Category: Economics

Social Problem

Social problem - the discrepancy between the existing and necessary state in mass behavior and actions of people, the level of their needs that affect the lives of social groups, communities and society as a whole and requires a collective effort to overcome it. To identify socially significant problems to determine the scope of the existing discrepancies desired and the current state of the problem conditions, the extent of its impact on the life of society.

Social Inequality

The economic and social inequality is important social problem in the world today. The natural and the social inequality of people are fundamental to human life in any society. Natural inequality is due to the physiological and psychological differences (gender, age, height, hair color, temperament, intelligence and so on). Social inequality is generated by social differences that are associated with dissimilarity functions performed in the society, different possibilities in the possession of resources and rewards, differences in lifestyle, social position, etc.

Differentiation of People

Differentiation of people and groups in social strata, characterized by inequalities in income, education, occupation, participation in power structures and so on, is called social stratification. There are three main types of social stratification: 1) the level of income (rich and poor); 2) the political status (with power and do not have it); 3) professional roles (teachers, engineers, doctors, etc.)

Economic Inequality

Social inequality in income is called economic inequality. In the modern world, the problem of economic inequality is one of the most important, since it applies to all countries in the world and has a growing trend. This is one of the main topics in the public debate in developed countries. Especially notable in this regard, the United States - President Barack Obama even called social inequality "the main issue of our time." Now 1% of the richest U.S. citizens get about a quarter of total revenues (30 years ago, they received less than 10%) and own 35% of all assets in the world. 20% of the richest people own about 85% of assets. Timothy Know, author of the book devoted to this problem "The Great Divergence" claims that it is a gradual disappearance of the middle class phenomenon. America is moving to become a society of rich and poor, deprived of basic layer of people with an average level of welfare. However, there is an opposite trend. In Latin America, traditionally characterized by very high inequality, inequality in the last decade has been declining.

The reasons are varied of rising inequality - this is changes in the tax system in the 80's, and globalization, and increased immigration, reducing labor costs, and ultra-fast growth of compensation of top managers.

The Consequence of Economic Inequality

The consequence of economic inequality is infringement of stability of society. Economic stratification of the population leads to increase of social tension, to its disorganization, social disruption, increased poverty and crime. However, the equation of income, property, power deprives individual’s important stimulus to action, a source of social development, which is a socio-economic inequalities, and thus leads to the stagnation of society.

The main way of solving this problem is to conduct by effective social policies. It should include the provision of assistance to poor families, protection of living standards, the development of education and ensuring people's qualifications, unemployment assistance and protection from monopolies.

According to the head of research at Oxfam (an international organization dedicated to finding the cure for poverty), Duncan Green, "levels of inequality in the world are grotesque." In this case, according to scientists, a small increase in the level of redistribution between rich and poor alone would be enough to change the lives of millions of people.

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