An inevitable consequence of economic growth is increasing inequality. Do you agree or disagree with the assertion? In the world we live in today, it is quite obvious to see that inequality is a growing consequence of economic growth. In this essay I will discuss how inequality affects states and the individuals living in the state. There are increased demands for educated workers; dependence of technology; privatization of markets; and the rise of capitalism which have led people to have drastic socioeconomic differences in wealth and lifestyle.
Inequality in the economic sense is the difference in distribution of wealth and income between the people of a population, or even the difference in wealth between states. Though it is an outcome of economic growth, the rise of inequality seems to support “the rich getting richer, and the poor getting children” (Birdsall, 76)
Unlike the world Karl Marx hoped to see, communism is not a system of government that is too popular in the modern world. Democracy on the other hand, is a system of government that is being widely adopted around the world as it allows more freedom and opportunity within the state, and the accepts and promotes capitalism. Although capitalism has its virtues, it brings upon great economic inequality among the laborers working in its privatized markets, and the capitalists who own them (Birdsall, 77).
A common example of this is in China where corporations, such as Mattel from the United States own or outsource production to factories in China to manufacture items such as toys. To minimize costs, the US corporation employs poor Chinese peasants to put together Barbie dolls for export and sale in the United States (Tempest, 1). Although such a large company like Mattel is a great partner to have in business, and it’s contracts do help the Chinese economy, it is no where near the benefit the United States receives. When the Barbie doll is brought back to the United States for sale,...
Please join StudyMode to read the full document