Socio-economic Inequality as a Prerequisite for the Abolition of the Middle Class

Abstract

The article is discussed the factors affecting the economic well-being of citizens, analyzed the reasons for the uneven distribution of incomes of the population, which led to modern differentiation and increased socio-economic inequality, which entails the complete disappearance of the middle class. Possible ways to reduce income asymmetry to change the current situation are proposed. Strengthening the processes of globalization in the modern world, increasing the role of transnational corporations leads to even greater stratification of society and economic inequality. In addition, the result of growing economic inequality in the leading countries of the world is the aggravation of social problems. This raises the question, if there is a concept of social justice, maybe income inequality is not always so bad? In recent years, the problems of socio-economic inequality have raised a lot of questions and discussions among leading scientists and politicians. Searches are being made for objective causes of economic inequality, as well as ways to eliminate them. Increasingly, the question is raised whether only governments can influence the processes of smoothing the consequences of socio-economic inequality, which has a negative impact on socio-economic relations in society? A significant stratification of the population in terms of income entails serious socio-economic consequences, such as the washing out of the middle class, which is the backbone of the state in conducting economic policy; destruction of human capital; growth of social costs; growing social and political tension. It should be noted that inequality in the incomes received by the population causes an uneven distribution of the quality of consumed goods, works and services and affects the amount of savings. Naturally, in any society, there are differences between citizens, expressed in the amount of wealth they own, but when these differences reach an extreme level or grow very rapidly, the social cohesion of society is threatened.