What is the relationship between economic growth and inequality?
Economic growth and inequality are often a button problem when discussed in economic circles and between individuals. Naturally, the relationship exists between the two economic items that date back to Adam Smith, who is historically considered the father of classical capitalism. There is a relationship because economic growth allows some individuals to rise above their current economic level, while others remain behind. The cash differences between the two are the result that pushes economic growth and inequality, although this gap can be closed over time. In a free market company, most individuals can overcome this gap of work and work, as Adam Smith has discussed in their many writings on this topic. Other economic models - namely socialism and communism - are not demonstrated through History as engines of economic growth that serve their own interests of individuals. When individuals are able to provide private ownership andWorking in their own interests, it is often possible that some individuals will promote their economic position, while others do not have to. Thus, the relationship between economic growth and inequality begins among many individuals in the free market society. The real purpose is to understand how to overcome this gap and not judge it as unfair unfair.
The main factor that pushes the capitalist free markets in front of others is the equality of the opportunity that exists in this market form. Almost all individuals can move forward in their income through education, hard work and the benefits of other individuals working in their own interests. The point that needs understanding between economic growth and inequality is that there is no warranty of equality of the result. The individual does not have to be the same in terms of economic growth or other money gains between differentMi types of work. The ultimate purpose is to close the gap between economic growth and unevenness and not to delete it, because the latter prevents any motivation for hard work.
arguments for government intervention in attempts to eliminate a gap that exists between economic growth and inequalities are often emotional than rational. While no one likes to see another individual, it is difficult to feel the benevolence when suffering comes from lack of work or intention economically. Theoretically, this idea falls along the line of Darwin's evolutionary thinking, where weak, who cannot adapt and survive, do not deserve to remain in society. Although this concept initially seems rough, it creates some correlation with the idea of working in its own interest in society. Another idea is that this is made possible by free markets who help others as a reward received from hard work is more than necessary to share with charity organizations that help less privileged.