Differences in Economic: Rich and Poor

Economic inequality is the difference found in various measures of economic well-being among individual in a group,among groups in population, or among countries.Economic inequality is sometimes called income inequality,wealth inequality or the wealth gap. 

Economic inequality varies between societies, historical periods, economic structures and systems. The term can refer to cross-sectional distribution of income or wealth at any particular period, or to changes of income and wealth over longer periods of time. There are various numerical indices for measuring economic inequality. A widely used index is the Gini coefficient, but there are also many other methods.

Some studies say economic inequality is a social problem. E.g., too much inequality can be destructive, because it might hinder long term growth. Too much income equality is also destructive since it decreases the incentive for productivity and the desire to take-on risks and create wealth

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Economic condition around the developing countries.

In this world most of the people are poor and some can afford their daily life and some are ridiculously wealthy.We have Rich and Poor because you earn money based on what you can do for someone else that they find valuable. The ability to do that is not equally distributed throughout the population. 

Governments routinely take money from the rich and spread it out among the rest so that we'r all even and no one suffers. Unfortunately when you penalize something you get less of it. When you subsidize it, you get more of it. So what you get when you do that is less valuable production and more people who get paid for doing nothing.

If you read history, for the last 2500 years people have periodically had revolutions and tried to redistribute the wealth. It doesn't work. If the people who work harder don't get paid more, they stop working harder. Everybody works as little as possible, and the economy goes down hill. They tried it in Ancient Greece; they tried it in Russia; it never worked. 

Almost all the other countries tax the rich more than we tax the poor, and we partially redistribute the wealth. This system works better. The wealthy pay most of the taxes in this country, despite claims to the contrary.But still in most of the developing countries the rich are getting richer and the poor are getting even poorer.but what'st the main reason behind this ? this might be due to unequal distribution of resources, improper use of available resources or not paying taxes to the government (black money) or illegal businesses,or  even due to selfishness and  ignorance of the government. Why is most of the people have to work daily for their daily meals and why people of Africa are suffering due to illness, starvation, malnutrition etc.

   Though the God has created us all equal why does some are starving and some are  getting the standard living.Many of us are still under the line of poverty due to the political crisis, lack of education,due to war.

Why People are poor?

• Abuse by those in power
• Dis-empowering institutions
• Excluded locations
• Gender relationships
• Lack of security
• Limited capabilities
• Physical limitations
• Precarious livelihoods
• Problems in social relationships
• Weak community organizations
• Discrimination

One third of deaths – some 18 million people a year or 50,000 per day – are due to poverty-related. People of color, women and children, are over represented among the global poor and these effects of severe poverty. Those living in poverty suffer disproportionately from hunger or even starvation and disease. Those living in poverty suffer lower life expectancy. According to The World Health Organization, hunger and malnutrition are the single gravest threats to the world's public health and malnutrition is by far the biggest contributor to child mortality, present in half of all cases.Almost 90% of maternal deaths during childbirth occur in Asia and sub-Saharan Africa, compared to less than 1% in the developed world. Those who live in poverty have also been shown to have a far greater likelihood of having or incurring a disability within their lifetime. Infectious diseases such as malaria and tuberculosis can perpetuate poverty by diverting health and economic resources from investment and productivity; malaria decreases GDP growth by up to 1.3% in some developing nations and AIDS decreases African growth by 0.3–1.5% annually.Infectious diseases continue to blight the lives of the poor across the world. An estimated 40 million people are living with HIV/AIDS, with 3 million deaths in 2004. Every year there are 350–500 million cases of malaria, with 1 million fatalities: Africa accounts for 90 percent of malarial deaths and African children account for over 80 percent of malaria victims worldwide.In fact even I was in battling with disease in a hospital when I was 18 years old.

Rises in the costs of living making poor people less able to afford items. Poor people spend a greater portion of their budgets on food than richer people. As a result, poor households and those near the poverty threshold can be particularly vulnerable to increases in food prices. For example, in late 2007 increases in the price of grains led to food riots in some countries. The World Bank warned that 100 million people were at risk of sinking deeper into poverty. Threats to the supply of food may also be caused by drought and the water crisis. Intensive farming often leads to a vicious cycle of exhaustion of soil fertility and decline of agricultural yields. Approximately 40% of the world's agricultural land is seriously degraded. In Africa, if current trends of soil degradation continue, the continent might be able to feed just 25% of its population by 2025, according to United Nations University's Ghana-based Institute for Natural Resources in Africa. Every year nearly 11 million children living in poverty die before their fifth birthday. 1.02 billion people go to bed hungry every night.

According to the Global Hunger Index, Sub-Saharan Africa had the highest child malnutrition rate of the world's regions over the 2001-2006 period.

But we can all change this by properly utilizing the resources (i.e food,fuels) we have.Even today people are sleeping on the streets with their stomach half filled, therefore we should all admire the food we are getting and the facilities we have.