OECD countries 

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2. Article Summary
The article cites varying levels of inequality in comparative incomes in different OECD countries. Evidently, rich households tend to progress better than poor counterparts. In some countries, formulations of strategic plans have resulted in considerable poverty reduction. While attempts have been directed towards curbing the challenge, economic crises remain major challenge to income redistribution. In this sense, loss of jobs has prompted increase in inequality. However, the reduction in earnings of top earners is likely to reduce the gap.
With increasing globalization, the gap is likely to increase. Notably, many facets of direct impact on economic inequality must be taken into account. For instance, ageing populations in OECD countries is likely to diversify incomes. Besides, changes in executive compensation are also likely to boost top earners. Moreover, gender disparities play a role in economic gap. To this end, inequality was a player in promotion of financial crisis.
In view of the trend, income inequality is likely to negatively impact on political, economic and social spheres. Therefore, policy makers must implement policies that would promote income redistribution. Policy changes should also be directed towards alignment of public services as long-term strategies of curbing the trend. Nevertheless, such policies are quite difficult to implement in emerging economies.
Question 4.1
In my view, inequality is promoted by need to maintain status quo. This view is the same as that of the article which notes that the rich continue to get higher compensations while the pays for the poor keep deteriorating.
Question 4.2
This text is good analytical tool because;
1. It gives in depth coverage to the economic scenario in the OECD countries relative to the financial crisis
2. It looks into many factors that are of influence on the economic disparity.
Question 5.1.1
1. Differences
2. Gap
3. Trends
4. Disparities
5. Income inequality
6. Distribution of income
7. Higher inequality
8. Lower inequality
9. Fiscal consolidation
10. Growing inequality
11. Diverse household incomes
12. Rising inequality
13. Income inequality
14. Rising income inequality
15. Inequality of opportunities
16. Equality of opportunities
17. Inequality in developing countries
18. Political instability
19. Social inequality
20. Economic inequality
Question 5.1.2
1. High income inequality- rising income inequality; the use of 'rising' is indicative of the trend in inequality.
2. Reduce inequality- lower inequality; the use of 'lower' reflects that the target of legislative changes is being realized.
Question 5.1.3
The topics explored in the article include:
1. The levels of inequality in OECD and emerging economies
2. Factors involved in increase of income inequality
3. Reasons why policy makers should worry about income inequality
4. What policy makers can do to reduce inequality
Question 5.1.4
1. It can stifle mobility...; can is used to indicate probability and uncertainty
2. Policies to address causes of rising inequality could be made more efficient...; could is used to indicate a future possibility
3. ...the search for high returns by investors with rapidly growing income might have contributes to asset price bubble...; might is used to suggest a possible cause if a current scenerio.
4. ...quality education and training which will enable workers to take up better paid jobs...; will is used to suggest future development
5. The need to address the remaining gender gaps in education and employment should, therefore, be considered...; should is an affirmation of authority, it reflects an order or urgent need.
Question 5.2.1
a. The production of the article in 2011 was well timed considering it was in the aftermath of the economic crisis. It provided ideal ground to understand the causes of the crisis.
b. The economies of the countries was stable.
c. Inequality is widespread in developing countries hence the comparison creates an understanding of the level of its impact on economy.
d. Yes. The period saw increase in economic gap in US with many middle income earners having their purchasing powers significantly reduced. Besides, many lost their jobs.
Question 5.3.1
The article is quite objective because it tackles real-time issues since it was produced at a time when US was experiencing grave economic challenges. In addition, it makes critical analysis through comparative study of economic situation in different countries
Question 5.3.2
Increasing the income margins increases inequality. However, the article outlines strategic policy formulation targeted towards tackling inequality hence a reflection that the challenge can be resolved.
Question 5.3.3
Based on the article, globalization is to blame for the stalemate because it gives the rich an opportunity to diversify their investments and become richer. It also promotes exploitation of the opportunities that could have been used by the poor to improve their living standard. Above all, it results into sourcing of cheaper labor thus ensuring the poor remain poor.
Question 5.3.4
Within the world setup, the OECD member states have had much influence on world economic setups. As a result, they actively participated in ideological formulation leading to decrease in economic gaps within the countries. This was furthered by their political and economic dominance which saw them invest in other countries through opportunistic setups provided by the free market economy. Unlike developing countries, these OECD countries experience remarkable political and social stability.

OECD Ministerial Meeting on Social Policy. (2011). Tackling Inequality. OECD

Asked in Arts & Humanities - 849 days ago

Tags: OECD countries 

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