Social Consequences of Income Inequality

Social Consequences
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Social Consequences of Income Inequality
Based on Picketty’s Capital in the 21st Century, the most salient social consequence of income inequality is a decrease in education. Income inequality impedes investment in education as children from low-income households end up in low-quality schools and have limited chances of receiving higher education. Several studies have linked education with poverty. A study by Goldrick-Rab et al. (2016), for instance, found that countries with high inequality levels and relatively small low-income populations tend to have a higher education level. In contrast, economically unequal societies have a decreased average education level with a constant increase in the number of educated elites. The reason behind this effect is that unequal societies tend to underinvest in education. Without scholarship programs, the poor cannot afford quality education.
The inability to obtain quality education reduces a person’s ability to acquire adequate skills, which, in turn, limits their potential to secure well-paying jobs and earn a reasonable income. The future earning potential of these individuals declines as they continue living in poverty. This condition deprives low-income families of the ability to stay healthy and accumulate physical and human capital (Goldrick-Rab et al., 2016). Poverty makes it difficult for individuals to receive quality healthcare. This leaves them exposed to numerous health conditions that weaken their well-being. Simply put, income inequality continues to widen poverty among vulnerable communities, with an absolutely limited chance of declining. The rich will continue accumulating wealth and remain wealthier, while the poor will continue living in poverty. This aspect strengthens social-class division in society.
As the gap between the rich and the poor widens, public policies become highly favorable to the economic elites’ policy goals. Public education programs also become insignificant for the rich because they rely on public funds, which often entails taxes imposed on the wealthy. To address these consequences, I would use social policy by investing in education and increasing the minimum wage. As noted above, a lack of quality education contributes significantly to income inequality. Investments in education, starting from early childhood through the university level with scholarship programs and increased funding of public schools, enable low-income families to receive quality education and attain an economic niche in society. This initiative promotes economic mobility, increases productivity, and reduces inequality.
I would also use public policy to address the social consequences of income inequality by advocating for ...