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It can be argued that income inequality is the same as poverty: Being poor and rich are relative terms, meaning "how much do you have compared to other people". In this definition, without income inequality there is no poverty. Even if everyone is living just marginally above starvation, as long as it is the same for everyone it would be described as "that's life" or similar, not as poverty.
There are also arguments that income inequality is a major driving force for increasing the standard of living for everyone: Risk takers like people starting a business will only do this if they think they can make good money on it, and by doing so they supply jobs and increase productivity for the entire society. Although society will have poor people (by the mere fact that some of these businesses will succeed and their owners thereby get rich) even the poor will get a higher standard of living in absolute terms than what would otherwise be the case.
I think there are merits to both views, but I don't have a final answer.
Wiki User
∙ 14y ago
Wiki User
∙ 13y agoI think that would be a logical conclusion -- sort of the opposite of "it takes money to make money." From an economics standpoint, poverty decreases the spending power of consumers. When people don't buy, the economy doesn't do well and poverty tends to spiral.
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An unequal distribution of this was one cause of depression?
Income
What is primary cause of the cycle of poverty and illiteracy in many developing nations?
The primary cause of the cycle of poverty and illiteracy in many developing nations is lack of proper management of resources. This will result into unequal distribution of wealth and resources.
What will be the cause of poverty?
Desire is the cause of poverty in buddhism people suffered because of desire
What are the causes of poverty in Thailand?
the cause of poverty on thai society
What is the plural of poverty?
The plural of poverty is poverties. As in "the government cause so many poverties".
An unequal distribution of this was one cause of depression?
Income
What are the main cause of poverty in India?
Unequal distribution of income.High population growth.Illiteracy.Large families.Caste system.
Why is poverty a cause of economic diversity?
the poverty cause the economic diversity because a big part of sources and resources spent on poverty . One of the main reason is unequal and unjustified distribution of money parameters .
What is primary cause of the cycle of poverty and illiteracy in many developing nations?
The primary cause of the cycle of poverty and illiteracy in many developing nations is lack of proper management of resources. This will result into unequal distribution of wealth and resources.
Did speculation cause the Wall Street crash?
It was the main factor that made it happen, but there was many other reasons. Such as overproduction, unequal distribution of income, loss of export market ect.
What is a primary cause if the cycle of poverty and illiteracy in many developing nations?
The primary cause of the cycle of poverty and illiteracy in many developing nations is lack of proper management of resources. This will result into unequal distribution of wealth and resources.
Which economic trend of the 1920's helped cause the Great Depression?
The major economic trend of the 1920s that helped caused the Great Depression was likely the unequal distribution of wealth. Another factor was over speculation in the stock market.
Can poverty cause poverty?
Purely in Economic context, yes, poverty can set off a vicious circle, culminating in even more poverty. It goes something like this : Poverty > Less Income > Less Consumption > Low Consumption Expenditure > Low Revenue for firms > Lesser Production > Lesser Income for Factor Inputs > Poverty Therefore, this vicious circle will keep on incrementing. This can be prevented by suitable injections of capital investment by governments to increase availability of credit in the economy.
How does water pollution and unequal distribution of water impact industry?
places wont have enough water to water there crops and when that happpens there wouldn't be any food to sell or eat , it will cause in starvation .
What the cause of unequal distribution of water in Africa?
THere are places where water is abundant, and the people living there get to consume it. They don't have the money to create good enough infrastructure to pipe the water to places where it is less abundant.
What is the common cause of poverty?
The least common cause of poverty is undetermined. Several different things can cause poverty for different types of people. Economic instability, natural disaster, and several other things can cause poverty.
How does unequal distribution of resources cause poverty?
it is in some kind like in my country the richer people(who normally of a higher castes are more rich as compared to the outcaste people who are poor)so we can say that inequality amongst the outcaste people have a deep response on poverty too.
