Global economics focusing on the international spread of capitalism across national boundaries has been keeping this world going; especially over the last few decades. Global economics allows us to connect all of the world’s economies together, thus being able to assess things within our own economy with a better sense of clarity.
Unfortunately, following the economic downturn things got even worse for the lower waged citizenry. As the bottom income earners income was increasing at a rate of 1.4% annually, the top tier of income earners annual income increase falls slightly over 2 percent. Ever heard the saying, ‘The Rich get Richer’? Well that is the complete and honest truth! The largest amounts of wealth are increasingly concentrated into the hands of the already wealthy; once again perpetuating the enormous difference in income status for these respective groups.
How does inequality affect the global economy?
Our Global economy is being affected greatly by the income inequality that is seen not only in America, but in other countries across the globe as well. The system is wrought with predatory lending, abusive credit card practices, and interest rates that will break you. With such a large gap in what people are earning, things are becoming accessible to some that others may not be able to afford. This slows the demand and causes the income of other countries that are being used as suppliers of the goods to fluctuate.
A downturn in the economy is, in itself, a terrible thing to experience even if you have back up finances. Once you put it on the spectrum, focusing on not just our economy but the economy that is connected throughout the entire world; you can see the impact that it can have on the global economy as a whole. To improve things around the world, every country needs to find ways to make the gap in income equality shorten.
Driving global economy
There are countless ways to drive an increase in the global economy but the most important is to build a fairer earning platform for everyone. In addition; buying from and selling to other countries can cause not only a boost in currency exchange, but also in confidence between the respective countries. A trusting relationship can go a long way towards building a better global economy.