All over the world, the rich are becoming richer and the poor are becoming poorer. What problems does this cause? How can we overcome the problems of poverty?

Nowadays, it is quite noticeable that the socio-economic gap between the wealthy and the destitute is increasing which will result in many deteriorating impacts on the country's economy like inflation percentage hikes and uncontrollable crimes. These damaging effects can only be controlled by the timely intervention of the government by implementing rigid tax laws and the provision of free benefits to the needy. To embark with, widened financial gaps will undoubtedly spike the country's inflation rate and

this

will make it more difficult for the under-privileged to survive. To exemplify, there are diverse social classes in India and

this

has contributed to a high inflation percentage of 5% compared to an average global rate of 1%.

Furthermore

, it is evident that the unevenly distributed wealth resulted in elevating criminal activities ,especially in these developing countries. To explain

further

, many educated youngsters started committing robbery to loot from the elites as they are finding it difficult to manage the never-ending needs of their families which in turn hinders the overall progress of the nation. The above-mentioned problems can be resolved to a great extent with regular support from the regulators .

Firstly

, they can introduce new laws to incorporate higher tax percentages for the high-income generators with a clause to claim reductions if charitable contributions are made. To be more clear,

this

rule will encourage many high tax-payers to initiate many charity services in order to claim exemption and that in turn will benefit the less fortunate.

In addition

, authorities can implement many subsidiary programs like the provision of free houses, elderly allowances, education scholarships and unlimited access to healthcare which can slowly diminish

this

economic condition. To conclude , it is undeniable that the majority of the global resources are accumulated with a certain fraction of the population.

This

has contributed to many detrimental impacts on the boom and crime rate which can only be controlled with the succoured support from the government in the form of introducing tight tax laws and provision of government subsidiaries.