Striving for Income Equality
Based on reports by the OECD, income gap (or income inequality/wealth gap) is widening among countries across the world. Statistics indicate that the income difference between the top 20% against the bottom 20% of the income holders ranges from five to ten times. However, by analyzing different countries, it may reveal a different picture.
The US Congressional Budget Office released a study in 2011 indicating that growth in real after-tax income from the period 1979 to 2007 is the highest for the op 1% of the income group. Its 275% growth far exceeds the 18% growth for the bottom 20% income group. A talk by renowned sociologist, Richard Wilkinson, proposes that by increasing social equality, social conditions can be made easier for both the rich and poor.
Wilkinson's study also indicate that better wealth equality has a positive correlation with better social conditions such as lower crime rate, better mental health, better trust among people, higher life expectancy, etc. These will indirectly have positive impact on the general social conditions. Consequently, these will offset or balance the negative social circumstances and result in a better society, country and ultimately, the world as a whole.
What can the average person do about income inequality? Numerous factors entail the slogging growth in income for the average masses. Lack of understanding of finances and financial markets, lack of opportunities to engage in organizations that form the core of talent and growth, lack of education, lack of beneficial government policies that support and encourage wealth equality. Employing the ancient Chinese wisdom of yin and yang, what the average person can do is twofold: first, by educating oneself regarding the simple mechanics of finances and bettering oneself in whatever profession one is engaged in, this improves both social conditions as a whole and provides a better life for one's family; two, one could take a positive interest in politics concerning the area of legislature, labor, taxation and government spending, to wage influence to encourage politicians to take actions that can benefit the masses.
(WPN Reporter)
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