Question

What role does corruption play in creating income inequality?

Answer 1

Answer-Corruption can be in any form like bribery, extortion of money, diverting public money. Corruption increases income inequality and poverty through lower economic growth in the country which will lead to an increase in unemployment level of peoples, a biased tax system which favoring rich class of the country and society, corruption in the social programs implemented by the government for social welfare, unequal distribution of education system, lower social spending these are the main role of corruption in creating income inequality

By the corruption in the system and economy, rich peoples are becoming richer and poor peoples are becoming poorer. In some countries like India, 99 % of public money is in the hand of 1 % peoples of the country.

Due to corruption in every stage, the cost of good and services also increases which result in inequality of income because expensive good and services cant be afforded by poor peoples only rich class of the society can use those good and services.