Income Inequality Essay. Social Sciences Assignment.

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Income inequality
What are the impacts of income inequality and the position of governments in the affected countries in solving the issue? Although income inequality may seem negative, it also has positive impacts on economic growth. Most economists have missed the argument and research on how inequality yields positivity. Hence, people across the globe concentrate on knowing the adverse effects and how to fight them. This engagement leads to the need for governments to intervene and decrease the levels of inequality. However, the government may or may not be in the position to solve the issue adequately.
Provision of incentives entrepreneurship
Income inequality impacts positive growth through the provision of incentives for entrepreneurship. Innovation is prevalent in developing countries, whereby few of the willing individuals in the population get a chance to accumulate the substantial capital needed to start and run a business successfully. Also, some individuals can gather some resources for acquiring standard education. Although some economists may perceive that the actions could hurt the economy more, it stands in the position of a future investment that could aid in achieving equality. On the other hand, the developed countries with vast numbers of entrepreneurs report increasing income inequality (Halvarsson et al.). Could the two economic aspects have parallel implications for growth? Is income inequality paving the way for entrepreneurship, or is the latter leading to the former? People become creative in the face of income disparity. As most of the wealth continues going to the already wealthy individuals, the people in poverty and the adverse levels have to seek means of survival (Naudé, 1). This gap iterates to the thinking in line with entrepreneurship as a source of income. How do interested individuals get the capital to start their business? The only way is incentives since they cannot afford the required money.
According to Halvarsson et al., entrepreneurship is not a source of income inequality but an optional source in various economies, whether in developing or already developed countries. Most people in the global economy keep on seeking for ways to achieve more. On the other hand, the low income earning individuals are striving to thrive and eradicate the poverty around them (Naudé, 1). Working out these desires yields the opportunity to weigh different options, and entrepreneurship is always in line. Although the different groups of individuals may have varying levels of capability to input in the plan, they all have something to present. Halvarsson et al. argue that studying entrepreneurship in income inequality shows the importance of the aspect in flattening the curve in the disparity since most of the people in the economy can earn something towards supporting substantial living. While some people think that entrepreneurial ventures promote inequality in wealth and the overall income, development economists want to look into the process to prove the involved populations wrong (Naudé,1). Investors go through an intense process to achieve the capacity of becoming entrepreneurs. Also, different ventures are triggered and est...