Poverty and equality

Poverty and equality

Poverty and equality are an integral part of modern civilization. This is accrued to the current social structure where the wealthy are exposed to better opportunities, further widening the gap between the rich and the poor. In the United States, there is a significant disparity between the rich and the poor, pointing out the inequality problem in the region. Inequality can also be discussed from a development point of view where some regions are more developed compared to others. Although the problem of hunger and poverty is primarily associated with third world countries, these vices are also present in developed nations. Numerous strategies have been adopted in the United States to help bridge the gap and incorporate inequality in the country. This essay identifies the factor leading to inequality in the United States and policies that should be adopted to alleviate inequality.

Poverty and inequality are major determinants of economic growth in a region. This is because the two factors are related directly to where inequality is determined by analyzing expenditure and income gaps between the richest and poorest in the community (Haughton & Khandker 101). Inequality is mostly measured using the Gini coefficient measured through the Lorenz curve that helps identify poverty levels by arranging individuals from richest to poorest (Haughton & Khandker 101). The Gini coefficient ranges between zero and one, thus depicting perfect elasticity. Income inequality is associated with various causes and factors that influence the opportunities available to an individual. Income distribution is presented as a major cause of inequality in the United States. This is also shown through the differences in income levels for different individuals on the same level (Haughton & Khandker 116). However, inequality is influenced by not only the income distribution strategies but also incorporates changes in the labor market.

The relationship between poverty and equality is illustrated through the use of two-way links determining growth. Inequality influences growth and development in a region where a lack of proper and equitable distribution channels slows down the process (*1). As the author points out, asset inequality acts as a proxy guiding distribution of resources such as land, capital, and human resources. Taxation is also presented as a major factor influencing the level of inequality identified. In most developed countries, the tax system is progressive, a factor that has helped improve income distribution (*02). This is because growth is less efficient compared to sub-Saharan Africa. The relative effects of distribution also influence relativity and poverty measure indicators.

This is because poverty levels determine high figures on the same through analyzing the relative effects on inflation and adjustment on both poverty and income distribution. Inequality is therefore depicted as a driver of poverty and elastic growth in the region through the introduction of quality growth through the labor-intensive and sectoral composition (*03). Besides, the introduction of macroeconomic factors in the inflation and deflation of the exchange rates.

Inequality is further influenced by other factors, including the recession and rapid inflation. This is because recession periods in the inflation encountered further worsens the issue of inequality in the distribution of resources and income (*04). In this case, income, poverty elasticity variations facilitate equal income distribution through the integration of a mechanism that lowers inequality, thus helping reduce poverty levels in the community. There are various policies that can be applied in income distribution that help in reducing poverty and hunger. Taxation is one of the major policies that influence poverty levels as well as reducing the amount of inequality in the nation*. Government intervention is influenced by the level of wealth held by each group where ethnic and economic advantages are exploited to reduce poverty in a community*.

Redistributive taxation is a policy change that can be adopted in this case to reduce the amount of income distribution disparity observed and reduce poverty in the region. This form of taxation increases the amount of tax an individual pays, depending on the total income earned (Jayaraj & Subramanian 185). According to this form of taxation, the poor pay a small percentage in terms of tax, thus facilitating the redistribution of income and reducing the amount of inequality in society.

Although this policy assists in redistributing income by taking from the rich and giving to the poor, thus helping bridge the gap caused by inequality in income distribution and natural resources. This policy is embraced because it includes both heterogeneous and endogenous practices that determine the effectiveness of the redistributive policy in operation (Tamai 134). This policy also brings out the relationship between inequality and economic growth as analyzed after taxation in comparison to inequality levels before taxation.

Poverty and inequality, as the discussion above, elucidates, are intrinsically related where poverty reduction is facilitated through the introduction of distributional policies. Redistribution is also seen to be central to the poverty reduction agenda. However, growth and equitable distribution are influenced by policies governing society because high inequality increases poverty levels in society.