Forget closing the gap between the rich and the poor….

Close the gap between the stinking rich and the just plain normal!

Don't get me started...! (courtesy of BBC website although now seems to be deleted)

The increase of globalisation, that is, the rate at which trade and resources cross-national borders has increased significantly over recent years. This increase led to economic growth but it did not quite take the shape that governments and economists expected. There was an initial belief that globalisation will close the gap between rich and poor nations, a belief that has not materialised. Poor nations have not benefited in the way that they were set out to, perhaps because economic growth as focused on the economic issues and less on the political issues. However, what appears to be accelerating at an even more alarming rate is not the disparity between economies but the disparity within economies as illustrated above. The gap gets wider with civil servants and professionals e.g. nurses, teachers, engineers, scientists and artists getting the shorter end of the stick. Will higher taxes for higher earners mitigate this gap or will society just get more resentful of it? It’s probably easier to ignore the country next door with more economic opportunities than to ignore those living next door, earning almost 100 times more than you. Now I wonder whether to encourage my son to study engineering or whether to allow him play football and go pro. Hmm- I couldn’t in good conscience deprive him of a (normal?) career.

One question on the minds of many economists is: Is globalisation reversible? It seems almost impossible from a technological standpoint for globalisation to reverse but politically and socially, wide gaps like this could make or break globalisation. Countries like Egypt and Tunisia may be the ones to watch. Time will surely tell.

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