Economic Inequality Essay

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RESEARCH PAPER OF ECONOMIC INEQUALITY Authored by : Nguyen Hoang Son Class: K52BFC Submitted to: Ms. Le Thi Minh Tam (research writing teacher) Foreign Trade University, HCMC campus University of Bedfordshire, UK RESEARCH PAPER OF ECONOMIC INEQUALITY As we have known, the world’s economy is developing quickly. The standard of living is higher than the old days. But there comes a problem which is hard to find the solutions for: it’s “Economic inequality”. What is economic inequality? Why it happens? What are the solutions for that? This is research paper investigates the economic inequality that every country in the world meets. Is economic inequality is good or bad for the general economy? By using information from newspapers and data, I will give the definition, analyze it to find out the reason and it’s affect to the economy and suggest solutions for it. How is economic inequality defined? According to equalitytrust.org.uk – a newspaper about economy and politic, there are three main types of economic inequality: 1. Income inequality Income inequality is the extent to which income is distributed unevenly in a group of people. Income Income is not just the money received through pay, but all the money received from employment (wages, salaries, bonuses etc.), investments, such as interest on saving s accounts and dividends from shares of stock, savings, state benefits, pensions (state, personal, company) and rent. Measurement of income can be on an individual or household basis – the incomes of all the people sharing a particular household. Household income before tax that includes money received from the social security system is known as gross income. Household income including all taxes and benefits is known as net income1. 2. Pay inequality A person’s pay is different to their income. Pay refers to payment from employment
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