The Indicators and the International Trends of Inequality in the U.S. - Paper Example

How Inequality is measured in the U.S, the Indicators and the International trends

For the past 30 years, the issue of wage inequality has always had controversies because the level of inequality approached extreme levels due to the Great Depression. The general characterization of the trends of inequality was oversimplified due to the actual patterns of economic change (Viotti 56). One way inequality is measured in the U.S is by using the Gini coefficient. The procedure uses mathematical measures by looking at how income is distributed to the society. By lining the people or the poorest to the wealthy people, this method calculates how much each earns and measures how the community can become one financially.

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The population, in this case, is split into groups by using the proportion of total wealth each group held and made the comparison. Usually, people use the smallest percentage to represent the wealthy and 99% as the rest. In the U.S, for example, the method has used one percent group to be equivalent to 40% of the nation's wealth (Viotti 59). The primary source of inequality measures that is used is the household surveys because it tracks both the consumption and income expenditure. However, this method varies from countries based on the criteria used. For instance for Lattin America and the industrialized countries, the income surveys are used but the Middle East, Sub-Saharan Africa and South Asia, the use of consumption is used.

Given the fact that household measures have smaller shares than their incomes, it means that many citizens have poorer households than the wealthy who have a higher savings rate. Estimates have also shown that there is an underestimation based on the consumption because of the extent of inequality. In 2013, for instance, poverty and shared prosperity had the same shares even though every region had its ratio (Viotti 61). In other words, the data usually understates the inequality level in countries that have high consumptions when a comparison is made where income survey was in use.

This type of measurement, however, has a few challenges when it comes to consumptions and incomes. Most people believe that top salaries rise faster than average income. Since the data is limited, it is clear that one percent of the rich people in the U.S has been increasing since 1970 and the first half of the 20th century. A good example is Japan and France. Not only do such countries control a small share of the national income but have shares that take time to rise. Such states are remarkable because by the 20th century they had top share income (Viotti 68). The evidence in the developing economies is therefore limited due to lack of the tax record data. In South Africa for example, they have been sharing one percent of their shares for more than 20 years when compared to the United States.

How Economic growth can Finish Poverty

Various arguments that promote economic growth tend to increase the income of the society by generating more jobs. For the last 100 years, economic growth in the U.S and Britain has been the only way of reducing the levels of poverty. However, this never meant that the growth of the economy dealt with the poorest (Klasen 239). This later became a significant concern because of the widened poverty rate, the wealthy classes, and the highly skilled personnel. The growth of the economy, in this case, is not a guarantee that it would finish income inequality. Several reasons that show why bias can never be ended through the growth of the economy include:

• The growth of the economy only creates the best opportunities for people that are highly educated and skilled. In the U.K, for instance, the wage growth for highly paid jobs grew faster than the unskilled jobs.
• While modern economies create some flexible jobs, it has made the wages to lag due to average earnings.
• The government in the UK is indexed linked, and this means that anytime there is inflation it increases. In other words, the benefits fall behind the average earnings (Klasen 240).

In developed countries, the wealthy get their dividends and interest from their assets, and such funds are used to re-invest to increase their wealth. Even though their wealth creates a cycle of money, it does not return the money to the widened wealth and income inequality. According to the World Bank yet though economic growth remains the best way to reduce poverty it also has growth limits (Klasen 245). The report added that many nations need to facilitate this growth with policies that ensure the poor are accessed with resources. Such resources are distributed through growth by promoting governmental programs or inclusive growth such as the direct and conditional cash transfer. Therefore, more focus is needed to make growth more inclusive by using programs that help the poor directly.

To deal with this, the World Bank offered a prosperity goal that was to be shared by the shareholders to bring into understanding how to balance the inequality of opportunities and income. Since there should be a significant process designed to lift people out of poverty most of them remain poor because of lack of opportunities (Klasen 249). The best way is by focusing on the bottom 40 percent to ensure the poor reap the full benefits whenever the economy becomes better. For this to work, it is vital to determine the characteristics of the bottom 40 percent because they all have a difference from one country to another. An excellence example is Rwanda, where 63 percent lives in extreme poverty. This means that focusing on the entire 40 percent cannot bring change. On the other hand, while Colombia's eight percent lives in high poverty, Turkey has a fractional standard because only 1.3 percent lives in extreme poverty (Klasen 252).

While most of Bangladesh's population lives in rural areas, a smaller percentage in Brazil is wealthy. In Turkey, only 55 percent managed to get the secondary. Therefore when it comes to employment, only 63 percent of the bottom can get good jobs while the rest are left to do casual jobs. The complexities are shown here show that unless specific policies are affected, 40 percent of citizens in many countries will remain poor. In other words, tackling the issue of poverty requires one to understand how the sick leave and the hardships they face. This means that countries that have a large population such as India, Nigeria, Bangladesh, Congo, and China add up to 760 million people that live below the poverty line (Klasen 256). When countries like Kenya, Ethiopia, Tanzania, and Pakistan are added then this shows that nearly the whole world lives in extreme poverty.

Discuss how health benefits in the United States

Essential questions have come up that need urgent changes within the American health care system. Concentration factors point specifically to Americans who are charged more for their insurance covers and worse off those said not to have medical cover at all which is nearly half the population (Black 265). The weak standards and order of care directly related to higher value and decrease in good results in the care system are some of the factors Obama office and authority need to examine keenly alongside funding of the uninsured persons in America. Insurance covers will not mean much no matter how much they seem to support if the health care system proves unaccountable and without use to the people.

Certain factors such as the money required, the inefficiency of care, and the half without health cover must be changed to see the beauty in the health care system. The proper care, moment and situation must be made better to see a good change. Prevention is always better than cure; therefore, encouraging people to remain in good health should be top of the list to avoid critical junctures (Black 265). As it stands now, there seems to be more work up and procedures which are not essential and possibly dangerous instead changes should be made for a better fit for each case in the health system.

Quality betterment and value can be achieved if each case group was analyzed individually and eventually have a positive influence.

Medical research has shown that advancing focused procedures to suit particular sufferers is vital at reaching a decisive goal. Good results can be achieved by using precedented cases that indicate usage, how simple or hard the situation might be or even personal features of a patient. Science has shown that special intercessions can benefit weaker patients like invalids who have more than one harsh disease, those that cannot afford healthcare, people going through change health-wise in society (Black 269). For instance, Chronic care management systems can be used in cases of people with persistent and long-term diseases leading to profitable results, less expenditure and the sufferer and his relatives would also be happy in the end. For better results in the changes to the system, a good delivery system must be the goal focused on the number of people who have the least opportunity to proper entry into the care management systems in place.

High standards and proper benefits are the goals in the changes needed that will ensure excellent service and provider compensation.

Reform provider compensation - Focusing more on the responsibility and value of care rather than the capacity and intensity of service is vital to be able to see and achieve positive change in the health care system. If medical institutions and practitioners are not adequately funded, certain areas such as after-care, hospice, and prevention programs also suffer thus becoming ineffective in the long run. As the system stand presently, motivation is focused more on care and complicated care rather than the success of the procedure involved at the least funding required (Black 271). A good change can be achieved if less of something that is of the best quality than having more of little class: more organization, focus on care, success in results.

Hence if proper funding is not allocated well to assist practitioners and institutions in providing low cost of care, then the problem of ineffective care will persist and maybe increase in the American health care program. Reform welfare blueprint makes sure that money does not hinge health care provision and interest. If someone knows that they will have to pay for care from their own pockets is not encouraging, and many decide to bear the disease than attend to it (Black 278). However, if the health care system takes up some of the cost, then it will encourage the person to at least spend on primary care making headway in case of unforeseen expenses in health.

Explain in detail the funding needed for education in America including its chronicle reformation and persons responsible for this funding.

Funding for tertiary education in America was increasingly on the rise. Before many vehicles we see now, the Statue of liberty many universities were available. Gentlemen have to pay for their sons in one year more than they spent themselves in the whole four years of their course," Research done by the Organization for Economic Cooperation and Development (OECD) indicates that America utilizes more money in tertiary education than anywhere in the world (Ovidius 115). This fact is supported by the new international report in a quick view. The OECD has found that American colleges global leaders of the "ancillary services" which constitute student expenditure on medical issues, feeding, accommodation, transportation, and other welfare requirements.

Specifically, each student requires approximately $3,370 for these needs which is triple what other 1st world countries experience. An exclusive factor is that of living away from home which is what American students do in cases of tertiary education. This is a costly problem. Canada and Europe have minimized campus...