The Ninety-Nine Percent and the One Percent

This paper explores income inequality from different angles. It tries to understand the possible reasons for income inequality that exist in the modern world. It supports the notion that exceptionally talented individuals using technology has been a reason behind rising income inequality. The paper explores whether this has been the only reason for rising global income inequality. It suggests that there may be other possible reasons, one of which is globalization Again, the paper explores the arguments for and against the ninety-nine percent and the one percent. It analyzes whether the income of the middle-class has really remained the same and argues that their income may not have necessarily stayed the same. It explores the case for higher taxation on the rich. It analyzes the consequences of income inequality on human development for countries at different stages of human development. The paper finds that the relationship between the Gini coefficient and human development is different for countries at various stages of human development. However, it finds that income inequality reduces human development for all countries irrespective of the stage of human development. Finally, the paper explores the relationship between income inequality and poverty level for the United States. It finds that poverty level in the US did not increase even though income inequality has increased.