Income Inequality

There are a rule about the inequality in the world and that rule call the Pareto Principle. By the definition, for many phenomena, 20% of invested input is responsible for 80% of the results obtained. Put another way, 80% of consequences stem from 20% of the causes. This is because of the income inequality.

Income inequality is the unequal distribution of household or individual income across the various participants in an economy. The aspects of rising inequality that are usually discussed separately: changes in labor's share of income; inequality at the bottom of the income distribution, including labor mobility; skill-biased technical change; inequality among high income groups; consumption inequality; geographical inequality; and international differences in the income distribution, particularly at the top.

Some solution to this problem provided by the expert are:
- Straighten and strengthen the legal framework to prevent abuses.
- Market forces should be shaped, not left as “forces.” Other countries shaped their market forces in ways that have lowered inequality while creating more opportunity and growth.
- Take care of the young, as they are our most valuable resource. Countries far poorer than the U.S. have decided that all young people should have access to food, education and health care so they can fulfill their aspirations.
- Better taxation system.