The global gap between rich and poor

80 percentof the entireworld’s wealthisheld byonlya quarter of theglobalpopulation, according to a study from the UNDP.Thus the gap between rich and poorisgrowing wider. The unequaldistribution ofincomeand wealthin developing countriesisthehigher than in developed countries, but as well in the rich industrializedcountries themiddle classis shrinking.The gapbetween richand poorin the developingcountries is directlyvisible. Theremanypeople live in absolutepoverty that is lessthan$ 1.25perday per person. It is about survival. In developedcountries thepovertyhasa different face, but most areas well affectedby this development.

In thepastdecade, the income gap isnotonly inveryunequalcountries such asIsrael orthe United Statescontinued to open, butas wellin countrieswith traditionallysmall differences. These include for exampleGermany, Denmark, SwedenandotherNordiccountries. The top tenthof the German population earnseight timesas much as thebottom.One reason for this is that the lower income in the last years just slightly increased. Many people in both poor and rich countries can´t live of their incomes. The cost of living continues to rise, while there is astagnation of wages and salaries. At the same time the social sector was seriously affected by the financial and economic crisis. In this sector many savings was made.

More money for education or sociallydisadvantaged could help to reduce the poverty. For example,the income gapis offsetby aprogressive incometax schedule.Who earns morewill paymoretaxes.There are already good concepts in a few countries like the “Bolsa Família” in Brasil, which helps direct disadvantaged people.

Such social programs are just exceptions. The best solution is education. Manychildren in developingcountriesneed to leave theprimary early, because they need to help the families in the agriculture. So there is just a little chance to go to a High school or even the University. Even in developed countries is the access to education often not fair. Children from the upper classes in Germany have a three times higher chance to goto High school (Gymnasium) than children from working class families or from families with a migration background. At German universities are only about six percent of students from a non-academic or socially disadvantaged home.

Just thebasic servicesand education can counteract the increasingincomeinequalityin the world.As long as thesharing ofhealth and educationsystemsisnotsimpleand fair, the gapbetweenrich and poorare increasing, warnstheOECD.,,15688312,00.html


9 thoughts on “The global gap between rich and poor

  1. I totally agree with you as the rich are getting richer the poor are getting poorer and the gap is widening, apparently i was told the gap is wider than it was some 40 years ago. This said it is important that neighbouhood renewal, taxes and education is needed to try and limit innequalities. This isnt helped by the fact that youth unemployment is at an all time low.Over the two decades prior to the onset of the global financial crisis, real disposable household incomes increased an average of 1.7% a year in its 34 member countries. However, the gap between rich and poor widened in most nations.

  2. I think that progressive systems of tax are the best because it allows for a fair taxing of upper class people as they pay a percentage for every class of money. (e.g 9% on the first 20,000 15% up to 40,000) This is a better system than taking money from the rich with no guidelines.

  3. The income gap between rich and poor also in Germany has grown over the past two decades considerably stronger than in most other industrialized nations of the world. This shows a study, submitted by the Organization for Economic Cooperation and Development (OECD).

    According to that, the ten percent of the Germans with the highest incomes in 2008, earn about eight times more than the lowest ten percent. Specifically, their net income amounted to an average of 57 300 euro per year, however, only the low income in 7400 € (without government assistance). The early 90s, the ratio had stood at six to one. Germany belonging in the 80s and 90s to the more balanced societies, is now only in the midfield. In Europe, only the Finns and the Swedes have experienced a greater push towards inequality experienced. However, both countries were still among the most balanced in the OECD.

  4. hmm. As of what tax people should pay is wrong. I think that it has nothing to do with mitigating or exacerbating wealth inequalities. I do agree on that there has to be more focus on educating and preventing job losses thou. Especially in the youth!

  5. The gap between rich and poor people has always been and there is no indication that it had ever gone. In recent years, it is true that it only grew bigger, but are you sure that most of the money should be pack in education ? I think that the lower social layers are suffering most in the current economic crisis. The government at the expense of reduction of social benefits and increase taxes trying to control the crisis, but they forget a bit about the people.

  6. I think it’s terrible that for many people (especially in the upper age) is no longer possible now to get a full time job. Many of them are with two or more mini jobs to support and have them finance home and livelihood. Or they are long-term unemployed. Due to the economic crisis, companies have partially no means to set full-time employees or they dont want to bind themselfs. This vicious circle must be broken by the governments urgently!

  7. There is a very bug gap beetween rich and poor also in Italy…if you imagine that a normal worker earn normally 1200 euro a month while a political 20 000 euro a month and have a lots of privileges like blu car, discounts for plane tickets and hotel.
    This is a situation inamissible if you think that they earn this money with our taxis, and nevertheless they don’t think to decrease their earnings for the good of nation.

  8. The world’s rich are getting richer, this is not suprise. The polarization among rich and poor people will always be present. Is it possible to overcome differences and have the equal life standard? In my opinion the world needs a big change in political, economic and social way. For example in my homeland Croatia the gap is so obvious. You can see divide between rich and poor people more clearly now then u could have few years ago and this is definitely not good situation to live in.


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