Essay 368 – The rich are becoming richer and the poor are becoming poorer

GT Writing Task 2 / Essay Sample # 368

You should spend about 40 minutes on this task.

Write about the following topic:

All over the world, the rich are becoming richer and the poor are becoming poorer.

What problems does this cause?
How can we overcome the problems of poverty?

Give reasons for your answer and include any relevant examples from your own knowledge or experience.

Write at least 250 words.

Model Answer 1:

It is an undeniable fact that the rich get richer and the poor get poorer, and it is more prevalent in modern times. The main problem this creates is income inequality and social disparity in living standards. The most viable solution is introducing a progressive tax to increase the disposable income of the poor in order to curb the problems caused by poverty.

The phenomenon creates a disparity in income among people. This is because rich people own the wealth to invest in new sources of generating wealth, therefore accumulating new wealth. Over the period, wealth accumulation can substantially contribute to the persistence of inequality in income. As an instance of wealth accumulation, bus owners who have their own buses consistently raise more money than drivers or helpers. Hence, an owner who already has money to commence with can afford to expand his business or invest in new ventures while drivers and helpers live on meagre salaries. This trend also creates a discriminatory society where affluents own everything while the poor own nothing and live inhumanly.

One way for the world to overcome the issues of poverty is to introduce a progressive taxation system. To explain it, a taxation system that is progressive imposes a higher tax on higher levels of income groups. This system leads to high-income earners paying a larger portion of income taxes than low-income earners. This, in fact, allows the government to invest in developing the living standard of the poor, offer them monetary incentives, and build amenities and systems to help the needy. It also helps create job opportunities for the unemployed population. Consequently, it can effectively increase the disposable income of the low-income group of society and thereby, decrease poverty.

In conclusion, when the wealthy are becoming wealthier and the poor are becoming poorer, it can result in economic inequality and social disparity. Applying a progressing tax system to raise discretionary income is the most effective weapon to fight against the problems of poverty.

Model Answer 2:

The global phenomenon of increasing wealth disparity, with the rich amassing more wealth while the poor face deepening poverty, has sparked widespread concern. While income inequality poses significant social and economic challenges, implementing equitable policies and fostering inclusive growth can help mitigate the problems associated with poverty.

One of the problems caused by growing wealth disparity is the exacerbation of social inequality. As the rich accumulate more resources, access to quality education, healthcare, and basic amenities becomes increasingly unequal. This perpetuates a cycle of disadvantage and limited opportunities for the poor, leading to social unrest and a lack of social mobility. Additionally, wealth concentration can widen the gap between the haves and have-nots, eroding social cohesion and exacerbating issues such as crime and political instability.

Another problem stemming from this trend is economic inequality. The concentration of wealth in the hands of a few limits economic growth and hampers upward mobility. The poor are unable to invest in education, skills training, or entrepreneurship, further entrenching their disadvantaged position. This imbalance in economic power creates barriers to fair competition and perpetuates a cycle of poverty, hindering overall economic development.

To address these challenges, policies aimed at reducing poverty and promoting social inclusion are crucial. Governments should prioritise equitable distribution of resources, ensuring access to quality education, healthcare, and basic services for all citizens. Progressive taxation systems can help redistribute wealth and fund social programmes aimed at poverty alleviation. Additionally, fostering entrepreneurship and providing vocational training can empower individuals to generate income and contribute to economic growth.

In conclusion, the widening gap between the rich and the poor presents numerous problems, including social inequality and economic disparities. However, through the implementation of equitable policies, such as investing in education, healthcare, and social programs, societies can strive to overcome the challenges of poverty.