Arguments against inequality
- It may lead to low revenue of the taxation where the majority of the, people are poor and cannot be taxed.
- Brain drain is encouraged which leads to loss of skilled labour from a country.
- Regional inequality promote rural urban migration.
- May led to misallocation of resources as most productive resources may be channed in the demand at the expense of the poor masses going without the basic cheap essential.
- Social tension and strife develop as a result of disparity that exist between the poor and the rich.
- Where money is in a few hands public participation is hindered it creates psychological disincentive among the poor who will be hesitant to participation in production.
- Where the incomes is in a few hands ie, low aggregate demand marginal propensity to consume among the rich people is low and this may discourage investment.
- It leads to over dependence of the poor on the rich and thus the problems of dependency burden is aggregated.
- There is exploitation of the poor by the rich i he rich enjoy the services of the poor at unreasonable poor are rather disperate and need the basic of survival.
- Government planning becomes difficult- inequality in society create a number of economic and social classes with diverse needs.
- Social evils such as theft, burglary, prostitution etc are aggravated which involves high costs in their eradication.
- It maintains a viscious cycle of poverty. This is a situation when the poor are bound to remain poor They will remain with low incomes low savings and investments .
- Create a situation of apathy among the people and thus creates laziness and lack of initiative to engaged in production among the poor.
- Inequality reduces economic welfare of other people
- The rich always prefer to invest in other countries which accelerates the rate capital flight.