Which economic policies should governments introduce to tackle rising global inequality?

Over the past century the growth in globalization has grown to a great extent in which its has proven to benefit rich,
wealthy western countries such as the USA and United Kingdom more than dirt poor eastern countries such India
and many African countries creating a global inequality crisis. The World Inequality Report : 2020 ,the most
authoritative and up-to-date account of global trends in inequality, suggests these surges of inequality in recent
years have come from the development new online and mobile technologies and rapid technological change.
Although organisations such as the ‘United Nations’ and ‘The Equality trust ‘ vow to decrease the inequality gap. This
can only in reality be entirely achieved through the aid of national governments who will try to steer this crisis with
use of many economic policies such as changes in minimum wage, income tax, investments in education and change
in residential segregation.

One of the most palpable policy a government could introduce is an increase in the minimum wage. Research shows
that the higher wages for the lowest-paid workers has the potential to help nearly 4.6 million people out of poverty
and add approximately £2 billion to the nation’s overall real income. Additionally increasing the minimum wage does
not hurt employment as although businesses will pay more to workers, the incentive to work and accept a job will
increase, depending on the increase in the wage. This would also increase the participation rate as the benefits of
work become greater and worthwhile then staying unemployed otherwise known as the wage poverty trap. The
lowest paid workers will now have a better standard of living and more disposable income, decreasing the gap
between the richest and the poorest. Due to the increase in the income of workers , the government will now
receive a higher tax revenue from workers incomes. This increase in revenue can then also be re-invested in sectors
such as education of low income families or such projects that help the economically weakest groups to survive.
However, these events will only take place if the increase in the minimum wage is significant enough to attract
workers or incentivise them to work