Hi, My name is McKenzie Everett and i will be discussing if i believe income inequality
has an impact on economic growth. It is no question that income inequality hurts
economic growth and that reducing income inequality would boost economic growth.
According to the Organisation for Economic Co-operation and Development or OECD,
“The single biggest impact on growth is the widening gap between the lower middle
class and poor households compared to the rest of society. Education is the key: a lack
of investment in education by the poor is the main factor behind inequality hurting
growth.” There is a lack of investment because there is a lack in funds to support its
growth. This causes the next generation to unknowingly be at a disadvantage that is not
in their hands such as not being able to pay for tuition. It is said that countries that
promote equal opportunity for all from an early age are those that will grow and prosper
and i believe that starting motivation young will be the solution to this issue. Another
issue other than just not having the funds, is that “People whose parents have low
levels of education see their educational outcomes deteriorate as income inequality
rises. By contrast, there is little or no effect on people with middle or high levels of
parental educational background.” according to the same article by OECD. Being a
student whose parents have only a high school education and work middle class jobs,
my education dreams were far more different than those in my class who were in the
upper class. I pay my way through school whereas my classmates parents pay thiers.
Which makes my point clear that Educational outcomes of individuals from richer
backgrounds, however, are not affected by inequality. Another issue brought up on an
article from weforum.org states that “Income inequality may be affected by countries’
GDP per capita as well as other variables related to deep-rooted differences in their
geography and history.” It is not something that we take pride in, but that the saying is
that history repeats itself over time and that income equality in 2015 has not been that
