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Income inequality is a measurement of the distribution of wealth across households

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Essex County ColllegeEconomic 102 Section 001Spring 2016Income Inequality in Latin AmericaByStephania BreauDavid DuretMaria FernandezTalayna BrownDaniel BarkerProfessor Jean-Wilner Alexandre
How do you define an economy exactly? Most people say that it is the wealth andresources of a country or region, especially in terms of the production and consumptionof goods and services. Building a good economy includes the need to be able to carefullymanage available resources and make products for the community. In the process ofaccomplishing this, there will be certain conflicts that may slow the economy down. Thiscan prove how strong the economy really is. Some of these obstacles include, IncomeInequality, Poverty and Discrimination, and they are big issues that people deal with allover the world.Income Inequality is known as the extent to which income is distributed in anuneven manner among a population. This is one of the biggest challenges faced by manycountries all over the world. There are wealthy and poor people everywhere around theworld.In developed and developing countries alike, it is believed that the poorest half ofthe population often controls less than 10% of its wealth. There are many effects thatcause income inequality to grow. One of those reasons is the fact that wages aredetermined by labor market. If there are a large number of people who have a certain skillto perform a job, the amount of income they make is extremely lower than that of workeramong a small group of people who have that skill. Another reason can be that educationplays a big role in wages.With a higher level of education, it is very common that aperson has more advanced skills that few workers are able to offer, qualifying a higherwage. In addition, technology also plays a big role in income inequality. There are manyjobs out there that people used to perform, but they are now replaced by computers, andleft jobless as a result. Many people believe that there is inequality of opportunity in theworld, and it spreads to gender, ethnicity, disability, and age, among others.
Poverty is described as the state of one who lacks a usual or socially acceptableamount of money or material possessions. This prevents one from getting the basicnecessities of life including food, shelter, and medical care. There are so many peopledealing with this issue. There are also various reasons why it may take place. It has beenstated that “he percent of the world’s population below the poverty line has increasedrapidly since 1987, reaching 52% in 2008” (Ruoff). One of these causes is low payingjobs. Some people still fall under the poverty line even though they work, and some ofthem work all the time. Some of the poor people are older and their reason for living thislifestyle is often recognized to be retirement or disabilities. There are many people outthere who are struggling to find jobs or unable to work due to a disability. Also, people

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