system. The whole income of a household, including all taxes and benefits, is referred to as net income (Tilly, 1991).

Furthermore, government efforts may aid in the rise or fall of income inequality. Every approach for reducing inequality is questioned by both social scientists and politicians. Governments stressing equality in public education through providing equal access to learning resources to all members of society are common efforts that may help close the inequality gap. As a result, the supply of skilled workers may rise, decreasing income inequality caused by disparities in educational attainment. Another option is to implement progressive taxation, in which the wealthy pay a higher inequality rate than the poor, thus narrowing the income disparity in society. Furthermore, enacting minimum wage legislation that aims to increase the income of low-paid employees would help to close the gap.

Understanding Income Inequality:

While the preceding explanation is essential in that it introduces the idea of income inequality, its economic implications raise serious concerns. It is critical that people's earnings levels define the budget limit. As a result, people's buying decisions in a market are influenced. People spend just what they earn, which they divide among the many utilities according to the significance or urgency that they need. Individuals cannot, for example, buy luxury goods at the cost of essential necessities like as rent, bills, and education. Even among the most basic goods or requirements, consumers rank them in order of importance based on their income. In such case, people would choose to live off of less expensive alternatives. For example, a family may enroll their children in public schools since the fees are less costly than private schools. This is after weighing the total and marginal utility of the two choices in order to optimize the incomes of the parents. However, this has an impact on one's schooling, resulting in a disparity in the job market.

As a result, it is believed that income inequality may have a significant influence on a country's financial instability. The fact that the gross domestic product and income inequality increase in lockstep backs up the previous assertions. Galbraith discovered that excessive income inequality reduces economic growth, an effect that lasts as long as policies stay unchanged. It's also thought that, although income inequality has distinct effects on wealthy and poor nations, the impact is greater in affluent countries than in poor ones. This may be due to a dramatic change in budget restrictions among these nations, which has coincided with a sharp drop in GDP.

There is a distinction to be made between poverty and income inequality, and the two words should not be used interchangeably. Poverty is defined as being significantly worse off than the bulk of the population. Because of their poverty, they are unable to get products and services that most people consider essential to a decent quality of life.

Inequality and Ability:

Wage inequality has been increasing in the United States and many other industrialized nations over the past several decades, both overall and within demographic, industrial, and occupational groupings. The capacity of a worker and monopolistic power influence income equality through affecting pay equality, while companies set the price as high or low as they desire. You may obtain more employment possibilities and earn more money if you have more skills and expertise. The significant relationship between an individual's abilities and earnings is the first (and most basic) reason for why politicians worried about wage inequality should concentrate on skills. Workers who can comprehend a wide variety of complicated mathematical information (scoring at levels 4 or 5 on numeracy exams) earn 60% more than individuals who lack the fundamental numeracy abilities needed for completing numerous daily activities, according to the current round of adult literacy surveys (PIAAC). Because of the high demand in their region, monopolistic companies can afford to pay their employees more. Garbage employees, for example, are paid more than teachers, despite the fact that teachers have gone to college and are teaching the future. Monopolistic dominance also allows them to set pricing and salaries, which may benefit the wealthy while harming the poor. Worse, this inequality in economic power encourages even more inequality in our political system. The same large companies and big investors that increase prices, reduce salaries, and exploit the poor are also some of America's most influential political players. They not only use their wealth to lobby lawmakers, fund academic researchers, and sway think tanks and policy experts, but they also use their market power to put pressure on elected officials, such as when Aetna threatened to leave the Affordable Care Act exchanges unless the Obama administration approved its massive merger with Humana. Demand for certain talents has an impact on how much individuals are paid.

Because individuals with greater money are more likely to have better opportunities, while the poor are less likely to obtain a higher degree, education promotes income inequality. People with a college education are more likely to earn more money than those who just have a high school diploma. Full-time employees with at least a bachelor's degree between the ages of 25 and 64 earn an average of $84,000 a year, compared to $42,000 for those with just a high school diploma (Duncan, 2021). However, where you reside has an impact on the quality of your education. Residential segregation occurs when the wealthy get a superior education while the poor have a lower budget and fewer experienced instructors. In recent decades, residential segregation by income has risen significantly, as high-income families purchase houses in areas where less-affluent families cannot afford to dwell, and impoverished families are increasingly surrounded by poor neighbours (Gould, 2005). This decreases contacts between wealthy and poor in a variety of places, including schools, child care centres, libraries, and supermarkets. Without the wealthy's financial, human, and political power, institutions in poorer neighbourhoods, such as schools, may suffer from a decrease in quality." Duncan (Duncan, 2021). The less money a school receives, the more probable it is that students will not get a good education. As a result, the rich remain on top and become even wealthier, while the impoverished stay on the bottom, widening the divide. Education promotes income inequality by widening the difference between rich and poor people's possibilities; this allows the wealthy to have more financial opportunities while the poor have to make do with the bare minimum.

Discrimination leads to income inequality since more people are jobless as a result of their race/gender and the types of employment available to them. Women are jobless as a result of the kind of job they do, which was influenced by covid since it was more of a person-to-person employment, while males are given more industrial/business positions. People are paid less because of their gender; women are more likely to earn minimum pay than males; and women in higher positions are scarce." Female-dominated professions, such as childcare and restaurant service, remain at the bottom of the American pay scale. Women account for 63 percent of employees receiving the federal minimum wage, which has been unchanged since 2009. Women, on the other hand, account for just 5% of Fortune 500 CEOs. In 2016, CEOs earned an average of $13.1 million. Because of their history, those with lower earnings are more likely to be of a different ethnicity. Coloured women earn the least, while white males get the most. Workplace discrimination affects your income since individuals are compensated differently based on their gender and race.

Workers are being displaced from low-skill professions such as skilled agriculture, craft and trade, and elementary occupations to positions that need non-routine higher skills, such as professionals and technicians, according to sectoral shifts in the occupational structure. There has also been a substantial rise in the number of service and sales employees, who are more likely to do repetitive physical and cognitive activities. Changes in occupational wages have had a favourable equalizing impact, with lower-skill professions such as skilled agricultural workers, craft and related trade workers, plant and machine operators, and elementary occupations seeing the most significant increases. The equalizing impact may also be seen at the top of the skill premium, with managers and professionals receiving similar amounts. Despite these improvements in inequality, we still see significant disparities in pay between low- and high-skill professions.

Salaries and skill levels have a significant connection - as anticipated, greater skill levels lead to higher wages and lower skill levels lead to lower wages. Many economic developers are aware of the significant link between skills and earnings. Many politicians and the general public, however, may be unaware of this. This significant connection demonstrates that employees may raise their earnings by improving their abilities. Workers need more education or training to improve their abilities. Because there is a link between skills and earnings, raising the minimum wage will have a cascading impact across the wage structure. As a consequence, median earnings for all skill levels will rise, and a raise in the minimum wage will have a minimal effect on low-paid employees' purchasing power in the long run. To raise the quality of life for low-wage employees, it would be more beneficial to provide them with education and training programs so that they may develop their skills and qualify for higher-paying jobs (Gould, 2005).

The gap between the wealthy and the poor has widened as income inequality has increased. Individual variations in education, race, and geographic distribution have contributed to this disparity. In the first case, the divide has been growing as a consequence of disparities in educational attainment. The degree of education is directly related to the level of income, implying that those with a high level of education also have a high level of income. Individuals with a greater degree of education have more skills and technical know-how to perform in their professions, implying that market earnings are influenced by the number of skills that person has. The less educated, on the other hand, are less competent, suggesting that they only get income commensurate with their abilities. When less educated employees grow weak, it becomes difficult for them to send their children to universities and higher levels of education, perpetuating a vicious cycle of poverty (Brian, 2015).

The divide between educated and less educated employees is also growing based on race, with people of various races not being offered equal opportunities in the labor market. Historically, America has attempted to eliminate discrimination, which has stifled the development that Americans anticipate based on prejudice. Individuals with the same degree of education have been treated differently when it comes to equal employment opportunities. According to a study, although having the same qualifications, black and Hispanic Americans are sometimes discriminated against by the white American supremacy. As a consequence of the lack of fairness in equal job possibilities, there has been a rise in competition between various races in America (Brian, 2015). As a result, in this instance, a person with sufficient abilities to make a living is made unemployed by a harsh system, which, in the long term, widens the gap between the wealthy and the poor.

Furthermore, technology has widened the gap between the educated and the less educated, since educated employees are less likely to be laid off or become jobless than the less educated, who are often laid off. When the company's technology advances, the majority of the low-skilled employees are laid off, resulting in permanent unemployment as robots take their place in the workplace. As a result, the highly skilled earn less, resulting in a large disparity since one of the parties has little income to spend.

Factors Behind the Income Inequality:

Traveling from the hustle and bustle of a bustling metropolis to the peace and quiet of a rural hamlet may seem like a trip through time in many developing nations. It is, in some ways. While cities have grown more integrated into the global economy, life in many rural regions has remained relatively unchanged. Spatial disparities represent discrepancies between urban and rural areas, or across provinces and regions, and they may be a major contribution to total inequality in many developing nations. Taxes and transfers help to decrease income disparity in wealthy nations, but these institutions are seldom well established in developing countries.

Inequality is exacerbated by technological advancements. There has been a significant reduction in employment as technology lowers reliance on labor, which is beneficial to a company since it leads to more profits, but also causes many individuals to lose their jobs. The effect of globalization, or the process by which the global economy has grown increasingly interconnected via a complex series of "flows," such as technology and information, commerce, and investment, is one of the most significant of these. Technology is eliminating old employment and generating new ones, just as it has in the past. As a result, high-skilled employees are becoming even more valued, while some medium and low-skilled people are losing their employment. It's also contributing to a change in the labor balance, giving owners, such as entrepreneurs, a greater proportion of income while giving employees a lower part. Changes in our communities, such as the increasing propensity for individuals to marry others from similar socioeconomic and educational backgrounds, as well as changes in the workplace, such as the growth in part-time employment and the decrease in union membership, have had an impact on inequality.

The state plays a significant role in decreasing inequality via the taxes it collects and the benefits it distributes. However, the government's role is changing, with a general tendency toward policies that disperse less wealth. Other economic measures, such as a push to decrease regulation, are likely to have contributed to the rise in inequality. So, technological progress has an impact on the workplace, discounting and revaluing talents while also generating whole new skills and occupations - think app developers and social media strategists. Many people believe that the connection between skills and technology is a significant, if not the most important, element in increasing income disparity. Jan Tinbergen, a Dutch economist, described it as a "race between technology and education." Claudia Goldin and Lawrence Katz, the authors of a book using Tinbergen's term as its title, described his reasoning thus way: "When technical advancement leapfrogs educational progress, inequality usually increases." Similarly, as gains in educational attainment accelerate, economic disparity tends to decrease." When it comes to the present status of the race between technology and education, it's often said that technology has taken the lead and that education is falling behind. As a consequence, individuals with lesser levels of education are more at risk of losing their employment to technology. People with high-level skills, on the other hand, are ideally positioned to put new technology to work and are seeing growing returns on their schooling.

Increases in global commerce, according to conventional trade theory, should expand the wage gap in rich nations while narrowing it in poor ones. In reality, it's unclear if this has occurred; if it has, the effect seems to have been minimal at best. According to some research, salary disparities have widened in both developed and developing nations (Jenkner & Hillman, n.d.).

Money seldom crossed borders for most of the twentieth century. Some money was transferred overseas to pay for imports and as remittances, although this only accounted for a tiny portion of most nations' economic activity. Similarly, companies tended to invest mostly domestically and spent relatively little on foreign direct investment (FDI) — the purchase of foreign firms or the establishment of operations in other countries. FDI accounted for less than a twentieth of economic activity in OECD nations as late as the early 1980s.

Government policy choices have a significant impact on households' spending capacity. Some of them are directly related to our disposable income, such as the taxes we pay and the transfers we get, such as unemployment benefits. Some, such as the laws that govern how markets operate, are only tangentially linked to our earnings. These, for example, may enhance market competitiveness while reducing job stability and salary negotiating leverage for employees. Inequalities appear in a variety of ways. Regions, genders, and even particular sectors of the population all have different income and social service shares. Poverty and inequality are not only the consequence of a lack of economic development. This is because, although economic development is essential to reduce poverty, it is insufficient to raise the poor out of poverty. Increased equality may lead to quicker development, but without a fair allocation of the advantages of growth, the impact on poverty reduction will be little. Furthermore, inequality is an issue of human rights since disparities may lead to exclusion and failure (Jenkner & Hillman, n.d.).

The distribution of money in an equitable manner is a laudable goal. It gives a person a feeling of life when they do this. Poverty will be minimized and there will be less suffering in society if money is distributed fairly. Regardless of whether or not people would abuse the money, it is critical to provide them with the opportunity to own a piece of the pie.

During the pandemic, markets are also likely to have had a significant influence in creating inequality, especially at the top of the income distribution chain. Due to the global economic collapse that occurred in March and April 2020, the world's major central banks relaxed monetary policy even more, pouring massive quantities of liquidity into the world's financial markets. However, although the increased liquidity has not yet resulted in an increase in the price of commodities, it has undoubtedly contributed to the continued rise in the value of financial assets. Because of this, stock markets have seen significant growth while the economies that support them have experienced significant contraction. It is probable that these monetary policy measures helped to avert bankruptcies and maintain employment since they were well-intentioned. Although they did not directly cause the rise in the value of assets owned mainly by wealthy individuals, they did play a significant role in the overall increase in the income of billionaires. Ownership of stock in companies such as Amazon or Zoom wasn't the only method to accumulate money during this time frame (H. G. FERREIRA, 2021).

Work and Economy:

Since the beginning of time, when humans exchanged one thing for another, there has always been some kind of economy in the globe. It is the process through which individuals make the most of what they have in order to fulfill their goals and requirements. The term "economy" refers to the social structures that are responsible for the management of a society's resources (goods and services). Goods are the tangible things that we discover, develop, or create in order to satisfy our own and other people's need. Goods may be used to fulfill basic requirements, such as a place to live, clothes, and food, or they can be used to satisfy pleasures, such as those that we do not need in order to survive but nevertheless want. Commodities are goods that are created with the purpose of being sold on the open market. Services, in contrast to these goods, are actions that are beneficial to the general public. Services such as food preparation and delivery, health care, education, and entertainment are examples of what is available. These services contribute to the preservation and improvement of a society by providing part of the resources necessary to do so. Everyone in a society has access to food, thanks in part to the efforts of the food manufacturing sector. Health-care and education systems provide assistance to those in need, aid in the promotion of long life, and prepare individuals to contribute to society as productive members. The economy was one of the first social institutions established by human civilization. It was for this reason that our oldest kinds of writing (such as Sumerian clay tablets) were created: to record transactions, payments, and obligations between merchants. A society's economy grows and changes in tandem with the development of the society. When compared to the economy of a big country with sophisticated technologies, the economics of a small agricultural village is very different (Little, 2014).

It demonstrates that the economies of various nations are expanding at different rates. As a result, there is proof of a continuous flow of money across the stages of product creation, distribution, and consumption. Because of this, in order for such a service to be provided, workers must be engaged in order to ease the transportation of the goods. Human labor, on the other hand, is becoming more expensive in the twenty-first century and, in certain cases, impossible to get in some nations owing to automation. As a result, the technological revolution has drawn attention, with the expectation that it would boost productivity while simultaneously lowering the cost of manufacturing (Thiele, 2019). According to a TED presentation, the majority of employees in different organizations are progressively losing their employment as a result of the automation of services in some areas of the economy. The automation of various organizations in many nations has spurred a reexamination of the relationship between labor and the economy. Since the beginning of the industrial revolution, there has been a need for technology applications that are anticipated to decrease the amount of human labor required in industries in the future while simultaneously increasing productivity. This raises concerns about the long-term prospects of employees in a variety of sectors. A challenge for the unemployed will be obtaining a means of subsistence from an economic standpoint. It is concerning that nations may be forced to provide for the basic needs of their people. In particular, some of the funds set aside for the development of government projects might be used to support the lifestyles of those who are out of work. It is possible that managers in many sectors could combine technology to improve production while keeping workers in a separate department to accommodate personal and family obligations. Additionally, employed people make investments in their home nations, which, via government taxes, generates money for the government to use for the development of infrastructure (Thiele, 2019).

Towards this end, regulations linked to market labor to people and technology application should be implemented in an equitable manner. This would guarantee that both the individual and the government grow in a balanced manner. To summarize, the government has the responsibility of giving subsidies to entrepreneurs and investors. The government will integrate technology to lower the cost of production while still providing job opportunities to its people in order to minimize the cost of industries. The presence of social drastic change as a result of technological advancement has an impact on work and technology in a variety of ways in different countries.

Rich and Poor:

Prior to 1800, almost everyone lived in a state of poverty. Royalty existed, and there were these enormous landowners, but they were a small, small minority, and the vast majority of the population lived in poverty. And everyone was deeply attached to their own lands. This represented the whole of human history. Agriculture, for example, saw significant transformations. What occurred was that the majority of people lived as hunters and gatherers prior to the invention of agriculture. After that, when agriculture was introduced, food production was delivered to the people rather than the other way around. People didn't go out searching for food because they were starving. There were certain locations where they were confident that a reliable supply of food would be provided.

However, money was linked to land, and those who owned land were in charge of a significant portion of the world's wealth. Moreover, shipping or transporting anything was a tough task, whether it was objects, ideas, or people. Because it was very difficult to transport anything, there wasn't a lot of commerce. As a result, the cost of transporting goods was very important and played a role in the formation of civilizations.

Only 3,000 European ships made the voyage to Asia throughout the 17th century. Approximately 6,000 ships set sail in the 18th century and continued to do so for the following hundred years. It was very tough to move any objects.

During this time period, from 1800 and 1820, several very significant events occurred. The Industrial Revolution and steam power are the two most significant events in history that most historians will examine in depth. Consequently, about 1820, steam power enabled the movement of commodities, and the movement of products fueled industrialization, international commerce, and economic development.

In addition, at that time, one of the great economists, Deirdre McCloskey, noted that with the advent of the Industrial Revolution and steam power, you had what she termed "the great divergence," meaning that certain areas, particularly Europe and the United States, grew extremely wealthy very quickly, whereas other areas, particularly the rest of the world struggled to keep up (Kim, 2018).

She speaks about the founding—the creation of the so-called bourgeoisie—of the United States. And the bourgeoisie were once peasants who had been near enough to monarchy to want to live in such a manner. Consequently, she considers the rise of the bourgeoisie to be an extremely significant event, since they were the forerunners of the middle class in the United States (Kim, 2018).

Now, throughout the course of two centuries, from 1820 to the present, the availability of products and services has just skyrocketed. Prior to the year 1820, individuals were born and died in the same world, thus there was no need for drastic changes. Instead, there were massive transformations. From the time of their birth until the time of their death, the world did not alter much for them. However, beginning in 1820, the globe began to change at an alarmingly rapid pace. Four out of every five people in the United States worked to provide food for their families two centuries ago. Now, one farmer provides food for 300 people (Kim, 2018).

For policymakers and social scientists alike, the issue of poverty has long been a source of worry. Having fewer basic needs like food, housing, and clothes generates a feeling of deprivation among the population. It limits them the freedom to act and make their own choices that they would have if they weren't impoverished. The state and society exploit poor people in general. They often lack political clout and influence over important decisions that affect their day-to-day lives. Because of this, they are more susceptible to economic shocks such as changes in economic growth and an unexpected increase in prices. As a result, in the event of a financial crisis or a tragic accident, the poor suffer greater losses and pay higher costs. However, when the economy is doing well, the poor tend to lose ground to the wealthy.

Poor people have a tough time surviving. The laborers, who constituted the vast bulk of the population, continued to live in huts that were nothing more than one-roomed and one-story structures. Since the Middle Ages, the design of these has remained almost unchanged. Their interiors were often filled with smoke, and they had open windows and a pot on the fire for cooking.

These homes would be minimally equipped, with maybe just a bed, a table, and a couple of stools on the floor. It is possible that some who are able to, such as skilled artisans or small farmers, may amass enough money to construct a more permanent residence (Kim, 2018).

Better Life and Services:

It means taking the needs, wishes, and aspirations of all generations into consideration when making policy, from young children to senior citizens."... This entails assessing the aspects of quality of life that are important to the individual, rather than just those that are the most easily quantifiable.

Better lives unquestionably include safe access to jobs, health care, education, shopping, and leisure activities for people from all walks of life. To achieve this, integrated land use and transportation planning must be implemented in tandem with adequate transportation policies that promote efficient and equitable provision of infrastructure and regular services. In addition, a variety of measures must be implemented to raise the level of road safety to an acceptable level. For all of these considerations, regular measures can be taken on the basis of easily understandable indicators, allowing for comparisons over time within a single city as well as across multiple cities.

Better Income, Better Life:

The new science of happiness begins with a simple realization: we are never content with our lives. In the words of Catherine Sanderson, a psychology professor at Amherst College, "we constantly believe that we'd be happy if we just had a little bit more money," but when it comes down to it, "we're definitely not." Indeed, the more money you earn, the more money you want. According to this seeming contradiction, the more you have, the less successful it is at giving you pleasure, and economists have struggled with this paradox for decades. In the words of Dan Gilbert, a psychology professor at Harvard University and author of the book Stumbling on Pleasure, "Once you've satisfied your fundamental human requirements, a lot more money doesn't produce a lot more happiness." According to some studies, increasing your income from less than $20,000 a year to more than $50,000 a year increases your chances of being happy by double. However, the reward for earning more than $90,000 is marginal. And although the wealthy are generally happier than the poor, the tremendous increase in living standards that has occurred over the last 50 years has not resulted in a general increase in happiness among Americans.

You overestimate the amount of pleasure you would get from having more money. Humans are adaptive animals, which has shown to be a benefit through many cold ages, diseases, and conflicts throughout history. However, when good fortune comes your way, you'll never be completely content for extended periods of time because of this. Despite the fact that accumulating more money makes you happier in the near term, you soon get used to your newfound riches and all it provides you (Futrelle, 2017).

Income and Health:

The higher one's wealth, the lesser one's chances of contracting illness and dying prematurely are. 1 According to studies, Americans of all economic levels are in worse health than those who have earnings that are greater than their own. Not only is higher income (the amount of money earned and other money obtained each year) linked with better health, but more wealth (net worth and assets) is also associated with better health. Despite the fact that it is simple to envision how health is linked to money for the very poor or the very wealthy, the connection between income and health is a gradient: they are related step-by-step at every level of the social and economic hierarchy. Compared to those who live in or near poverty, middle-class Americans have better health, but they are less healthy than those who live in or near the upper class. Even the wealthiest of Americans are in worse health than those with greater incomes in our country. The significant health inequalities that many minorities suffer are mostly driven by differences in socioeconomic status. Even while blacks and Hispanics had greater rates of illness than non-Hispanic whites, these differences are "dwarfed by the inequalities found between high- and low-income individuals within each racial/ ethnic group," according to the study. That is, higher-income blacks, Hispanics, and Native Americans have better health than members of their respective groups with lower incomes, and the wealth gradient seems to be more strongly associated with health than race or ethnicity in these populations.

The amount and distribution of income, as well as poverty, are widely recognized as contributing factors to health disparities among populations. It has a direct impact on health since the products and services that individuals purchase have the potential to either support or harm their health. It also has an effect on a broad range of variables that have an indirect impact on health, such as social position and the ability to exert control over unforeseeable occurrences.

However, this does not always imply that cultures with the highest incomes have the best health outcomes as a result of this. Across high-income nations, mortality has decreased over the past 150 years, which has corresponded with a sustained era of long-term economic development. While economic development has been associated with better health, the evidence for this association is really very poor. According to recent research, socio-economic disparities are one of the most significant variables in predicting general health and the degree of health inequalities in high-income nations such as Scotland. In other words, decreasing economic disparity across a population is an essential component of any plan to decrease health disparities in the United States.

When it comes to old age, access to financial facilities such as banks and pensions is often restricted owing to the fact that the individual is older. Consequently, the elderly individuals become reliant on their family in order to get money. Other elderly people who are physically competent tend to labour for a long period of time in order to have adequate money when they retire. To maintain the stability of the country's economic climate, most governments with high-income workers, such as those in the United States, prevent early retirements from lowering the cost of pensions among older people. An rise in the senior population, according to a study by the World Health Organization, would have an impact on the healthcare system in the United States, raising the cost of health-care services. Between 2015 and 2030, the number of individuals over the age of 60 is projected to rise from 901 million to 1.4 billion, resulting in an increase in chronic diseases such as cancer, obesity, and diabetes. These illnesses will provide a significant challenge to the healthcare system, and as a result, they will have an impact on the economic health of the United States. Seniors are at a higher risk of sickness, and for some, accessing good healthcare services becomes a struggle owing to financial difficulties connected with insurance to assist treat or manage a condition like dementia, for example (Yamanda et al, 2015).

Because of the income disparity between high-income earners and low-income earners, income inequality has increased decade after decade, as has the socioeconomic demographics of the United States (Bor et al, 2017). Because of the high expense of the healthcare system, low-income earners do not get or are unable to afford excellent treatment like rich people, and as a result, they stay uninsured. (Dickman and colleagues, 2017). Insurance premiums have continued to widen the gap between the rich and the poor, as evidenced by the fact that a low-income earning individual's primary care costs an arm and a leg because of the pay check to pay check basis, and if this individual has a family, it becomes a burden, leading to this individual skipping required check-ups unless it is an emergency or when critically ill. Another discrepancy in healthcare is the difficulty in gaining access to the finest hospitals, particularly for those with lower incomes. This is due to the fact that the best hospitals are located in low-income regions such as rural areas and slums.

As previously said, high healthcare expenses are associated with a high death rate, and many individuals lose loved ones as a result of a lack of money for an adequate healthcare plan. The world should look into this and work to close the inequality gap by reducing insurance premiums into more reasonable instalments and expanding access to high-quality health-care facilities in rural and impoverished areas alike, so that everyone may benefit.

How to overcome income inequality:

Raising the number of possibilities for high-level education will aid in decreasing income inequality by guaranteeing that everyone receives a standard equivalent salary. Individuals with the same degree of knowledge are more likely to be paid the same amount of money as those with lower levels of competence. Also anticipated of them is that they will be engaged at a comparable level of productivity in the businesses for which they work, minimizing the chance that one person would earn more than the other. Education allows for the equalization of salaries and incomes since various professions are paid nearly in the same way, thus decreasing wage and income disparities.

Increases in educational attainment will aid in the reduction of inequality since more graduates will be available on the market, thus lowering the high demand for highly trained employees in the future. When demand for skilled employees falls, the salaries of skilled workers also decrease over time as more people join the market. In the long run, qualified workers will earn the same amount of money, eliminating the wage gap. The decrease in income inequality would be as a consequence of expanding the lower group of people who were less educated by giving them with the abilities that would balance the current few highly trained employees who earn highly competitive salaries (Abdullah, Doucouliagos & Manning, 2015).

It will be possible to decrease income disparity by providing equitable opportunities in access to education and job training. This entails making investments in people, which will aid in the increase of individual wealth as well as the improvement of labour processes. It would be possible for the government to guarantee that everyone has a standard level of education status by ensuring that there is equality in educational opportunities for everyone (Goldrick-Rab, Kelchen, Harris & Benson, 2016).

This will result in the achievement of a universal minimum income for everyone, thus lowering the degree of disparities. Reversing globalization by limiting international commerce in order to preserve local markets, as well as by restricting the immigration of prospective workers into the country, are two of the most important goals. The government will be able to decrease the number of low-wage employees who come to the United States in search of better employment prospects as a result of this. The moment these immigrants arrive in the United States, they begin looking for work in a variety of fields, lowering pay rates as they take any duty offers made by company owners, thus displacing domestic workers. By correcting the policies that need to be addressed, substantial political reform on political concerns, as well as improvements, may be achieved, thus providing a solution to the difficulties. Regardless of their political motivations, leaders will be able to enhance the social welfare and well-being of their people in this manner. Consequently, the poor will have more access to government incentives, which will help to reduce inequality in the long term since their children will have more chances to acquire better employment prospects as a result of this.

In addition, raising the minimum salaries of employees may assist to reduce economic disparity by increasing the number of people who can benefit from the increased minimum wages. The ability to save a portion of one's disposable income for future use or for the benefit of one's loved ones is made possible by increased earnings. A person with a significant amount of money has the ability to lift oneself out of poverty by narrowing the difference between their income and that of their peers. Individuals who see a rise in income are more likely to spend more and acquire a large amount of wealth, which has additional advantages such as higher living standards.

How The United Arab Emirates (UAE) has no income inequality issues:

The United Arab Emirates is one of the world's wealthiest nations, ranking in the top 10. Homelessness and poverty are not common occurrences in Abu Dhabi, the most cosmopolitan city in the United Arab Emirates. The United Arab Emirates offers high-quality education as well as many employment possibilities in the country's knowledge-driven economy. It makes many attempts to preserve the standard of high-quality education and to provide a level playing field in the employment market. It guarantees that citizens and residents of the UAE are able to make a fair living and live a fulfilling life in the country.

The United Arab Emirates devotes a significant portion of its budget to the development of the education sector. Approximately 14.8 percent of the government budget was allocated to public, university, and higher education programs in the year 2020, amounting to AED 10.41 billion in total. Educate 2020 is a five-year strategy created by the Ministry of Education (MoE) that aims to convert the existing education system and teaching techniques into a world-class education system.

A number of laws have been passed by the government that make education mandatory. Emirati children are required to begin school at the age of six and to stay in school until they have completed Grade 12 or have reached the age of eighteen, whichever comes first. In addition, the Cabinet gave instructions to develop an integrated National Literacy Strategy and a framework for producing a reading generation, as well as to promote the United Arab Emirates as the capital of cultural and intellectual material. On the employment front, the MoHRE works to expand job possibilities while also ensuring a level playing field in the labor market for all employees and job seekers.

Across the United Arab Emirates, Emiratisation is being adopted in virtually all industries. Every business with more than 100 workers is required to hire (and keep on the payroll) the required number of UAE citizens in order to maintain a minimum proportion of Emiratis in the workforce, as specified by the UAE government.

MoHRE established a plan to guarantee that employees have the legal right to collect their pay. The ministry also devised methods to increase workers' flexibility and freedom of movement between various employment, and to provide workers with adequate housing and a safe working environment.

The government also took steps to safeguard employees against unlawful recruiters, mistreatment, and non-payment of salaries, among other things. Many of these efforts are being carried out in collaboration with the governments of nations that provide labour to the United States. The United Arab Emirates recognized that many of the issues affecting the labour force can only be properly addressed in the nation where the workers were born.

In addition to striving to improve the protection of the rights of its immigrant labour force, the United Arab Emirates (UAE) continues to engage actively in the worldwide fight to eliminate human trafficking and slavery. In this area, a significant amount of work is carried out in cooperation with the United Nations and its specialized agencies (1. No poverty - The Official Portal of the UAE Government, n.d.).

Many different types of social assistance are provided by the Ministry of Community Development to Emiratis who are unable to provide for themselves and their family members with an adequate income to live a decent life.

Other organizations that provide assistance in a variety of ways include:

• The Zakat Fund, which distributes the zakat among the needy.

• Marriage Fund, which organizes mass weddings and provides financial assistance to worthy Emiratis who are getting married;

Sheikh Zayed Homes Programme, which provides housing or a piece of land to eligible Emiratis; you may apply for housing assistance online via this website.

• The Ministry of Presidential Affairs, which provides a variety of benefits to eligible Emiratis; you may apply online for social assistance, land and housing, and other benefits via their website.

At the international level, the United Arab Emirates is a major donor to a wide range of international humanitarian efforts, particularly those aimed at giving assistance to victims of natural disasters and socio-political strife. Between 2011 and 2014, the United Arab Emirates contributed AED 8.9 billion to help eliminate poverty throughout the globe. It has also retained its position as one of the top ten biggest donor countries in terms of Official Development Assistance (ODA) for the year 2015. AED15.23 billion was spent on development aid by the United Arab Emirates in 2016 (1. No poverty - The Official Portal of the UAE Government, n.d.).

The influx of visitors from across the globe implies more consumers for companies, which will, in turn, push them to have more hands-on deck, particularly in the service sectors, according to human resource organizations.

Expo 2020 will have an impact on Dubai's economy, and experts predict a significant increase in job opportunities in the region, particularly in the areas of travel and tourism, real estate, retail, events and exhibition, technology and software consultancy, marketing and media, engineering, security, logistics, health and safety, procurement and finance, and, most importantly, hospitality. Expo 2020 will take place in Dubai from October to December 2020. Due to the fact that Dubai is currently a major commercial centre for leading sectors, like real estate, hotels, and technology, the city's appeal is expected to increase even more with the addition of Expo 2020 in the immediate area (D’Mello, 2021).

Businesses were struck particularly hard by Covid-triggered lockdowns and border closures in the year 2020, making it one of the worst years on record. Many businesses were compelled to lay off employees and downsize in order to survive. Many hard-hit sectors, including tourism, hospitality, and aviation, are rebounding as Dubai progressively reopens as a result of the mass vaccination campaign.

As the United Arab Emirates enters its 50 years of unity, it is entering a new phase in its history, a new era in its development process, and a new cycle of economic, political and social growth. Ten principles were directed by his Highness Sheikh Khalifa bin Zayed Al Nahyan, President of the State, may God protect him, and what was approved by His Highness Sheikh Mohammed bin Rashid Al Maktoum, Vice President and Prime Minister of the State and Ruler of Dubai, and His Highness Sheikh Mohammed bin Zayed Al Nahyan, Crown Prince of Abu Dhabi and Deputy, the Supreme Commander of the Armed Forces, These 10 principles stipulates for the UAE that all government, legislative, police, scientific, security and other agencies in the country must abide by, be guided by them in all their decisions, and work to implement them through their plans and strategies. The ten strategies are as follows (excerpted from Al Arabiya English News):

• The First Principle: The key national focus should be strengthening the Union, its institutions, legislature, capabilities and finances.

• The Second Principle : The UAE will strive over the upcoming period to build the best and most dynamic economy in the world.

• The Third Principle : The UAE’s foreign policy is a tool that aims to serve our higher national goals, the most important of which is the country’s’ economic interests. The goal of our political approach is to serve the economy. And the goal of the economy is to provide a better life for the people of the Union.

• The Fourth Principle : The main future driver for growth is human capital. Developing the educational system, recruiting talent, retaining specialists and continuously building skills will be key to ensuring the UAE remains the most competitive national economy.

• The Fifth Principle: Good neighborliness is the basis of stability. The geographical, social and cultural position of the country in its region is the first line of defense for its security, safety and its future development. Developing stable and positive political, economic and social relations with its neighbors is one of the most important priorities of the country’s foreign policy.

• The Sixth Principle: Consolidating the reputation of the Emirates globally is a national mission for all institutions. The UAE is a destination for business, tourism, industry, investment and cultural excellence.

• The Seventh Principle: The digital, technical and scientific excellence of the UAE will define its development and economic frontiers.

• The Eighth Principle : The core value system in the UAE shall remain based on openness and tolerance, the preservation of rights, the rule of justice and the law. We believe in the preservation of human dignity, the respect for cultural diversity, the strengthening of human fraternity, together with enduring respect for our national identity.

• The Ninth Principle : The UAE’s foreign humanitarian aid is an essential part of its vision and moral duty towards less fortunate peoples. Our foreign humanitarian aid is not tied to religion, race, color or culture. Political disagreement with any country should not justify failing to provide relief to that country in cases of disasters, emergencies and crises.

• The Tenth Principle: Calling for peace, harmony, negotiations and dialogue to resolve all disputes is the basis of the UAE’s foreign policy. Striving with regional partners and global friends to establish regional and global peace and stability is a fundamental driver of our foreign policy.

Conclusion:

To conclude, the research assessed global income inequality by identifying the variables that have contributed to a widening gap between the wealthy and the poor. The topic of debate is services, and the degree of economic inequality has resulted in a growing gap between the services given to the wealthy and the poor. According to the research, income inequality may be decreased via corrective actions such as providing a standard equivalent level of education, employment possibilities, and government assistance, which will result in a smaller gap in the services sector.

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