|← Starbucks is an American International Coffeehouse Chain||How Globalization Affects Governance →|
Buy custom Economic Inequality essay
According to the World Bank estimates, over one billion people live in utter poverty, and the number of productively employed people is over 700 million in the world. Moreover, a huge number of people have a limited access to income, education, health care, infrastructural resources, and nutrition. Due to this situation, many people live in a constant fear. They are unable to change something in their lives and do not have a voice to make the situation heard. Poverty is one of the world’s significant phenomenons and it exists in every society. Even in the rich countries, like the United States, people suffer from poverty. However, there exists a hypothesis that it is possible to completely eradicate the issue of poverty with the help of harmonization of socio-economic developments. This is only possible on the condition that every citizen will be provided by a guaranteed standard of living. People should have an access to the rational consumption of all types of goods from the point of physical and mental health (Leon-Guerrero, 2011).
There are several concepts or theories that have been applied in an attempt to explain the reasons behind the economic inequality that exists in the world today. Some people argue that income inequality came about as a result of the decline of unionization, while some tie income inequality to the effects of immigration and outsourcing. Another school of thought believes that the disparities in resource allocation appeared as a result of increased demand for high-level cognitive skills. However, there also exists another thought that explains that the gap between the poor and the rich is attributed to a range of factors that result from the changing executive reward systems to the presence of poor. They focus on the policies that aim at empowering the working poor (Leon-Guerrero, 2011).
Over the years, international organizations like Red Cross and CARE International have laid an emphasis on the concept of unionization and government participation. The concept is considered to be a solution to poverty eradication, which is one of the main social problems in the world and a major cause of economic inequality. There is a need to increase the role of trade unions and government departments in providing for the workers' rights. It should be mentioned that special attention must be paid to the disabled, women, single parents with young children, workers from single-parent families, and young people. Red Cross and CARE International have pushed for the formation of effective support for the most vulnerable groups, namely the elderly, the disabled, families with a high dependency burden, and families in extreme situations. The organizations promised to provide these people with a non-discriminatory access to free or subsidized resources (Leon-Guerrero, 2011).
The majority of employers want to hire employees with high cognitive skills and qualifications. Therefore, they have put a significant pressure on the working poor, who perhaps were no able to afford the right foundational education to qualify for these jobs. Thus, Red Cross and CARE International put a lot of emphasis on education, right from the young age to adulthood. They consider it the key to the right financial independence. Namely, individuals who attend school become highly sought after due to their skills and are, therefore, generously rewarded for their input unlike those who do not have any qualification probably because of dropping out of school. In addition, creative minds who invent unique products and services are more rewarded, thus stretching a huge gap between the rich and the poor (Crone, 2011).
As a result of the wage differences, a wide gap exists between the wage earned by these individuals and the minimum wage. Red Cross and CARE International have organized the campaigns to reduce the number of low-paid workers as well as to increase the par for minimum wage in order to minimize the effects of unequal income distribution. They have also campaigned for the increase in the number of job opportunities for the jobless.
Over the years, CARE International has done a lot to empower women to become financially responsible in the society. By the year 2011, the organization was working in over 80 countries, where it sponsored about 1,051 projects aimed at fighting poverty that was a source of sufferings for 122 million people (Crone, 2011). In order to be financially healthy, people must change their situations. What is more, self-esteem and personal growth will help them reach for better lives through their own responsibilities. Red Cross, on the other hand, has emphasized financial literacy as one of the tools to fight poverty, which widens the gap between the rich and the poor. Some time ago, this organization has participated in several projects that aimed at educating individuals on personal finance at a young age. It has made significant contributions to several schools in terms of organizing talks to students by people who are experienced in financial literacy. They also organized trips for students to enhance their exposure to all the facets of society in relation to money, as well as provided materials on financial knowledge to learning institutions. It is believed that raising a financially literate society is a huge step in the right direction (Crone, 2011).
Buy custom Economic Inequality essay
- How Globalization Affects Governance
- Monetary Union
- Starbucks is an American International Coffeehouse Chain
- Impacts of Economic Globalization