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So Why Should Economies Be Concerned About an Equitable Distribution of Income?

Essay by   •  June 21, 2013  •  Essay  •  386 Words (2 Pages)  •  1,683 Views

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Explanation: So why should economies be concerned about an equitable distribution of income?

In my point of view, I can be classified into the disadvantage of inequitable distribution of income, advantage of distribution of income and the conditions on measurements.

If a country has an inequitable distribution of income, the poor will be dissatisfied with their life and people might be angry at the government policy or their economic status. Violent conflicts can be a result of the ending of this situation. Some people also believe that inequitable distribution of income can also breed cooperation. Personally I agree with this point, large inequitable distribution of income always leads to problems of government policy or corruption. If we look at the rank that has the least Gini coefficient, we can see that those countries: Haiti, Bolivia, Botswana central African, Sierra Leone, and Lesotho. Most of them have a rich resource such as oil. Because of the corruption, the opportunity of getting that resource is not fair and this leads to the main reason of distribution of income.

On the other side, if everyone in the country has the same income, people will have the same opportunity to receive the same quality of education. There will be no more corruption or conflict. Also, a more equitable income can accelerate the growth of economic. If the poor gets the money, it will stimulate the consume ability of this country. They will be able to afford basic essentials, cars or houses. This affect will be greater than only the riches buy luxury cars and houses. Plus, they will have more access to healthcare and education.

Now, the Gini coefficient has become a very import indicator of measuring the policy in each country is successful or not. If a country has a more equitable distribution of income than any other countries then it suggests the policy is running more successfully than others. At least the ways to get an opportunity is fair.

As a conclusion, economists take the equitable distribution of income as a measurement in order to show that if the government policy is affective or not. It can also suggest the government's corruption and the happiness of the people.



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