Is an unequal distribution of income and wealth a problem, Business Economics

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Is an unequal distribution of income and wealth a problem? Explain in short.

Yes: because specified no government intervention, which on very low incomes cannot afford necessary goods and services and therefore experience social exclusion. High inequality produces alienation, threatens social cohesion and encourages crime.

No: because low inequality implies minimal profits and minimal differences into incomes incentives are necessary to reward risk taking entrepreneurs and employees to undertake overtime and look for promotion. Wealth finally trickles down.


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