Global Issue:

Income
Inequality

General problem
Income inequality:
is one of the key challenges
of our time
is the most significant trend
of 2015

is the gap between rich and poor, economic inequality or wealth gap
is the state of affairs in which assets, wealth or income are distributed
unequally among individuals in a group, among groups in a population, or
among countries.

General problem
people with more than $ 1 million net worth
represent just 0.7% of the global population, but
they have 41% of the worlds wealth
people worth of less than $10,000 represent 69% of
the population, but just 3% of global wealth
UN: Income Inequality is a major problem linked
with challenges such as poverty, environmental
degradation, persistent unemployment, political
instability, violence and conflict

General problem

Causes of income inequality

Globalization

Increase in productivity
Work by high wage
individuals

Lower cost of capital

Policies to Income inequality

Two factors driving economic inequality:

Fiscal Policy => the primary tool of governments to manage

inequality
Broadening access to universal healthcare and to high-quality
secondary education for poor people

Policies to Income inequality

Solutions from professional experts
in this field

Joseph Stiglitz - strengthen of the legal framework to prevent abuses;

market forces should be shaped, not left as forces; better care for the
youth

Warren Buffett - better taxation system; investing in struggling businesses

Nouriel Roubini - Higher taxes; governments should limit the tax breaks
and subsidies for major energy, pharmaceutical andfinancial companies

General problem
Conclusion
To even Income Inequality
will be needed:
strong national institutions
adequate resources
more responsive leadership
better policy making

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