Domestic Economy

Repercussions of Income Inequality

Repercussions of Income Inequality
Repercussions of Income Inequality

The reduction or elimination of poverty, inequality and unemployment is the main goal of development, which individually have a clear correlation. 
Easing inequality is desirable, yet low inequality is not synonymous with a suitable livelihood and welfare. A comprehensive welfare would be achieved only when per capita income increases and inequality decreases simultaneously. Therefore, in the absence of high per capita income, low inequality implies the poverty of all individuals and households. That’s why policymakers should improve national production and income while reducing inequality, otherwise the improvement of welfare won’t materialize. 
Morteza Afqeh, an economist, prefaced his article for the Persian-language economic daily Donya-e-Eqtesad with this note. 
A translation of the article follows:


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