In numerous countries around the world there is a certain disproportion in the amount of earnings between the low and middle classes and the richest part of society. The spectrum of opinions whether it benefits country’s economy and, if so, to what extent, is extremely wide. Should the state’s elite attempt to limit the gap in people’s incomes or let the situation develop uninterruptedly.
Naturally, the income difference reflects the amount of responsibility and risk one willing to undertake in his endeavors. And people’s desire to make more stimulates skills like entrepreneurship and competitiveness, it drives people to invent new approaches, which is, in general, contributes to county’s development level at the world stage.
Nevertheless, for the prevailing part of denizens awareness of such uneven income level feels irritating, which often lead to polarization or even internal confrontation. Some individuals just cannot find a proper justification why other’s wealth is hundreds of times bigger than their own, considering the equal day’s length for everyone. I see a way to tackle this situation governments need to implement progressive taxation systems. It simultaneously increases taxes paid by extremely rich and allows poor to pay less or avoid paying taxes by applying for programs of social support.
In conclusion, the unevenness of income among social groups may become a point of argument in modern economy. The right approach to solving it, in my opinion, is to devise tax leverages to rearrange financial flows between those groups. So the businesses are not limited in gainful activities while their success serves as a source of support for people who require such.