Insights into Income Inequality 1. Review the assigned readings at the links listed below. Select those most appropriate to this writing assessment. Additional readings are not required, but can be done if desired. 2. Write an analysis of Income Inequality based on the readings and the points below. a. What data suggest that income inequality is a current problem? What statistics describe the U.S.? What statistics describe other countries? b. What data suggest that income inequality is not a current problem? What statistics describe the U.S.? What statistics describe other countries? c. Discuss the studies that link poverty to income inequality and those that do not. d. Determine if the readings support: (1) a link between innovation and SMEs (Small to Medium Sized Enterprises); (2) a link between SMEs in a country and an increase in its economic growth; and (3) a link between economic growth and a reduction in poverty, which is a global concern. BACKGROUND: Income Inequality is a subject capturing the attention of academicians, policy makers, business people, and the general population across the globe. Numerous reports cite a growing gap between wealthy and poor in America and across the globe. One report from the Economic Policy Institute stated that between 1979 and 2007 the bottom 99% of households in the U.S. experienced an average income growth of 18.9%, while the top 1% of households experienced a much higher income growth of 200.5% (Sommelier & Price, 2015). The report cites broad-based income declines across the country in 2008, followed by income recovery characterized by the richest households recovering more than others, which led to measures of income inequality in 2012 that nearly matched levels last seen near the Great Depression. A survey of the literature indicates an absence of agreement on the single cause of income inequality, whether the issue is studied in the U.S. or globally, and a lack of agreement on how to measure income inequality, poverty and related data. Nonetheless, domestic and global institutions involved in such research increasingly call income inequality one of the major socioeconomic questions for this century. READINGS: Select those most appropriate for the assignment, especially about Innovation, SMEs, Economic Growth, and Reducing Poverty. 1. Articles on MBAs and MBA Alums Studying Income Inequality a. http://admissions.sg/blog/wsj-mbas-get-lessons-in-income-inequality/ b. http://fortune.com/2015/09/09/income-inequality-harvard/ 2. Article Suggests Income Inequality Stems from Gap in Profitability at Employers http://www.wsj.com/articles/behind-rising-inequality-more-unequal-companies-1446665769 3. Article on 2015 Nobel Prize Winner in Economics cites Applications for Income Inequality http://www.ibtimes.com/who-angus-deaton-how-nobel-economics-prize-winners-income-inequality-research-2137557 4. Article states Global Reasons for Studying Income Inequality https://www.imf.org/external/pubs/ft/sdn/2015/sdn1513.pdf 5. Article states National and International Reasons for Studying Income Inequality http://www.pewresearch.org/fact-tank/2014/12/17/wealth-gap-upper-middle-income/ 6. Article on National Income Inequality www.nber.org/digest/dec08/w13982.html 7. Article Dispels Income Inequality www.forbes.com/sites/jeffreydorfman/2014/05/08/dispelling-myths-about-income-inequality/ 8. Article Suggests Income Inequality Does not Exist, followed by link to Replies on that Article a. http://www.scientificamerican.com/article/the-american-dream-of-income-equality-still-lives/ b. http://www.scientificamerican.com/article/readers-respond-to-the-myth-of-income-inequality/ 9. http://ejpe.org/pdf/7-2-art-4.pdf Erasmus Journal for Philosophy and Economics, Volume 7, Issue 2, Autumn 2014, pp. 73-115. Measured, unmeasured, mismeasured, and unjustified pessimism: a review essay of Thomas Pikettyâ€™s Capital in the t
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