Social Sciences, asked by mohitkumarm9513, 1 year ago

Is it true that democracies are not very successful in reducing economic inequalities?

Answers

Answered by Avanish010
4
Hi there,
it is soc because Social inequalities exist between ethnic or religious groups, classes and countries making the concept of social inequality a global phenomenon. ... economic inequality is caused by the unequal accumulation of wealth; social inequality exists because the lack of wealth in certain areas prohibits these people from obtaining..
Answered by Anonymous
0
There are various reasons for economic inequality within societies. Recent growth in overall income inequality, at least within the OECD countries, has been driven mostly by increasing inequality in wages and salaries.[11]

Economist Thomas Piketty argues that widening economic disparity is an inevitable phenomenon of free market capitalism when the rate of return of capital (r) is greater than the rate of growth of the economy (g).[49]

Common factors thought to impact economic inequality include:

labor market outcomes[11]globalization, by:suppressing wages in low-skill jobs due to a surplus of low-skill labor in developing countriesincreasing the market size and the rewards for people and firms succeeding in a particular nicheproviding more investment opportunities for already-wealthy peopleincreasing international influence [3]decreasing domestic influence [4]policy reforms[11]extra-legal ownership of property (real estate and business)[10]more regressive taxation[50]plutocracycomputerization, automation and increased technology, which means more skills are required to obtain a moderate or high wageethnic discrimination[51]gender discrimination[52]nepotism[53]variation in natural ability[54]neoliberalism
Growing acceptance of very high CEO salaries, e.g. in the United States since the 1960s
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