Why is the world poverty growing and the gap between the rich and the poor widens day by day?

Answer 1

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Extracted from one of my essays last year:


Evidence
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The evidence for increasing polarisation is heavily quantitative and depicts those trends of the economic world. Income, and more specifically GDP (Gross Domestic Product), is the most frequently used measurement tool owing to its reflection of economic growth and (in per capita terms) reflection of average consumer income.

From Wade (2001), it would seem that even when using different measurement approaches, the situation of income inequality, (which I take to be synonymous with polarisation in this topic’s context) since 1975, has worsened. Using purchasing power parity and market exchange rates in conjunction with countries being treated equally and countries weighed by population, it is indicated in all 4 combinations that income distribution has polarised (although the degree for each of the combinations does differ).

The gap between the poorest fifth of the world's population and the richest fifth has increased from 30 to 1 in 1960, to 61 to 1 in 1991, and to 78 to 1 in 1994 , substantial to say the very least.

While the share of the poorest one-fifth in terms of global income now stands at 1.1%, down from 1.4% in 1991 and 2.3% in 1960 , again a dramatic blow to the poor through the decades.

Very recent evidence can be found to show that increasing polarisation can be observed not just internationally but also intranationally.

A report issued by the Center on Budget and Policy Priorities together with the Economic Policy Institute, two U.S. based think tanks, noted that the incomes of the poorest 20 percent of families nationally grew by an average of $2,660 (19 percent) over the past 20 years, while the incomes of the richest fifth of families grew by $45,100, (roughly 59 percent) .

This indicates that while we must think of polarisation holistically and on a global scale, there is also much that must be done at home to create more evenly distributed pecuniary assets.





Explanation
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The explanation for polarisation revolves around the Theories of Divergence, and the belief that the economic development of the world’s richest countries stems from the underdevelopment of its poorer countries.

It has been argued in Lummis, cited in Rau 1991: 46-47 (emphasis in original), that the global capitalist economy we hold dear produces inequality and uneven development dynamically, resulting in the observed polarisation, “A big part of the ‘economic development’, i.e. the wealth, of the rich countries is wealth imported from the poor countries. The world economics system generates inequality and it runs on inequality”.

Trudi Renwick, an economist with the Fiscal Policy Institute based in New York, stated that the decline of secondary-sector employment, expansion of low-wage tertiary-sector employment, immigration, globalization, and the weakening of unions, have hindered the economic progress of those on the lower end of the economic ladder .



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I hope this has lent a hand in your efforts and is worthy of being the best answer that you're offered

,regards



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Answer 2

The gap between rich and poor is increasing because the rich wants to be as far away as he can from the poor.

Answer 3

because the rich are, by that means, the powerful, and that's how they want it.

Answer 4

Is it?