Income Inequality in Chile
Chile is a country located in South America that has experienced a lot of economic growth over the recent past and through all of this growth there have been some income inequalities that result from a number of factors. The social equality that is not happening in Chile has been caused by the rapid industrialization of the country and the failure of the government to allow for the economic boom to move through the entire society. It is believed that over that past few years the income distribution gap between the rich and the poor has grown. This essay is going to look at the causes of this unequal situation and its causes. There is hope that the government of Chile will follow policies that will build the economy and decrease the income inequity in that country.
Facts about Chile
In recent years there has been a decline in poverty among the citizens of that country. It is believed that from the years of 1987-1994 the poverty rate was actually sliced in half. That means that the forty one percent that was living in poverty in Chile in 1987 was turned into twenty three percent by the time 1994 rolled around. The decline has been directly attributed to the extreme rise in economic growth and industrial production. The more jobs and spending there were the less poverty existed.
As the economic growth rises and falls it will proportionally affect the poverty rate. Unfortunately the poverty rate was on the rise in the early 90’s. It was symbolized by the rise of unemployment from 4.5 percent to 6 percent. Even though this was a relatively small increase it still pushed more people into poverty while the richest in Chile remained economically unchanged.
There is a large inequity in the income standards in Chile as compared to the rest of the world. However the constant economic growth has been able to reduce the poverty rate in the country. So even though there is a large margin between the rich and what they earn and the poor and what they earn, the overall state of the economy is above the poverty line. It appears as if all countries that experience large methods of economic growth are going to also experience a rise in the income inequality in that nation.
The economic good fortunes of Chile have allowed for many to live above the poverty line, but the social and economic inequality of the people is separated by a large margin between rich and poor.