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LATEST NEWS UPDATES | Why Economic Inequality is a Burning Issue that Needs Attention -Atman Shah and Dipak Chaudhari

Why Economic Inequality is a Burning Issue that Needs Attention -Atman Shah and Dipak Chaudhari

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published Published on Oct 22, 2022   modified Modified on Oct 25, 2022

-Newsclick.in

Inequality is not natural but manufactured. It’s time policymakers stopped normalising the wealth and income gap. Else, post-Covid inequality could become a permanent feature.

Wealth and income inequality are more than just economic concepts. They also influence education and health outcomes, poverty levels, employment and unemployment rates, opportunities, choices, and, ultimately, happiness. Of late, several reports have investigated the impact of COVID-19 on various segments of society at the regional, national, and international levels. They demonstrate how restrictions and lockdowns during the pandemic exacerbated pre-existing income and wealth disparities.

A new report by Oxfam and the Development Finance Institution (DFI) has revealed that most governments failed to take necessary steps to combat the explosion of inequality caused by COVID-19. Sometimes, governments ripped away public services when people needed them most. Others let billionaires and big corporations off the hook to reap record profits.

The situation demands an integrated and inclusive public policy to help the vulnerable cope. The Oxfam-DFI report and global ranking—2022 Action to Reduce Inequality (CRI) Index—based on what governments did to reduce the poor-rich gap could be a starting point. It is the first in-depth analysis of official policies and actions to address the inequality that reviews spending, taxation policies and labour policies and actions for the first two pandemic years from 2020 to 2022 in 161 countries.

The CRI 2022 says 70% of countries reduced their share of education spending, while two-thirds failed to raise the minimum wage based on the gross domestic product (GDP). Further, 95% of countries did not increase taxes on the wealthiest people and businesses.

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Newsclick.in, 22 October, 2022, https://www.newsclick.in/Economic-Inequality-Burning-Issue-Needs-Attention


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