Abstract
Extreme polarization of wealth, a prominent issue occurring in the long human history characterized by the rule of emperor, remains a serious problem in a very few nations. The modern times have seen how the worsening rich-poor divide led to the breaking out of the two world wars and a series of social problems. In some sense, rich-poor divide results in the deterioration of human nature, and is the source of all kinds of social problems. This study provides a definition of polarization of wealth, conducts an analysis of how people’s continuous saving behavior contributes to the increase in income disparity, and suggests that currency, as a universal equivalent, should be given a certain time limit, so as to ensure a check on people’s constant saving conduct, prevent the limitless amassing of wealth and help solve the issue of wealth polarization.
Highlights
The issue of gap of wealth is a global problem which is undergoing serious deterioration, and is estimated to keep worsening
The same is true of macro economy, that is, constant fixed asset investment plus unequal income model leads to a widening savings gap and worsening wealth polarization, resulting in currency devaluation
It is due to citizens’ loss of equal borrowing power and fair chances for development that result in the profits that a commodity economy produce all flow into the pockets of the wealthy and powerful, who would prefer to save their money in banks, making the economy short of money for its normal operation and as a result, unemployment occurs
Summary
The issue of gap of wealth is a global problem which is undergoing serious deterioration, and is estimated to keep worsening. The global economy is faced with wealth gap, inflation, unemployment and other challenges. In this context, it is of great significance to examine the causes of these problems and find the solutions. The paper will give a definition of wealth gap, followed by an analysis of its causes; it will explore the impacts of the gap on all social issues; after that, an ideal economic operation model will be discussed; at last, the operational mechanism for terminable currency, the key to the successful running of ideal economy, will be described
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