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?

The gap in the economic disparity between the high and the low-income groups is growing

further

.

This

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

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

difficult economic climate, their salaries rise does not catch up with the inflation,

thus

their affordability becomes low as prices are hiking.

Moreover

, with these slow employment rates, it is getting difficult to land a job. People may have no choice but to fulfil their needs,

hence

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

mass layoffs and growing bills. To tackle

this

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

, the US government implemented a tax reduction for companies, whose initial figure was 35% and

then

reduced to 22%.

This

measure was taken to motivate the corporations to reinvest their money into product development and salary increases.

Therefore

, 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

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

earning gap, the authority should interfere by imposing laws to support businesses and eventually increase the workers’ paychecks.