Question

You are going to write an essay on the policies to reduce income inequality and poverty. You will explain the content of these policies and make a comparative assessment.

Answer 1

Reducing inequality and poverty are vital objectives of macro-economic . The bigger income gap between the poor and rich has highlighted the requirement to understand the causes of relative inequality and poverty, and to construct ways/strategies to reduce poverty and narrow the equality gap in society.

--Increase access to high-quality preschool: The kids who attend high-quality preschools have positive outcomes throughout their lifetime; and not only in the lives of kinds for United States including long-term educational, social, and economic gains, from increased earnings and tax revenues to breaking the cycle of income inequality

--Expand apprenticeships: Expansion of apprenticeships benefit workers by connecting them with a paid job, improving their lifetime wages, and offering a postsecondary education with almost very little or no debt. At the same time, employers who sponsor apprentices benefits from the skilled workers, decreasing employee turnover, and increasing productivity. As a result will reduce income inequality

--Improve retirement security: The Secure Retirement Plan can automatically enrol workers in a collective defined-contribution plan, offering low fees and professional fund management, collectively pool participants’ assets, and as a result turn such assets into lifetime payments in retirement at a low cost. In the long run it helps in reducing the income inequality.

-- Progressive Income Tax: Progressive taxes are those that apply as higher tax rate to higher income; and regressive taxes are inversely proportional to income thus results in reducing the income inequality.

-- Global Wealth Tax: A well-designed and fair wealth taxes would go a long wayin reducing the inequality.

-- Build assets for working families: The strategies that encourage higher savings rates and lower the cost of building assets for poor and middle class households can give better economic security for struggling families in society

--Open and Democratic Trade Policy: An open trade policy is beneficial to consumers thus helps in reducing the inequality