Why do you think growing inequality is detrimental to long-term economic growth?

Rise in inequality that began in 1980

Since 1970, after several decades of stability in the people lifestyles and economic system after 1980, the inequality in the income of the inhabitants begins to start. After the implementation of taxes and the other payment transfer fees, the inequality of income in the US become highest as compared with the other countries.  After 1980 the overall trade and GPA of the country increase because of the inequality in the income all around the world increase. Now because of the good economic growth, the inequality in the US is relatively low as compared with the other countries= where the economy is not growing because of low GDB or the inflations.

Consequences of Income Inequality

Because of the inequality in the income, the overall economic and social system of the country lost its symmetry. For the development of any country, it is very important for it to have an almost equal income of the people. Many of the issues related to health, educations and the crimes in the society are also increase because of the inequality of income in the society.

Globalization and world trade fuel inequality

 The globalization is also said to be a major factor that boosts inequality among the people. Over the last 200 years, the economy of the world has become more unequal because of the trading of a rich country with poor countries. After 1980 the trade to GDB ratio also increases for the countries in case of globalization. The globalization is occurring in the world that making the rich people more rich and poor people poorer that also increase the inequality in the world economically, politely and also socially (Theguardian.com, 2018).

As the tradeoff ratio raise because of the globalization all around the world it is also a major indicator of increasing inequality in the world. I think, it is true that after the 1980 the trade of ratios are increasing rapidly that is also causing the inequality. The current economic system is good for the people with procession but the poor have to suffer.

 As many of the economist also argue that the raise in the inequity after 1980 also hold many of the political aspects involve in it. Many of the countries are just focus on the trade without paying attention on the GDB and tradeoff ratios that is also likely to increase the overall inequality ratios all around the world. I think, distributing the income among the individuals without the trading being involve in it is an effec5tive way to reduce the overall inequality ratios from the world. These kinds of practices are also good for the economies and countries in the longer run because it helps to reduce the ratios of inequality from the state (Theguardian.com, 2018).

References of think growing inequality is detrimental to long-term economic growth

Theguardian.com. (2018, January 2). Do globalization and world trade fuel inequality? Retrieved from

https://www.theguardian.com/business/2018/jan/02/do-globalisation-and-world-trade-fuel-inequality