Unequal Distribution Of Income Inequality Essay

Inequality refers to the way socially defined groups of individuals are positioned within their society as gender, class, age and ethnicity. This also involves the unequal distribution of social goods and services such as the labour market, health care and education (Chenoweth & McAuliffe 2012).
Inequality can have many negative effects on the community and the way we live in our society. Donnison (2013) examines inequality in Britain and the damages most people will experience during their course of their life. This is particularly apparent in reduced life expectancy and more damaging social problems with such concerns as social justice, inequality and human rights (Donnison 2013). Distribution of income is the main indicator of inequality but certainly not the only dimension. Donnison (2013) discuses other issues relating to inequalities in the United Kingdom including class, issues around mental health, employment and wages. We can than
relate these issues to the Australian context as inequalities are experienced on a global level.

Income security and stability is one of the main fundamentals for an individual and the ability to exercise their rights and responsibilities of social citizenship (Jamrozik 2009). People receive income in a variety of forms and through the use of different means and measures. Jamrozik (2009) discusses how it is the lack of access to income that relates to social and economic exclusion. For us as Australians the main source of income is employment either through the labour market or shares from savings or investment. For other people the pension or government allowances are the main or possibly even the solitary source of income and they are extremely reliant on this (Jamrozik 2009). Donnison (2013) talks about with the help of full employment Britain was able to reach their hopes of being an egalitarian society and by the 1970s this was a reality for the country. Since this time there has been a significant turnaround within these trends and Britain is now seen as a country with the most inequalities apart from the United States (Donnison 2013). Inequality matters as it affects the strength of our economy and the state that we live in (Watts 2005). Australians are doing well across the board in a number of areas including employment rates and an increasing life expectancy (Barrett 2000). There was a drop of employment rates across the world within many countries due to the hit of the global financial crisis including the United Kingdom being affected greatly (Barrett 2000). Dawkins (1996) states that, rates of employment declined from 60% in 2005 to 52% in 2010. Compared to Australia’s employment rate, which stayed around 62%.

Every employee should be entitled to the minimum legal wage, as this is the basic requirement for fairness and equality across all aspects of society unfortunately this is not the case and this is where inequalities are formed (Austen 1999). Most individuals are unaware of the larger scale of inequality, it is this lack of awareness that runs through society and the different classes within it causing major problems. In Britain there is a strong divide with the wage gaps between the lower and higher paid workers (Donnison 2013). Donnison (2013) states there has been significant growth in inequality. This could be linked to such technological advancements and changes within the labour market (Dawkins 1996). There was also a decline of unions, which had once increased the employment and wages of the workers with low skills or experience (Austen 1999). Minimum wage was crucial in securing wage increases for low paid workers (Donnison 2013). The rise in the United Kingdom in regard to wage inequality was strongly related to institutional and technological changes, this brought about the loss of jobs and employment across the community. People were replaced with the introduction to new machinery and advancements, this ultimately affected the labour market in a harmful way (Austen 1999).

The patterns and trends of inequality are forever changing amongst the areas discussed. Addressing the issues of inequality is extremely important because as individuals we construct our personal identities and use it in a way to perceive others in society. It is evident that inequality exists among these countries analysed and within their communities. We are able to see that there are negative implications as a result and the impact this has not only on an individual level but the society and population within it.

References
Austen, S 1999, ‘Norms of inequality’, Journal of Economic Issues, vol.
33, no. 2, pp. 435-442, viewed 22 March 2013, Proquest Central database.

Barrett, F, Crossley, F & Worswick, C 2000, ‘Consumption and income inequality in Australia’, Economic Record, vol. 76, no. 233, pp. 116-138, viewed 20 March 2013, Proquest Central database.

Chenoweth, L & McAuliffe, D 2012, The Road to Social Work & Human Service Practice, Nelson Australia Pty Ltd, Victoria

Dawkins, P 1996, ‘The distribution of work in Australia’, Economic Record, vol. 72, no. 218, pp. 272-286, viewed on 20 March 2013, Proquest Central database.

Donnison, D 2013, ‘Some ideas for revising Britain’s gross inequality’, Scottish Review.

Jamrozik, A 2009, Social Policy in the Post-Welfare State, Australian Society in the 21st Century, 2nd edn, NSW, Pearson Education, Australia.

Watts, R 2005, ‘Inequality in Australia’, Pacific Affairs, vol. 78, no. 1, pp. 174-176, viewed 20 March 2013, Proquest Central
database.