The disparity in rich and poor people is a major problem in modern world. The majority of countries have this issue and it is increasing over the years. There are several causes for this issue. Also, there are some solutions as well.
At present, the gap between rich and poor people is enormous. The main reason for this problem is the unequal salary distribution and taxation. In some countries, the tax rates are very high, while the salaries are low. The cost of living is rising over the time due to the global inflation. This leads people to suffer from high financial pressure. In some countries, lower income earners are the people who pay the highest amount of taxes. For example, a person who earns 50000 pays a tax rate of 30%, while another person earning 100000 paying a tax of 25%. Likewise, the unequal taxation is a mandatory cause of this situation. In addition, the classism takes place for decades, where poor people could not able to cross the line of rich people. They usually need to work under rich people. This is another reason for the huge gap among rich and poor people.
On the other hand, there are few solutions to cope with this scenario. The governments should implement strategic financial decisions and establish rules to avoid unequal taxation. For instance, establishing reasonable tax rates for all locals. Furthermore, the companies should follow a better organizational framework in income distribution. However, this may depend on the experience and the performance of the employee. In addition, the governments can provide incentives for the people who are suffering from poverty, while ensuring whether they have enough infrastructure facilities.
In conclusion, increasing in rich and poor gap is a big red flag for the county’s development. Therefore, the people the authorities must make strategies to overcome this harsh situation.