The Increasing Gap Between the Wealthy - MyAssignmenthelp.com

Question: Discuss about theIncreasing Gap Between the Wealthy and the Poor. Answer: Introduction: Rich is becoming richer and Poor are becoming poorer. The issue of integrating gap between the wealthy and poor has always been an issue of serious concern. This gap is because of the income inequality, the variance between the incomes of people in Australia is immense which in turn leads to enhanced gap between the rich and poor strata of the nation. A research has proved that the twenty percent of the total population of the nation receives half of the total population of the Australian continent, whereas on the other hand, the poor population has received just four percent of the national income(Schipp., 2016). Mark McCrindle, social demographer, through his analysis of Australian Bureau and statistics wealth and income data has stated that Australia is on the verge of losing its image as the continent or land of the middle class. If one goes through the statistics available the wealth of the top people in Australia has integrated by 28 percent from 2004 to 2012. On the other hand the poor strata have just grown by 3 percent. Better job opportunities were created in order to counter the inequality, but the inappropriate and unequal wages contributed to increase the gap. Australia has embraced the path of sustainable economic growth for the last twenty years. Income helps up to plan the consumption and living standard of a household(Judith., 2015). There had existed an appropriate time in the history of the Australian continent when the economic life, houses and every other asset were affordable. There was a time when loans could be easily waived off on an individuals salary. In comparison to the past, the income of approximately quarter of families has declined. According to a survey, 46 percent of the population has income above $ 100,000, whereas, 17 percent of the families have an income under $ 40,000 which has decreased according to the statistics from the past. The Australian household lifestyle has depicted enhancement in the style of living by 1.9 percent, but is predicted to grow by just 0.2 percent in the coming years and huge income drops are expected to take place in Australia. The OECD reports state that half of the creation of jobs in the country is that of non-standard work ever since the mid-1990s. Beneficial factors and the effective tax regimes have come to a decline, according to the past records of the coun try(Anna., 2017). This widening gap between the two sections of the country will affect the growth of the nation. This gap has led to varying significant of people in the society. The poor people find it difficult to match up the level and living standards of the rich strata which in turn degrades their opportunity for a clear level of prosperity in the society. Due to this gap new habits and rituals are coming up which is ultimately increasing the gap between the rich and poor people. The OECD report states that the wider gap in the education system of the country has led to weaker work force. These are some of the problems that are being faced, but they can be easily tackled if all the citizens are provided with a fair opportunity for education and healthcare. It is essential for the growth, betterment and prosperity of a nation fill up such gaps and provide everybody with the chance to live in comfort, according to the hard works they put in to lead through(Sarah., 2014). Some of the major named reasons for this widening gap are namely, job insecurity. In a survey conducted regarding the same it was found out that one out of every other three persons was insecure about his/her job, which is 7 percent more than the statistics from the last survey. Around 37 percent people stated the difficulty in finding a new job in case of job loss or unemployment. 60 percent of the part time employees demanded an increase in the working hours and the rest 70 percent demanded a regular job. A cut in wages, due to numerous reasons is another factor contributing to this enhancing gap. In the social scenario the amount of income received plays a vital role to maintain the balance in the society. In 1950s the gap has started widening up and currently the gap is at its top point. Such inequalities within a nation further press the economic matters and in turn affect the productivity, which ultimately can lead to financial crisis in an economy. Hampering the labor growth can yield economic instability in a nation(Anne., 2015). Health is an issue that needs to be managed appropriately as if an individual isnt mentally, socially and physically healthy, he/she cant add on to the productivity. The gap often leads to such factors which affect the health of the bottom population. Educational opportunities should be made available for all the people of the nation as it will lead to skilled labor force. The education can help citizens with availing better job opportunities and yielding productive capacity(Lenore., 2015). Inequalities can lead to the hampering of investments being made and the political and economic stability across the country. It is visible that the rising impact of the rich people in the society has made an effect on the financial benefits of the po or and middle class and has in response turned down the long and short term growth. Such inequalities lead to the destruction of social and trust factors which hamper the investments being made. Inequality between the rich and poor make the solving of disputes even more difficult. It acts as an obstacle in the conflict, economics, which can in turn degrade the opportunities available for the citizens(Michael., 2013). It was in the news that the richer strata of the Australian continent earn five times more than the people at the bottom line. The richer strata are the owner of 70 percent of the wealth of the bottom 20 percent(Will., 2015). The report stated that despite the efforts put in by the government in order to decrease the gap like the creation of more employment opportunities and the enhancement of wages for the workers. But, all the advantages have been again availed by the wealthier strata of the Australian continent which clearly depicts that the richer population is getting richer whereas, the poor are getting no benefits(Peter., 2014). Conclusion: The need of the hour in the Australian continent is social justice in terms of economic layout and social scenario. In order to eradicate this widening gap between the wealthy and the poor requires revolutionary transformations in the capitalism model(Federico., 2014). The unorganized split of wealth in the population needs to be analyzed and tackled appropriately in order to avoid the worst comings in the future. Bibliography Anna., P., 2017. The Sydney Morning Herald. [Online] Available at: https://www.smh.com.au/business/workplace-relations/divide-between-rich-and-poor-in-australia-is-growing-20170203-gu5bkw.html [Accessed 8 may 2017]. Anne., H.D., 2015. PARLIANMENT of AUSTRALIA. [Online] Available at: https://www.aph.gov.au/About_Parliament/Parliamentary_Departments/Parliamentary_Library/pubs/BriefingBook44p/EconEffects [Accessed 8 may 2017]. Federico., C., 2014. Australian policy online. [Online] Available at: https://apo.org.au/node/42752 [Accessed 8 may 2017]. Judith., I., 2015. The Sydney Morning Herald. 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[Online] Available at: https://www.smh.com.au/federal-politics/political-news/oxfam-survey-finds-widening-gap-between-australias-rich-and-poor-20140615-3a5vd.html [Accessed 8 may 2017]. Schipp., D., 2016. news.com.au. [Online] Available at: https://www.news.com.au/national/income-inequality-means-were-no-longer-the-land-of-the-middle-class/news-story/90821b0b0b013babd29d2ac4c5dfd304 [Accessed 8 May 2017]. Will., O., 2015. NEWS. [Online] Available at: https://www.abc.net.au/news/2015-06-22/acoss-report-finds-rich-getting-richer-much-faster-than-poor/6563020 [Accessed 8 May 2017].