Getting Worse in the Distribution of Income - 539 Words

The studies have shown that 62 percent of the world population has a worsening in the distribution of income. Income distribution is one of the reason economist believe the Samuelsson model is still an hypothesis and have not been able to be proven as more of the world engages in trade. With there being different ways to measure distribution income most of the data collected is confusing to economist. Data from the World Bank show that 2.8 billion people live below the poverty line. Changes in income of the poor house can be changed by two variables first economic growth and distribution of income. According to the author there is growing recognition that distribution is important to poverty reduction as well as growth. Because of this gap in income distribution most economist cannot measure the effect globalization has on a country most country or rank twice with two different numbers making it hard for economist to measure the growth of a country. Samuelsson says that trade shoul d bring in income helping a country rise above poverty because globalization can be measured there no way to tell if globalization has a positive effect on country overall growth. If we take a look at Cross country studies presented by Harrison we see a different take on globalization. It takes a look at the relationship between poverty, inequality and globalization. Easterly finds that increasing trade integration is associated with Falling inequalities within developed countries and greaterShow MoreRelatedEssay Inequality of Wealth and Income Distribution in America1357 Words   |  6 PagesInequality of Wealth and Income Distribution in America Every American dreams of finding a job that pays well enough so that they may comfortably take care of their loved ones and themselves for years to come. Most Americans hope to find some way to make a living that they enjoy, something that they view as productive. Unfortunately, many do not have this luxury. 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