Wednesday, April 25, 2012

Economic Inequality

Why hasn't the issue of poverty been solved yet? It has been in existence since the beginning of time! What's the deal, right?

There are inequalities in the economy due to the fact that individuals in the third world are forced to work for lower wages than those in the developed world. For example, if we look at the wages earned by a shoe maker in the United States and someone doing the same exact job in the slums of the Middle East, the pay ratio could be something like $10:$1. Workers in the developing world are being undersold which keeps them at or below the poverty line. This act is being further supported because we continue to run the economy as a market of buyers, so we prefer to pay the cheaper price for the same product. In doing so, we are furthering the third world’s dependency upon us and essentially, maintaining poverty. 


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