In an open and globalized economy and considering the financial markets influence, I ask for your collaboration, from a theoretical point of view, to propose economics postulates that can reduce social inequality and give better solutions to complex problems such as sustainable growth and the equitable distribution of wealth. Thank you in advance.
Sustainable development and their social and economic dimensions
Social development commitments are:
Eradicate absolute poverty by a date to be determined by each country.
Support full employment as one of the basic policy objectives.
Promote social integration based on the promotion and protection of all human rights.
Achieve equality and equity between women and men.
Accelerated development in Africa Least developed countries.
Ensure that social development goals are included in structural adjustment programs.
Creating an "economic, political, social, cultural and legal environment that enables people to achieve social development".
Enabling everyone to have equal access to education and primary health care.
Strengthening cooperation for social development through the United Nations
Economic development is generally defined as the process through which a comprehensive and sustained change occurs, accompanied by an increase in real average income, an improvement in income distribution for the poor, an improvement in the quality of life and a change in the structure of production. According to this definition, development contains a number of elements, the most important of which are:
Inclusiveness, development is a comprehensive change that involves not only economic, but also cultural, political and social.
The continuous increase in real income average long period of time, this suggests that development is a long-term process.
An improvement in the distribution of income in favor of the poor and the alleviation of poverty.
Need to improve the quality of goods and services provided to individuals
https://www.lebarmy.gov.lb/ar/content/%D8%A7%D9%84%D8%AA%D9%86%D9%85%D9%8A%D8%A9-%D8%A7%D9%84%D9%85%D8%B3%D8%AA%D8%AF%D8%A7%D9%85%D8%A9-%D9%88%D8%A3%D8%A8%D8%B9%D8%A7%D8%AF%D9%87%D8%A7-%D8%A7%D9%84%D8%A7%D8%AC%D8%AA%D9%85%D8%A7%D8%B9%D9%8A%D8%A9-%D9%88%D8%A7%D9%84%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%D9%8A%D8%A9-%D9%88%D8%A7%D9%84%D8%A8%D9%8A%D8%A6%D9%8A%D8%A9
An interesting issue. As I have commented before, the current vogue, capitalism, is a brilliant invention that remorseless transfers wealth from the poor to the rich while pretending to do exactly the opposite. You have to find a way of rewarding socially useful (in both short AND long terms) processes without setting up an 'open ended' system which goes on rewarding, in principle, indefinitely. There is an interesting analogy in consmology where 'wealth' is 'mass' and black holes go on accreting mass indefinitely once they are created; there is a similar saying that 'money makes money'. Similar principle. The current mechanism for providing such limitations in the real world, some form of 'taxation', or diversion of funds in the private sector to the public sector, simply doesn't work.
Here are my ideas on ways to 'reduce social inequality':
1. Encourage young people in lower income brackets to:
a. attend formal education
b. work hard and have a good work ethic
c. break the cycle of generational poverty
d. set personal goals (short-term & long-term)
2. Set time limits on government aid.
3. Require drug testing for people who receive government aid
I think the food companies can donate some of their nearly expired goods to more charitable organisations or even better, have their own soup kitchens or partner with the organisations who run them to feed poor families and persons living on a very small income (e.g., retirees).
Many thanks,
Debra
Sustainable development and their social and economic dimensions
Social development commitments are:
Eradicate absolute poverty by a date to be determined by each country.
Support full employment as one of the basic policy objectives.
Promote social integration based on the promotion and protection of all human rights.
Achieve equality and equity between women and men.
Accelerated development in Africa Least developed countries.
Ensure that social development goals are included in structural adjustment programs.
Creating an "economic, political, social, cultural and legal environment that enables people to achieve social development".
Enabling everyone to have equal access to education and primary health care.
Strengthening cooperation for social development through the United Nations
Economic development is generally defined as the process through which a comprehensive and sustained change occurs, accompanied by an increase in real average income, an improvement in income distribution for the poor, an improvement in the quality of life and a change in the structure of production. According to this definition, development contains a number of elements, the most important of which are:
Inclusiveness, development is a comprehensive change that involves not only economic, but also cultural, political and social.
The continuous increase in real income average long period of time, this suggests that development is a long-term process.
An improvement in the distribution of income in favor of the poor and the alleviation of poverty.
Need to improve the quality of goods and services provided to individuals
https://www.lebarmy.gov.lb/ar/content/%D8%A7%D9%84%D8%AA%D9%86%D9%85%D9%8A%D8%A9-%D8%A7%D9%84%D9%85%D8%B3%D8%AA%D8%AF%D8%A7%D9%85%D8%A9-%D9%88%D8%A3%D8%A8%D8%B9%D8%A7%D8%AF%D9%87%D8%A7-%D8%A7%D9%84%D8%A7%D8%AC%D8%AA%D9%85%D8%A7%D8%B9%D9%8A%D8%A9-%D9%88%D8%A7%D9%84%D8%A7%D9%82%D8%AA%D8%B5%D8%A7%D8%AF%D9%8A%D8%A9-%D9%88%D8%A7%D9%84%D8%A8%D9%8A%D8%A6%D9%8A%D8%A9
Preaching wealth distribution and redistribution can go on and on but can we please have equal ability for management of wealth? Wealth distribution can not work where we have different ability in managing wealth.
I utterly agree with Dr. Paul Stock' s submission on this burning issue.
While the wish list by @dr.stock is comprehensive the questiòn is how to generate resources in the cùrrent debt laden world? @tony maine has alluded to this dilemma. Unless structural & political rigidities in the taxation system are addressed social inequities will continue to haunt us. rightfully suggested structural
I think governments took the wrong path by following "race to the bottom" neoliberal policies aiming to gain comparative advantage against other countries by consistently reducing benefits to labor. Therefore in order to correct such established trend, countries practicing such policies would have to reverse these policies, since this constitutes unfair competition.
An International institution that could officially examine and try to resolve this huge issue is the WTO. However in order to begin the process it requires political will. Some countries that for many years have established fair income and wealth distribution (for example Scandinavian countries) can be an example to follow. If such process begins it will be difficult to prove which countries practice unfair competition. WTO will have to hire economists accountants and so forth to carefully analyze costs of production and point out countries and companies that practice unfair competition by supressing labor benefits. A comparison of real wages with labor productivity would be the rule to determine if workers are
indeed exploited. Countries that complain for unfair trade practices can initiate additional criteria of labor practices to determine fair trade. A more fair trade will contribute to more fair income and wealth distribution wiithin nd between countries.
Recognize education through university and medical care as basic human rights. Follow the Universal Declaration of Human Rights. Institute progressive taxation.
Some answers from my esteemed colleagues suggest taxation as one method for wealth redistribution. I am extremely skeptical; in my view it just doesn't work. The really wealthy can exploit too many loopholes and avoid (evade) taxes. Some possibly useful modifications to capitalism might include the 19th century paradigm that makes a commercial entity largely equivalent to a natural person. It clearly isn't. Only natural persons should be able to hold shares in commercial entities for example. Another possibility are transaction (Tobin) taxes and turnover taxes where a company is taxed on its turnover and not profit. I would welcome more suggestions along these lines. But a return to classical socialism clearly isn't on. Nobody has managed to make it work - human nature seems to be against it.
Following Polanyi, make the market a dependent part of society, not the other way round. Following Marx, find feasible ways to expropriate the expropriators...
to reduce inequality and take effective economic policy measures, the first thing that has to be done in a diagnosis of the problem, identifying the root of the problem
A hypothesis could be unemployment as drivery of overall inequality d within and across generations
Robert Reich, Berkeley prof, former Secretary of Labor. Co-Founder Inequality ,
answered this question
Q: What measures will you recommend to the incoming president to implement a fair and sustainable income and wealth distribution?
A: Expand the Earned Income Tax Credit — a wage supplement for lower-income people, and finance it with a higher marginal income tax on the top five percent. For the longer term, invest in education for lower income communities, starting with early-childhood education and extending all the way up to better access to post-secondary education. Source: link http://freakonomics.com/2008/05/01/robert-reich-answers-your-labor-questions/
Thank you very much for the contributions of each one of you. All the answers are very interesting and try to add value to an always complex question that can be approached from different points of view.
A progressive tax works in the social democratic countries, such as those in Scandanavia and other parts of Europe, where university education and health care are provided to the population.
The expropriation of the expropriators was once suggested as the required remedy. Failing that, the Scandinavian model of pre-neoliberal times, combined with the housing policies of Red Vienna could be a good start.
A hope for more fair income and wealth distribution can come from the voters in countries, this will happen when they become disichanted with governments and parties that adopt pro- business, anti-labor policies.
This approach is known a political business cycles theory and it has been empirically observed in many democracies in the world where political parties rotate in government according to their economic performance. However, the duration of a political party in government i.e.. the duration of the political business cycle cannot be accurately predicted.
Professor Robert Reich's proposal is interesting, since he says that to reverse the increase inequality, however recommendations is for American Economy
1) Make work pay.
2) Unionize low-wage workers
3) Invest in education.
4) Invest in infrastructure.
5) Pay for these investments with higher taxes on the wealthy.
6) Make the payroll tax progressive.
7) Raise the estate tax and eliminate the “stepped-up basis” for determining capital gains at death.
8) Constrain Wall Street.
9) Give all Americans a share in future economic gains.
10) Get big money out of politics.
There is growing consensus that economic growth is not sufficient to reduce inequality, however employment is key element that could reduce it.
Also with robotics more jobs will be lost. Restore how to reduce inequality I share this information about it: " It is well documented that income inequality is on the rise, with the richest 10 percent earning up to 40 percent of total global income. The poorest 10 percent earn only between 2 and 7 percent of total global income. In developing countries, inequality has increased by 11 percent if we take into account the growth of population" Source: Sustainable Development Goals Fund
"Income inequality is a global problem that requires global solutions. This involves improving the regulation and monitoring of financial markets and institutions, encouraging development assistance and foreign direct investment to regions where the need is greatest. Facilitating the safe migration and mobility of people is also key to bridging the widening divide".
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