Create a 6 pages page paper that discusses earnings and income inequality across borders. Due to the difference in income and earnings potentiality, there should be a chance that it will affect the overall economic impact of the nation also. Besides, there is a close relation between income inequality and the impact of globalization. While analyzing the point of view of economists, it is necessary to give stress for making comparisons of the variations in income and earnings of different nations, but such comparison should not be fair, if it takes place between developing and developed countries, both are different in their level of the economy.
Organization for Economic Co-operation and Development (OECD) is a global entity, giving stress for various economic and social concepts for improving the overall economic development of various countries. It is very clear that the monetary income is somewhat related to the economic and social well being of both humans as well as the society as a whole. In addition to this, there is a great impact that globalization has in the matter of macroeconomic policy environment because both fiscal and monetary policy is also somewhat significant in contributing towards the overall economy. “Economic growth has often been given priority as an anti-poverty measure. But, the negative link between growth and inequality has been ignored by policymakers. Rising inequality threatens growth and poverty reduction targets calling for more distributionally favorable pro-growth policies.” (Heshmati. P.4. 2003).
One of the major problems associated with the concept of this variation between earnings and income inequality is the adoption or implementation of fiscal and monetary policies followed by different countries. So, it is essential to establish a common fiscal policy for solving this problem. Fiscal policy is related to two major concepts like allocation of resources and proper distribution of income. The proper implementation of fiscal policy is very essential for maintaining a constant price level, elimination of job redundancy, and thereby the fulfillment of effective economic growth.