Economics essay

It is worth mentioning the fact that top executives are in a privileged position. They reap off the lion share of benefits of large corporations, whereas average employees receive moderate wages at the best, while many have to live from hand to mouth because their level of income is too low to provide for their families and to maintain high standards of living. In such a way, the privileged position of top executives is unfair in relation to their subordinates and average employees.

Often top executives reap maximum profits, even in the time of the business failure or in the time of the economic recession. At this point, it is possible to refer to the case of Enron, when top executives received huge compensations, while employees got nothing. Also, it is possible to refer to high bonuses paid off to top executives of large banks and companies which have received the government aid since the beginning of the economic recession. Obviously, such unfair policies raise the public dissatisfaction and stimulate the rise of such movements as Occupy Wall Street and similar movements. Such movements are the manifestation of the public dissatisfaction and readiness of the public to oppose to large corporations and to the rich as well as to the state, if unfair policies persist.

In such a situation, the gap between the rich and the poor grows wider that aggravates the position of the poor and increases the public dissatisfaction with current policies. In this regard, the ignorance of interests of the poor and the protection of interests of the rich leads to the fast pauperization of the country because after the economic recession, many representatives of the middle class have lost their socioeconomic status and slipped to the low-income level, as their earnings have dropped. In such a situation, the middle class can hardly count on the government support because the government is concerned with interests of the rich. Moreover, it is the rich, who form or, at least, influence the government because many representatives of the economic elite move to politics, where they protect their economic interests solely, paying little, if any, attention to needs of average citizens.

In addition, the rich concentrate the national wealth in their hands, while the poor get poorer. Therefore, the position of the poor becomes desperate, while their number grows fast. In contrast, the number of the rich remains low, but still they hold control over a large part of the national economy. Consequently, they hold tight control over economy and they have a huge impact on politics that puts a larger part of the nation in the inferior position compared to the few rich.

Thus, taking into account all above mentioned, it is important to place emphasis on the fact that the income inequality and the growing disparity between the rich and the poor can lead to the deep socioeconomic crisis. Obviously, the poor have their limit in their pauperization. When their survival is under a threat, they will rebel against a few rich, who hold tight control over economic and political life of the nation.



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