Income: Who gets what? Why?

In the recent long time, Australia has achieved sustained economic growth, low inflation, declining evaluate of unemployment and change magnitude growth of productivity. Structural changes have played an essential voice in creating a more efficient and competitive economy. However, it created a serious problem, that is, the inequality shot is increasing dramatically. The rich atomic number 18 financially better off while the poor be worse off. As a consequence, a more divide society has been created. This essay briefly describes what is happening to income disparities in Australia and wherefore explains why economic inequality arises, both in domestic and international perspectives.

The extent of inequality has been rising sharply since nineties and is richly compared to other industrialized nations. According to Riley (2006) and OMalley (2006), the pay increases for promontory executives are six times more than they were 15 years ago while there are big plight cuts that the maintenance workers at Sydney Opera House are facing. Riley (2006) describes that the high payment to chief executives have signifi deposet impact on the rate of inflation as well as the generation of shareholders wealth. In the 15-year period, the average annual increase rate in chief executives pay is13.5%, which is much higher than the inflation rate and shareholder returns.



On the other hand, the wage for one of the maintenance workers at Sydney Opera House has a rapid hurl from approximately $900 to just above $700 and the annual decline is more than $10,000. (OMalley, 2006). These are completely different situations that indicate the inequality gap is widening in Australia.

To consider the reasons of greater income disparities in Australia, it can be due to some kinds of domestic and international factors. narrowly speaking, the major factor of generating growing economic inequality is the application of high levels of unemployment in Australia. Unemployed people...

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