Question

is rising inequality due to automation inevitable? role of

government?

The topic is about globalization inequality. Please type the answer about 300-400 words. Thanks

Answer 1

Corporations are institutionally arranged in such a way that rises of corporations give birth to income or wealth inequality. When corporations experience growth their share is distributed among the stake holders. So one set of stake holders suddenly become wealthier than the rest of the economy when a corporation makes huge profits. The income generated by people working in corporations is enjoyed by only a small section of society. The majority of unskilled, working in primary sectors remains with stagnant income. The profits made by corporations do not get distributed to the people from whom a corporation might buy its raw materials but gets shared among its stake holders. So the opportunity to create inequality is ingrained in corporations. So if corporations alone develop in an economy then inequality is ought to rise. Development of primary sector and other sectors is also necessary.

Government can control inequality by capping the growth of corporations or by simultaneously developing other sectors. Inequality can he bridged by three methods either by pulling down the incomes of the very rice or by giving a push to the incomes of very poor or efficiency equitable distribution of total income generated in the economy. So in this scenario corporate taxes and taxes on income of share holders can assure equitable distribution of income. Higher rate of marginal taxes keep a check on incomes of the very rich.

Government wills enjoy following benefits due to automation:-

1.   Optimized workflows and efficiency

2.   Cost containment and savings

3.   Improved worker morale

4.   Reliable compliance