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From course:

Economics A Level (DONEEEEEEE)

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Question:

What is the Conflict between Economic Growth and Wealth Inequality

Author: eric_galvao



Answer:

-Economic Growth will Increase Inequality. Higher skilled Workers will be more in Demand meaning Higher Wage, while Lower Skilled workers will not get Higher Wages. -Governments may use the Increased Tax Revenue from Econ Growth for: Welfare Payments, Progressive Taxes or Minimal Wage. But this can create Disincentives to work hard, and More Welfare Payments may discourage Working [Some can Help] -Supply-side can help People to go to Work, Lower Labour Immobility, Encourage Growth and reduce the Welfare Budget


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