DAN

Although I believe that there is no place for poverty and some other aspects of inequality within the UK and elsewhere, I do believe that some aspects of inequality should be present; such as income inequality (to some extent). I believe this, because people who have gone through years of education, degrees, PHD and other forms of education and training; only go through that in order to get jobs that require highly skilled individuals, thus earning a higher wage for supplying their labour in that role. If the incentive of earning a higher wage is lost, then people will no longer become a doctors or and engineers for example. This would result in a loss of economic welfare, as the higher paid roles that bring positive externalities will no longer be provided to a high standard. In addition to this, more people may drop out of the labour market and start claiming jobseekers allowance, as they feel that they are not being fully rewarded for the job that they are carrying out.

Although there is already a progressive direct tax on income, I do not believe that the current tax bands are fully achieving their purpose, and as I mentioned earlier that I agree with income inequality to some extent; the richest one percent of people in the UK, own more than 20 times more wealth than the poorest 20 percent combined. This clearly must be addressed and with the rich becoming richer through investments to increase their wealth even further, it seems that there is no altering this ever growing issue.

I do think that people of a higher income have a duty to be concerned about the issue of inequality, as there is a direct link between inequality and crime rates. When people of a higher income are the people being stolen from and having to endure drug abuse etc, surely it is their duty to want to improve the current situation. They can address and improve the situation through donating to charity, as well as other methods of reducing inequality.