What is a definition of poverty that is understood as a significant lack of material well-being, inadequate social and economic situation of citizens. It is considered as a social and economic problem, which, however, are not always accurate. The quality of material produced and educational standards can vary greatly. In addition, the structure of the population is changing and the pattern of income and consumption is being traced.
There are many definitions of poverty which are often similar in their meaning, for example, the concept ‘”poor logic”. In this case, an impoverished person is one of the lowest categories of the population.
In the broad sense, the term ‘poor’ is applicable to both material and spiritual resources. Since they are associated with the lack of ability to create wealth only for themselves, they are often regarded as the lowest classes of society.
Classification for poverty essay
Based on long observations, experts identified three main types of economic inequality: material, social and spiritual.
Material wealth is the sum of material resources which are accessible to all members. This category includes all types of material goods, including physical and mental resources.
Social wealth is a combination of economic, social and spiritual resources. It is usually understood as the sum of groups which are willing to spend on the market and are able to compete on the terms of labour. In addition, all these elements have a significant role in the processes of social mobility and are influenced by the action of other factors, including population growth.
In the past several decades, the imbalance between the positions of material and social groups has decreased. In the income inequality essay conclusion, you may note that the changes in the balance between the positions of social groups have partially reversed the trend of their growth.
But the trends of social mobility have been consistently observed. In the 1960s, the top of social mobility was determined by the balance between the positions of the middle class and the wages of labour force. A little later, however, there was an abrupt change in the balance of economic and social movements.
As a result, from the 1960s to the present time, the wages of labour force have consistently increased. Work income is one of the most important indicators of the social and economic status of a person.
The influence of social mobility on the wages is usually considered inverse (relative to other incomes). This is the inverse side of the “stickiness” of the economy, which should be taken into account when considering income inequality essay topics.
In the 1960s, the real wages of the middle class have grown significantly. But the growth stops at the level of 1-2% per year. In the early 70s, the wages of the middle class were held for 3 times higher than the incomes of the lowest class. In the late 80ies, the wages of the middle class have consistently increased. There were double the amount of middle class in the population, which was described as “billionaires” in the early part of the 20th century.
If you want to make a compelling argument on income inequality, you may refer to the example of other countries of the world. The independent analysis of the economic status of the states shows that the level of the middle class is its average earnings, which are determined by the parameters of the following factors: the size of the population, the average income of its members, and the level of economic development (economic indicators, total income, wealth, etc.). The factors of this analysis are social, political, legal and organizational.
In many countries of the world, the process of economic stratification of the population occurs through the mechanisms of social control. The attempt of such control is made by the elite groups seeking to accumulate unlimited gains at the expense of the people. As a result, the middle class is alienated from the system of economic activity, is activated as a social institution by the active participation of the masses in economic life.
The activities of the masses in economic life are determined by the position in the class structure of the society in the event of the dominance of the proletariat in the social hierarchy.
In the system of property differentiation, the middle class is one of the most important components of the economic hierarchy. Next to the elite, it is the backbone of the middle class of society. Through its maintenance, widening and strengthening, the state can prevent high income inequality.
The procedure of economic stratification of society is repeated all over the world. In the minds of the participants, it is always possible to link the production of any part of the population under the influence of the middle class, just as it is an independent social institution.
For many centuries, the middle class has been a source of titanic energies and potential. The huge merit of the middle class is the availability of a large number of cheap and effective ways to provide the poor with the lowest level of poverty.
The main thing that makes the middle class important is its ability to generate wealth only for itself.