Reducing the Rich and Poor divide in a Capitalistic

World
"Poverty breeds wars the degree of a country's freedom is the degree of its prosperity 0. Prosperity and Poverty
causes the economic inequality of the nation. Over the past two decades, the rich have been getting richer and
the poor have been getting poorer and generally less able to improve their life. This growing inequality has been
blamed for every social ill, from crime to addiction.

Steps Reducing the Rich and Poor divide:

Reduce Income inequality:
Income differences can be reduced via redistribution through taxes and benefits, or by reducing differences in
pre-tax incomes. The international evidence suggests that greater equality confers the same benefits on a
society whether it is achieved through one of these approaches or the other.1

Review Taxation Policies:

In general, top tax rates, which in many countries including the USA were over 80% in the 1970s, have been
reduced dramatically and there is room for more progressive tax to be restored. The amount of money lost by
developing countries to tax havens exceeds all international development aid. 2 3 This not only increases global
inequality but also means that a higher proportion of public expenditure has to be funded by tax payers in lower
income groups. In many countries taxation has ceased to be significantly redistributive.

Providing Employee Benefits:

Forms of economic democracy, such as employee ownership, employee representation on boards, employee
share ownership, mutuals and cooperatives tend to reduce the scale of income inequality and help equality to
become more embedded in a society. With this there are Possibilities for increase in jobs and job retention which
helps in economic growth of an individual. Migrant employees must also be considered for employment when it
comes to Pay.

Conclusion:
After a very long period of increase, there is some evidence that earnings inequality is finally falling due to
increases in employment and a reduction of inequality among women in particular. Earnings mobility also appears
to be on the increase after a long period of decline. Tax credits have led to increases in employment and job
retention, increasing the incomes of many low-income families. 4

References:
0. Capitalism: The Unknown Ideal by Ayn Rand
1. Wilkinson RG, Pickett K. The Spirit Level: Why Equality is Better for Everyone. London: Penguin, 2010.
2. Henry JS. The price of offshore revisited. Tax Justice Network:http://www.taxjustice.net/cms/front_content.php?idcat=148, 2012.
3. Shaxson N. Treasure islands: tax havens and the men who stole the world. London: Bodley Head, 2011.
4. The changing pattern of earnings: employees, migrants and low-paid families: The study, for the Joseph Rowntree Foundation