MKTG 16-Retail Managment

Name: Grace E. Olmilla Group 2

Chapter/Topic: 20- Income Inequality, Poverty & Discriminations Date: August 19

Thought Provoking Questions (TPQ)

Part1. Income Inequality, Poverty & Discriminations. I find the most interesting in this chapter is the Causes of Income
Inequality. Its good to understand why inequality matters, what are the cause & its consequences. Some degree of inequality may
not be a problem insofar as it provides the incentives for people to excel, compete, save & invest to move ahead in life. Trends in
income inequality have been understood to have ethical significance for different reasons. There are some societies with relatively
high income inequality can be equitable, since it is more likely income differentials will compound & aggravate unfairness in the
allocation of opportunities & efforts to improve the well-being of the least advantaged. Some argued that lessening income inequality
is a valuable goal because of some reason; it can inhibit growth & slow poverty reduction, often undermines the political process
that may lead to an inadequate social contract and may trigger bad economic policies with ill effects on growth, human
development and poverty reduction. It may undermine civic & social as well as political life & inhibit certain kinds of collective
decision-making; at the societal level it may also generate its own self-justifying tolerance, perpetuating high inequality equilibrium
despite the potential economic & political costs. Its very evident that most of the common drivers of inequality are the skill premium
associated with technical change & globalization, weakening protection for labor, & lack of financial inclusion in developing countries
but these may vary amongst countries. Policies should be country specific, should focus on raising the income share of the poor,
and ensuring there is no hollowing out of the middle class, financial inclusion is imperative in emerging & developing countries while
in advanced economies, policies should focus on raising human capital & skills and making tax systems more progressive.

Part2. Thought provoking questions:

a. How income inequality can benefit the least advantaged?

b. What are some of the policy measures our government had undertake to address inequality?
c. What are the outcomes & opportunities of income inequality?
d. What Government and institutions must do to ensure development initiatives do not discriminate or otherwise reinforce
discrimination?