Income Inequality and Economic Growth Essay Example | Topics and Well Written Essays - 250 words

Income Inequality and Economic Growth - Essay Example In an attempt to achieve income equality, there are various approaches that may be applicable. One is the redistribution of income through progressive tax regimes where the rich are heavily taxed and the poor are exempted from taxation, thus, increasing their disposable income. Another way may be to invest in activities that create employment and wealth for the poor such as infrastructural development and education (Alam 46). Another way to promote equality is by encouraging high-income earners to invest their excess incomes in projects that create employment for low-income earners. This can be achievable by making luxury items unattractive to buy and making investment opportunities very attractive. It is imperative to assert that attainment of equality is never free. Therefore, the opportunity cost of enjoying luxurious items or investing in other sectors should not provide incentives for the low-income earners. Economies should aim to reduce the economic burden on the poor through income redistribution, which eventually leads to