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What is the right level of inequality

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Inequality exists because (economic arguments):

1) It encourages those with talents to develop that talent, to the benefit of all.

2) Encourages economic efficiency by encouraging people to take risk and invest, potentially gaining more than just working for someone else.

Inequality: difference in statuses

What is the right level of inequality?

The standard of the right level of inequality is to ensure that the Middle or Upper Class have the incentives to take risks such as making investment in pursuing more wealth, but at the same time the Lower Class should not suffer from extreme poverty, so the government should provide them adequate compensations and aids to help them to sustain their lives.

Only in such level of inequality, we can consider it as the right level of inequality, balancing both sides of needs, and does not ignore the bottom class.

Reference no: EM132175649

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