Income Inequality

The Devastating Effects of the Rising Trend in Income Inequality

The world as we know it today offers the rich people the means to become richer and limits the possibilities of others to rightfully access the wealth they created. Unfortunately, we have to admit that we live in a society where the more you have the more you are given.

This increasing worldwide income inequality is mainly triggered by the combination of globalization, the political system of capitalism and the advances in technology. Together they drive to a strange phenomenon in which most people end up producing wealth for free. An economy where the top 1% is benefiting while everyone else loses is not sustainable and has a massively toxic effect on our society, ultimately leading to general discontent and unhappiness.

The 1% richest people today have MORE WEALTH than all the other 99% of the planet’s population.

To fully realize how insane the income inequality is in our world today, just take a look at the almost unbelievable but painfully true facts here.

Masses of people are being trapped in this vicious cycle where they work hard every day but can’t afford a decent living, education or health care and thus they don’t have the means to improve their lives and their children’s future. As people at the top constantly increase their personal gains using their status and power, the middle class rapidly turns into the poor and the world becomes unfairly divided.

Research shows that income inequality leads to status competition meaning that low-income households feel the need to spend more money than what they have in order to keep a socially accepted respectability level and living standard. This is how most people end up in debt, which leads to continuous stress and worry for the next day, also known as “status anxiety”.

People living with scarcity devote a portion of their mental energy on dealing with this and, in time, they may develop depression. More unequal countries have a much higher percentage of the population suffering from mental illness compared to more equal countries.

Moving from a country with high economic inequality to a country with lower inequality has proven to be linked with better health than moving from a more equal country to one which is more unequal. This suggests that economic inequality is a cause of poor health. Moreover, life expectancy is longer and rates of adult mortality, infant mortality, mental illness and obesity are lower in more equal societies.

The education level and social mobility are also affected by income inequality. Many researches show the correlation between living in a country with high income inequality and not having access to proper education. Children of highly paid people are more likely to be highly paid and children of low paid people more likely to be low earners.

Income inequality impacts rates of violence as well. An interesting study shows that small permanent decreases in inequality would reduce homicides by 20% and lead to a 23% long-term reduction in robberies.

The list of negative effects of income inequality could go on and on. It is more than obvious that humanity needs a new approach, based on the values of fairness, sharing and doing good. This is what the new economis system of Wowism is all about. Wowism is based on capitalism as it shares depending on contribution. The more a member contributes through her or his actions, the more the member will earn in return. It is a fair allocation of economic gains. Instead of taking advantage of its community, in Wowism there is a sense of fairness that prevails economic greed. Through Wowism, we can put an end to this insane rise in income inequality.

Learn more about Wowism here.

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