By Raven Fallon-Cyr
How Economic Inequality Is Good For The World
When you think of economic inequality, you probably imagine rich people spending their money on pointless objects, while poor people beg at their feet for just enough money to feed themselves and their families. Or maybe an image of a man getting his shoes shined by a malnourished child, before he goes to make a 40 million dollar stock trade, flies through some people’s head. No matter how it is framed, there are always bad sides to economic inequality, but because of this fact it often makes it hard to see that economic inequality is such a critical factor economic inequality is in our lives.
Though economic inequality is infamous for its horrific effects on the human race, it is often overlooked as a driving force in the world. It helps our lives everyday by supporting things that are crucial to our modern existence. Economic inequality is behind our improvements in medical technology, it is a strong stimulant for new ideas and finally, it is a prominent factor in our economic system.
In our world today, we hear about the terrible effects of economic inequality all the time, and throughout the world, many people choose to look at economic inequality in a condescending manner. They fail to see they ways in which it contributes to the world. In our current world, economic inequality practically runs the world. Many decisions made today come out of the need for people make more money. Some people may look at this from a “half empty” perspective, but if you look at the “half full” version, it is actually a positive influence on growth and technology.
This technology advancement is not only prominent in many different factors that shape our world, as Tomas Friedman states in his book, The Lexus and the Olive Tree, “Thanks to the democratization of technology, we can all have a bank in our homes, an office in our homes, a newspaper in our homes, a bookstore in our homes, a brokerage firm in our homes, a factory in our homes, an investment firm in our homes, a school in our homes…” (Friedman 47). With out the pressure of economic inequality, the world would not get much done. Gary Becker, a well renowned economist and Nobel Prize winner explains in his blog, “For example, it would be hard to motivate the vast majority of individuals to exert much effort, including creative effort, if everyone had the same earnings, status, prestige, and other types of rewards. (Becker)’’
Another example is found in education. Every day you hear parents talking to their kids about their schooling. Motivators like, “It’s almost impossible to get a good paying job with out a college degree,” pushes kids everyday to get a higher education. Even from an early age, kids know that money is a functioning incentive, helping them to do their best. Another idea that Becker states in his blog would be, ‘’For example, many fewer individuals would engage in the hard work involved in finishing high school and going on to college if they did not expect their additional education to bring higher incomes, better health, more prestige, and better opportunities to marry. (Becker)’’
Another prominent factor in economic inequality is around luxury. While advanced learning and new technology are important, the subject that pushes most people to want more money is the “American Dream” of deluxe items. Having money takes away the stress of paying rent and allows people to focus on more fun relaxing things like yachts, nice cars, traveling, and ski trips. People always want to have fun and not worry about life, and economic inequality provides the drive for people to excel at pursuing luxury. One example of this would be the cell phone. In the year 1983, the first public cellphone was introduced into the world. From an interview of Martin Cooper, the inventor of the cell phone, I gained information that, “the phone then cost $3,900. So that would be like buying a phone today for $10,000.” (Cooper) Because the amount of money it cost, the cell phone became a strong symbol of economic prosperity. Every one wanted the newest, coolest phone as a way to show that they were important. Economic inequality pushes people to work and create new things as an incentive for luxury, without it the would be much fewer people actually contribution to the worlds economy.
Though economic inequality has its downsides, it should still be recognized for its positive roles in our modern day lives. It is the driving force of our world that pushes people to create new things. Without it our society could not function properly, as it currently does. It is important to remember how much our lives have been helped because of economic inequality. With this acutely precise social structure, humanity has come a long way is a very small amount of time.
Work Cited
Becker, Gary. "Bad and Good Inequality-Becker." Web log post. The Becker-Posner Blog. TypePad, 30 Jan. 2011. Web. 25 Feb. 2014.
Cooper, Martin. "Inventor of Cell Phone: We Knew Someday Everybody Would Have One." Interview. CNN Tech. CNN, n.d. Web. 10 Feb. 2014. <http://www.cnn.com/2010/TECH/mobile/07/09/cooper.cell.phone.inventor/>.
Friedman, Thomas L. "And the Walls Came Tumbling Down." The Lexus and the Olive Tree: Understanding Globalization. New York: Picador, 2012. 47. Print.
How Economic Inequality Is Good For The World
When you think of economic inequality, you probably imagine rich people spending their money on pointless objects, while poor people beg at their feet for just enough money to feed themselves and their families. Or maybe an image of a man getting his shoes shined by a malnourished child, before he goes to make a 40 million dollar stock trade, flies through some people’s head. No matter how it is framed, there are always bad sides to economic inequality, but because of this fact it often makes it hard to see that economic inequality is such a critical factor economic inequality is in our lives.
Though economic inequality is infamous for its horrific effects on the human race, it is often overlooked as a driving force in the world. It helps our lives everyday by supporting things that are crucial to our modern existence. Economic inequality is behind our improvements in medical technology, it is a strong stimulant for new ideas and finally, it is a prominent factor in our economic system.
In our world today, we hear about the terrible effects of economic inequality all the time, and throughout the world, many people choose to look at economic inequality in a condescending manner. They fail to see they ways in which it contributes to the world. In our current world, economic inequality practically runs the world. Many decisions made today come out of the need for people make more money. Some people may look at this from a “half empty” perspective, but if you look at the “half full” version, it is actually a positive influence on growth and technology.
This technology advancement is not only prominent in many different factors that shape our world, as Tomas Friedman states in his book, The Lexus and the Olive Tree, “Thanks to the democratization of technology, we can all have a bank in our homes, an office in our homes, a newspaper in our homes, a bookstore in our homes, a brokerage firm in our homes, a factory in our homes, an investment firm in our homes, a school in our homes…” (Friedman 47). With out the pressure of economic inequality, the world would not get much done. Gary Becker, a well renowned economist and Nobel Prize winner explains in his blog, “For example, it would be hard to motivate the vast majority of individuals to exert much effort, including creative effort, if everyone had the same earnings, status, prestige, and other types of rewards. (Becker)’’
Another example is found in education. Every day you hear parents talking to their kids about their schooling. Motivators like, “It’s almost impossible to get a good paying job with out a college degree,” pushes kids everyday to get a higher education. Even from an early age, kids know that money is a functioning incentive, helping them to do their best. Another idea that Becker states in his blog would be, ‘’For example, many fewer individuals would engage in the hard work involved in finishing high school and going on to college if they did not expect their additional education to bring higher incomes, better health, more prestige, and better opportunities to marry. (Becker)’’
Another prominent factor in economic inequality is around luxury. While advanced learning and new technology are important, the subject that pushes most people to want more money is the “American Dream” of deluxe items. Having money takes away the stress of paying rent and allows people to focus on more fun relaxing things like yachts, nice cars, traveling, and ski trips. People always want to have fun and not worry about life, and economic inequality provides the drive for people to excel at pursuing luxury. One example of this would be the cell phone. In the year 1983, the first public cellphone was introduced into the world. From an interview of Martin Cooper, the inventor of the cell phone, I gained information that, “the phone then cost $3,900. So that would be like buying a phone today for $10,000.” (Cooper) Because the amount of money it cost, the cell phone became a strong symbol of economic prosperity. Every one wanted the newest, coolest phone as a way to show that they were important. Economic inequality pushes people to work and create new things as an incentive for luxury, without it the would be much fewer people actually contribution to the worlds economy.
Though economic inequality has its downsides, it should still be recognized for its positive roles in our modern day lives. It is the driving force of our world that pushes people to create new things. Without it our society could not function properly, as it currently does. It is important to remember how much our lives have been helped because of economic inequality. With this acutely precise social structure, humanity has come a long way is a very small amount of time.
Work Cited
Becker, Gary. "Bad and Good Inequality-Becker." Web log post. The Becker-Posner Blog. TypePad, 30 Jan. 2011. Web. 25 Feb. 2014.
Cooper, Martin. "Inventor of Cell Phone: We Knew Someday Everybody Would Have One." Interview. CNN Tech. CNN, n.d. Web. 10 Feb. 2014. <http://www.cnn.com/2010/TECH/mobile/07/09/cooper.cell.phone.inventor/>.
Friedman, Thomas L. "And the Walls Came Tumbling Down." The Lexus and the Olive Tree: Understanding Globalization. New York: Picador, 2012. 47. Print.