Economic inequality has become a hot topic in many countries. Some economists claim that it is good for growth and improves the quality of life of everyone, while others argue that wealth concentrations erode middle-class jobs, exploit disadvantaged groups and lead to social problems like crime and drug abuse.
Many people believe that the gap between rich and poor is getting worse. In a Pew Research Center survey, a median of 54% in the 36 nations surveyed say the gap between the rich and the poor is a very big problem in their country. Many people, particularly those on the ideological left, think that economic inequality is driven by wealthy people having too much political influence. This view is most common in Latin America, where a majority in Chile, Colombia and Mexico say this is the case.
A significant percentage of people – 59% in Ghana and 42% in Italy – also believe that some people are born with more opportunities than others, which contributes to economic inequality. Those with less education are more likely to be among those who believe this.
Addressing economic inequality requires a wide range of policy changes. Some of the ways that it can be reduced include eliminating corporate tax cuts, protecting and strengthening unions, raising the minimum wage and expanding public school funding in low-income areas. However, none of these measures alone will eliminate the problem if it is caused by structural changes in the economy such as technological advancement and globalization.