The gap between the rich and the poor is becoming wider; the rich are becoming richer and the poor are even getting poorer. What problems can the situation cause? What can be done to reduce this gap?

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The gap in the economic disparity between the high and the low-income groups is growing
further
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.
This
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predicament can cause people whose paycheck is lower than the standard minimum wage to be trapped in structural poverty and there are increasing amounts of criminalities. To address
this
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problem, the government should interfere by creating rules that support the welfare of workers. The wide gap in economic inequality puts lower-income residents at risk and it will be difficult for them to escape poverty. The underpaid people are facing difficulties in meeting their livelihood. They are overworked solely to acquire minimum salaries. During
this
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difficult economic climate, their salaries rise does not catch up with the inflation,
thus
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their affordability becomes low as prices are hiking.
Moreover
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, with these slow employment rates, it is getting difficult to land a job. People may have no choice but to fulfil their needs,
hence
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they perform robberies to buy meals for their families. The number of criminal cases increases as unemployment rises. Take into account, that during COVID-19, in Malika City, the number of criminality was growing
due to
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mass layoffs and growing bills. To tackle
this
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problem, the government should incentivise companies' growth and ensure the welfare of the workers. The authority can impose a regulation to support employers’ businesses and make sure that the employees get more benefits.
For instance
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, the US government implemented a tax reduction for companies, whose initial figure was 35% and
then
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reduced to 22%.
This
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measure was taken to motivate the corporations to reinvest their money into product development and salary increases.
Therefore
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, people’s income increased and they could afford more of their necessities. In conclusion, the inequality between the high-earning group versus the lower-earning group is widening,
this
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situation can cause the inability to escape from the poverty trap and the number of criminal cases is rising. In a way to address
this
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earning gap, the authority should interfere by imposing laws to support businesses and eventually increase the workers’ paychecks.
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Topic Vocabulary:
  • economic disparity
  • crime rates
  • wealth inequality
  • social segregation
  • education gap
  • affluent
  • mortality rates
  • uneven access
  • hopelessness
  • disenfranchisement
  • progressive taxation
  • redistribute
  • quality education
  • social programs
  • economic disadvantage
  • higher wages
  • entrepreneurship
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