I believe that it is very important for everyone to contribute and readdress financial and social inequality, especially people of higher socioeconomic classes. We know that at the moment the gap between the poorest and the richest is at the highest it has ever been and wealth disparity is exponentially growing, and this needs to be addressed before it is too late. People of higher socioeconomic classes have the most influence that can be used to create change, they are obligated to use their ‘advantage’ to make an impact on society. I believe that a more improved taxation system that taxes the richer more is necessary to fighting inequality
The trickle-down effect is a philosophy that believes that by making the rich richer, the money will eventually find its way down the socioeconomic ladder. People who believe in this philosophy think that no real action needs to be taken to be able to reduce this financial inequality. Ronald Reagan, the former POTUS, believed in this method of abolishing this inequality, or rather reducing the gap, and therefore he implemented this in the United States. Now, nearly 30 years later, we know that this really hasn’t worked very well for the American Economy. Now, many American economists believe that it is nearly impossible to close this income gap.
Philanthropy and donations are some of the few ways that this gap can be closed up, but the philanthropy needs to be well targeted especially toward education. Educating children from lower socioeconomic classes allows the whole cycle of poverty to stop. Many NGOs believe in this concept (eg my GC Green Umbrella). Education allows less fortunate people to have a level playing field with those of richer families. This will increase the number of skilled workers and reduce the number of labourers, forcing multinational companies (MNCs) to automatize their factories and this, in turn, will increase the number of skilled jobs. This creates a ‘job cycle’ which will counter the ‘poverty cycle’.