Having a free market economy is one of the things that makes growth possible, although there is also inherent risk in it. More than one company can offer services, and the competition of more than one or two companies will help to keep services competitive and prices low. Competition, however, can also have its problems. Because of the way that some products are packaged and structured, and the multiple steps that are needed between the beginning product and the consumer, there are several areas where competition can become a problem and individual companies can get too much of the market share, thereby causing a problem for others who may want to get involved in the same type of service (Preston, 2001). Despite these issues for the economy and the free market, having the government operate something has not always gone well, either. Social security is an example of this. It is operated by the government, but privatization is something that has been discussed for its future, because the belief is that it will go bankrupt...
There has been talk about this in the past, when it was suggested that it would be a good idea to change the social security system and allow people to put some of their social security money into the stock market. By doing this, it is possible that there would be more money available for people in their later years, but the stock market has its problems, too, and people can also lose the money that they invest, which could leave them with serious financial problems in their retirement years. However, if the social security system goes bankrupt, many people will have these kinds of financial problems anyway (Ferrara & Tanner, 1998). In short, there is no perfect system. While it seems that the free market economy is better, there are always reasons to argue for either side.
The income and wealth gap continues to grow at a faster and faster rate because there is ever more power to affect policy provided to those that have such substantial incomes. Education and Healthcare There are other less direct ways in which the income gap is self-perpetuating, as well, establishing a system that purports to be meritocratic -- based on merit, where everyone has an equal chance to succeed based on
Various factors are taken into consideration when calculating the income distribution, out of which the nominal income is most common. Aside form this, attention should be given to consumption levels of both subsidy products (food, clothing, housing) as well as to luxury products and services. In addition, several social and demographic criteria of the population must be considered, such as the level of education, housing facilities (personal property or rental),
It is grossly inefficient not to means-test Social Security and Medicare. I would fix these programs by making them both means-tested. This would result in more efficient transfers to seniors who actually need the money, rather than giving money to seniors who do not need it. This would free up more money to other Americans -- even if just the average taxpayer by way of allowing for a balanced
Reuveny, Rafael, and Quan Li. "Economic Openness, Democracy, and Income Inequality: An Empirical Analysis." Comparative Political Studies 36.5 (2003): 575-601. Print. The period studied was 1960 - 1996 and the analysis included 69 countries. National income inequality is measured from a Gini coefficient data set. The authors established that democracy is able to reduce income inequality, while foreign direct investments increase income inequality. The authors note income inequality declines when there
Labor Income The Labor Market and Income Inequality Studies of the labor market have long struggled to explain the relationship between supply and demand in the labor market with the income or wage levels the labor market offers. The volatility in both of these areas -- that is, volatility both in the demand for labor and in wages -- has made it all but impossible for an adequate model to be designed
Poverty and Income Inequality Introduction Poverty and income inequality draw a great deal of attention from activists, scientists, and politicians who are attempting to propose a permanent solution to these two socio-economic issues. State intervention is often anticipated in this area. There is, however, no agreement regarding the most effective instruments and techniques, as well as regarding the extent of public outlay for the sole purpose of reducing inequality and poverty. Various
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