Wealth Gap

Topics: Economic inequality, Distribution of wealth, Poverty Pages: 6 (2424 words) Published: May 21, 2013
Wealth Gap
There are the rich and poor in every period in human history and everywhere in the world. Has the disparity between the rich and poor existed since ancient time? How does the disparity between the rich and poor come out? Has the disparity between the rich and poor became more narrow or wider? Although some people think that the gap between the rich and poor is more narrow because of the development of human society, the fact is that the disparity between the rich and poor is gaining because of the change of the structure of workforce, Matthew Effect in economy, unscientific social welfare system, unreasonable tax policy and knowledge explosion. Many people think that the rich-poor gap is more narrow today because of the development of human society. In their opinions, human civilization made great processes with the pass of time. People have paid more attention on equality and human rights and have taken measures such as establishing income tax policy and social welfare which are protected by law to create a fair society. But the fact is not as same as their wishes. As Roger Bootle, a chief economic adviser to professional services firm Deloitte and Touche, says that the gap between the richest and poorest could become worse (Roger Bootle). The first reason for the increasing disparity between the rich and poor is the change of the structure of workforce. As people can see, today is a technological time. The knowledgeable or skilled people can find high paying jobs, on the contrary, the uneducated people have to do simple job and get low pay. In fact, this fact is only an apparent phenomenon caused by the change of the structure of workforce. Today, technology improves the efficiency of production a lot. Many jobs which used to be very simple and need many workers become more complicated and need only a few workers now because the content of technology in the jobs has increased. So these jobs require staffs to have much more knowledge than before so that they can equal to these jobs. The process of simple jobs becoming complicated jobs is called the change of structure of workforce. In other words, the number of complicated jobs has increased and the number of simple jobs has been reduced because of the improvement of technology. In The Reason The Rich-Poor Gap is Widening, Ross Gittins reports a fact that the number of people in professional occupations grew by 27 percent, the number of associate professionals grew by 26 percent and he number of managers grew by 12 percent in Australia (Ross Gittins). The phenomenon that the number of complicated jobs has increased is really existent and it is also happened in other countries too. Because the competition of simple jobs is keen, many uneducated people are unemployed. The uneducated people get a little pay or even no pay and become the poor naturally. Take the case of China, Dexter Roberts points out a fact that the closures of many Chinese manufacturer are mainly hitting lower-value, labor-intensive exporters that pollute heavily and use energy inefficiently(78). It means the number of simple jobs for uneducated people is reduced in China. So many worker in these factories will lose their jobs and it will become more and more difficult for them to find new simple jobs. Many rural migrant workers have lost their jobs and go back to their hometown in China. So the change of structure of workforce result in many uneducated people lose the chance to get pay and widen the rich-poor gap at the same time. The Matthew Effect in economy is increasing the degree of the disparity between the poor and rich while the change of the structure of workforce is increasing the number of the poor. The term Matthew Effect comes from a story of parable. As Marie Rippel says in The Matthew Effect and Teaching Reading, the idea behind the parable become a maxim which is the rich get richer and the poor get poorer. (Marie Rippel). Specifically, Matthew Effect in...
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