Social position reflects personal talents and abilities in a competitive economy. Unequal rewards boost economic production by encouraging people to work harder and try new ideas. Linking greater rewards to more important work is widely accepted. The social-conflict approach also looks the problem from a macro level of analysis. Stratification is a division of a society’s resources that benefits some people and harms others.
Due to this, the investment made can create principles losses during downturns and in the cycle of the business. It would definitely create a lot of panic in the people, regarding their own pensions, during the time of recession. Therefore, it would be more appropriate for the government to adopt “pay as you go” system, which really means that its premiums are invested in the treasuries of the US or any other country. As the federal government can increase the amount tax collected, can take loan, or can even print money (if required), the “pay as you go” system is the best and appropriate alternative. By adopting this method of funding its premiums, the government can make sure, that all the policies generated by them are being fulfilled.
Since Shorris realizes that the rich have this unfair advantage over the poor, he decides to create a course designed for those that could not learn these humanities in private schools and expensive universities like the rich could. He hopes that in teaching the poor these concepts, the poor will prove his beliefs about the
The author of the article titled Arguments for Raising Minimum wage, Sue-Lynn Cathy, addresses poverty and how to fight it. Sue suggests that a minimum wage increase would help individuals that are considered a part of the “near poor” category move out of poverty entirely and to keep it that way permanently. I agree with Sue’s stance on this argument, I think that it would help people who are in poverty, and really would not only be beneficial to us as individuals, but as a nation as well. Supply-side politicians generally argue that a minimum wage is bad for the economy because of the fact that it artificially pushes up income levels, and that in time it is bad for business and will lead to inflation, and also inefficient capital markets. Joyce Hanson, author of Four Arguments for Raising the National Minimum Wage, gives four reasons as to why our national minimum wage should be raised such as the following: 1.
One of my main takeaways from this topic is that money isn’t the best motivator. According to Mayo’s Hawthorne effect, employees feel more motivated when their efforts are recognized, and this can be achieved through bonuses for example. However, this can increase individualism as employees will focus on outperforming their peers. Intrinsic motivation helps create loyal employees who are more satisfied on a personal level. An example of this could be social security benefits.
Wilkinson and Pickett explore two of the most common assumptions about the social gradient that shows people at the bottom of social hierarchies suffer more problems- circumstances and individual tendencies. The authors, in critiquing the material explanation to societal problems, argue that richer nations should do better than poorer ones. This is a flawed argument, as national wealth does not indicate its distribution. A generally wealthy nation may have poorer diets, less educational opportunities, or worse housing in comparison to a less wealthy nation. Wilkinson and Pickett also give reason as to why everyone in a society should be concerned about inequality, not merely those vulnerable to the problems with which it coincides.
In Inequality for All, Robert Reich’s central claim is that the middle class of America has rapidly declined, and that this middle class is crucial to a stable economy because it generates the real job creators. He describes how a large middle class launches the economy into a “virtuous cycle,” defining it in steps: productivity increases, wages go up, workers buy more, companies hire more, tax revenues increase, government invests more, workers are better educated, and so on. When this middle class diminishes in presence, the cycle goes in reverse. Wages stagnates, workers buy less, companies downsize, tax revenues decrease, government cuts programs, workers are less educated, and finally, unemployment rises. Reich believes that not only is the widening inequality gap—the absence of the middle class, that is––a threat to the economy, it is what is undermining the very core of American democracy.
Wealth and Poverty, written by George Gilder, is a depiction on how to increase wealth and curtail poverty. Gilder argues thoroughly throughout the book that society has been misled by popular economic theory and by general culture attitudes into only having a small percentage of wealthy people and having the majority of people in society living in poverty. He documents the ways in which the blighting of incentive has crippled productivity in society and shows how the essence of capitalism is not greed but giving by investing money and energy. Gilder states that the “golden rule” of economics is the idea that the good fortune of others is also finally ones own. The scientific basis of the golden rule is in the mutuality of gains from trade, in the demand, generated by the engines of supply, in the expanded opportunity created by growth, in the usual and still growing economic futility of war (Gilder, 9).
However, with this prospect comes the possibility that the former country may have its own interests in the matter. That is, other than solving the overdue structural problems of the latter country. Though at times described as extreme, Pritchett’s own solution to unequal global economies is to develop “a giant guest-worker program that would put millions of the world’s poorest people to work in the richest economies.” Essentially, Pritchett proposes that if we as the United States really want to help low-income countries, the
Globalization is also the cause of inequality in the worlds economy, considering the fact that globalization has benefited the rich much more than the poor. While poverty rates have fallen as a result of our world becoming globalized, the workers are still getting an incredibly low income, which might cause social instability and conflict. Globalization has had a positive impact. One of the main advantages is that based on per capita GDP