America is now experiencing an unequal economy growth, which means the richer get richer and the poorer get poor. China is also undergoing this situation. Some people believe that the inequality is essential in terms of rewarding success and entrepreneurship.
However, the inequality may also bring social unrest. There are several causes of the growing inequality. One of them is the weakness in basic education. Take America as an example, there is no doubt that America’s superior post-secondary education creates a group of high earners. However, a significant number of low class population are not able to move up into an upper class because of bad basic education. Another main reason of the inequality is the lack of regulation over businesses. Some institutions create large profits, but at the same time, they incur costs that fall on everyone else such as pollution and bailouts that draw from tax payers’ money. As a result of social inequalities, more and more social entrepreneurs appear, trying to improve this phenomenon. Yet, it is still the government’s obligation to reduce the inequality and help everyone get better off.
Reference: