Economic Inequalities: A Bitter Truth Or A Crazy Fantasy?

Economic Inequalities; a Bitter Truth or a Crazy Fantasy? The big changes happening nowadays in society have raised the economic inequality between people and therefore between small and big cities. Behind these inequalities stay factors such as technological development, investment or population growth. The value of big economic improvement is also attributed to small factories which make the economy flourish, such as Nuvotronics, which was explained in the article by the Economist. For other people, things do not seem to be the same, they even deny the existence of an economic inequality among people. John McCarthy states the economic gap is just a myth in his article based on the Grattam Institute research. In the paper you
The title itself states that the economic gap between larger cities and smaller ones is just a myth and not something real. In the article, John McCarthy analyses the increasing demand of people shifting to smaller political parties because of the disappointment from the big ones. This disappointment has its roots on the economic impact. According to this research, which is mainly concentrated in the unemployment rates and income, some rural cities might have high unemployment rates. This is a phenomenon which happens in the capital as well. The gap between the industrialized cities and rural zones is not getting wider, even though the income in the cities might be the same as in the bush (rural zones). Furthermore, the data has shown that in the rural zones the unemployment rates are slightly lower. The argument is supported by the fact that even though in the agricultural sectors many jobs have vanished, the same has happened in the manufacturing zones (McCarthy). The research, though, cannot point out one specific reason by the surveys conducted. Some of the causes are related to cultural wars, including the wrong kind of migration, too much social liberalism or widening cultural divides between metropolis and region (McCarthy). The rest of them put the blame on the institutional governance, which is increasing the gap between
The biggest contrast between the two articles definitely remains in the factors they take into consideration to explain the economic gap. The first paper emphasizes the importance of small factories and the benefits they bring in the small cities by making them flourishing economically. On the other hand, the second article states clearly that the difference in economic gaps between small and big cities does not exist which sounds more like a myth. The output per person is not the same in big and small cities. Both small and big areas have more or less the same income growth. The first article studies the case of a small factory in Durham and how factors such as investment, technology and wages (which are decisive for one’s standard of living), increase the gap between the poor and the rich. Meanwhile, McCarthy is mainly focused on unemployment and income growth, and overlooks many other factors that might influence this issue. The Economist sees investment, technology development and market power as the main reasons for reaching this gap and widening it. These reasons have a more realistic approach. For Australians, the reasons are not the same. They find the increasing number of migrants, cultural division and the social liberal ideas guilty for widening the gap. Regarding the leadership issue, they