Project Based on Analysis of the Complexities Surfacing For Government - Essay Example

REPORT PROJECT Name Institution Professor Course Date Executive Summary Inequality is one of the critical issues, which affects the operations and transactions of the governments, business entities, and civil societies in the global context. United States continues to experience massive increase in inequality, which makes it one of the economic and social issues affecting citizens, companies, and social institution. This report focuses on the assessment of the increasing inequality in the United States. This is through relating the concept of inequality to three aspects of discussion: civil society, businesses, and government. In addition, the report examines the role of inequality in the diminishing influence on capitalism or capitalistic economy with reference to the case of the United States. According to the findings of the report, intensifying disparity in the United States has substantive influences and implications in relation to the operations and transactions of the government, civil society, and business entities in the internal and international contexts. Introduction The purpose of this report is to present an analysis of the complexities surfacing for government, business, and civil society in relation to rising inequality, as well as its implications on the capitalist system with reference to the case of the United States. The United States comes out as a very good test case with reference to the hypothesis that income inequality has various implications on social, political, and cultural outcomes. One of the biggest socioeconomic questions in America now is the motive behind the rapid surge in relation to income disparity in the United States, particularly between the top 10 percent of the workers and everyone else. There are seven aspects concerning the rising inequality: geographical inequality, international differences in the income distribution, skill-biased technical change, disparity at the lowest of the income distribution, changes in the labour’s share of income, and consumption inequality. Nevertheless, there are gender differences with reference to the essence of income inequality. For instance, between 1979 and 2005, the income gap between women working within the context of the median wage and the low-earning women in the United States had the potentiality to grow much more in comparison to their male counterparts within the same income level. According to this perception, the deterioration in the actual worth of the least wage over the period was essential in playing a causal role. Methodology The study will focus on the utilisation of United States with the intention of generating a business report on the influence of globalisation in changing relationships between government, business, and civil society. In addition, the report focuses on the utilisation of appropriate journals and research articles to develop and incorporate accurate argument with reference to the scope, objectives, and research questions. Findings and Discussion Drivers/Causes of Inequality Most of the upsurge in the income disparity in the United States relates to the massive rise in the inequality of the market earnings, particularly at the top of the distribution since changes in the redistribution plays a minimal role (Bonilla-Silva, 2006). It is essential to note that the rapid increase in the market income inequality emanate from changes in the wage inequality, as well as in the top incomes. Human capital, the skills and knowledge of employees, is essential in illustrating the differences with reference to labour incomes when there are rapidly changing skill demands (Honohan, 2004). From this perspective, employment in the United States is expanding for the best trained while falling for others. Business refers to the assortment of private, commercially oriented entities or organisations ranging in size from one-person proprietorships to corporate giants. On the other hand, society refers to the community, nation, or broad group of individuals with common or similar traditions, cultures, values, collective activities, and interests (Fritz et al., 2009). Society provides the microenvironment for the business entities to operate effectively and efficiently. Government refers to the exercise of influence, as well as control under the influence of law and coercion in relation to a particular group of people formed into a state. It also refers to the management of the state under the concepts of appointment or election (Sanderson, 2013). Governance has the tendency of recognising stakeholders while involving a more inclusive form of management, which is responsive, as well as responsible to the relevant stakeholders. Government has critical influence or implications on the operations and activities within the society or microenvironment. For instance, government has the tendency of stipulating the rules of the game for the business entities in the course of handling and assessing the demands, as well as preferences of the consumers (Prince et al., 2013). In addition, governments engage in procurement of the business’ products and services to aid satisfaction of the relevant stakeholders. Moreover, government institutions have the tendency of employing contracting power with the objective of enabling business organisations or entities to offer services it demands (Mathers & Loncar, 2006). In this context, the government comes out as the major subsidiser in the course of promoting business organisations while focusing on maximisation of the societal welfare in accordance with the needs and prospects or expectations of the target audiences (Mayda, 2006). Similarly, governments have the tendency of owning massive capacities in relation to the productive equipment and capital, which are critical in the transaction of the business activities. In most cases, government focuses on designing policy for the realisation of economic growth while focusing on fulfilling various roles as an investor, sponsor, banker, and a blend of each role. From a theoretical perspective, government entities have the obligation of protecting societies’ interests in relation to motivation aspects by business entities (Heathcote et al., 2010). It is also critical for the business entities to operate under the influence of the government, which is ideal in the management of the large areas of private business. Increasing inequality vs. Government In the current context, it is essential to note that the United States is becoming more unequal from an economic perspective (Prince et al., 2013). The trend toward greater inequality continues to be one of the consistent themes in relation to election campaign. According to certain economic practitioners, inequality is necessary to reward commitment, achievement, hard work, and entrepreneurship. Nevertheless, the current state of inequality in the United States is too extreme (Lee, 1999). On the other hand, certain practitioners and researchers have focused on blaming unfair tax policies, thus perception of the modern’s inequality as an element of negligence by the government in the course of abandoning the goal of equality opportunity. From the trend in the United States, it is critical to note that the very richest in the region continue to get richer (Honohan, 2004). According to the findings of the sophisticated indicators such as Gini coefficient, the United States is becoming notably more unequal. In 2013, World Bank Group focused on the integration of two goals with the intention of measuring substantive success in relation to the promotion of sustainable economic development, as well as monitoring of the effectiveness in the delivery of outputs. In the first instance, the group focused on the utilisation of the need to end extreme poverty through reduction of the portion of persons existing on less than $1.25 a day to less than 3 percent of the global population by 2030 (Kaplan et al., 1996). Secondly, the group sought to promote shared prosperity in relation to the improvement of the living ideals of the bottom 40 percent of the population in each nation (Chan, 2014). From a critical perspective, there is need to track the objectives in ways that promote sustainability and security of the future of the planet and its resources, promote social inclusion, and limit the economic burdens, which future generations will inherit (Heathcote et al., 2008). The increase in inequality in the United States has been essential in the rapid increase in the rate of poverty. For instance, between 2007 and 2012, the official poverty rate increased from 12.5 percent to 15.0 percent (Krueger, 2012). It is essential to note that the current poverty rates for the full population for the children tend to rank among the very worst over the 15 years since 2000. In the recessions of the early 1980s, as well as 1990s, the poverty rate in the United States was approximately 15 percent (Saez & Zucman, 2014). In spite of the latest recession being extreme in comparison to the prior or previous ones, the increase in poverty has nonetheless been partly held in check under the influence of the responsive safety net (Keister & Moller, 2000). The increase in inequality in the United States also relates to the rising income inequality, as well as wealth inequality among members of the society. It is critical to note that the great recession had massive influence in relation to increase for inequality rather than the consumption inequality. These implications tend to have substantial influences on the operations and transactions of the government in the course of seeking to improve the living conditions of the poor while also protecting the interests of the rich (Saez & Zucman, 2014). In the United States, it continues to the obligation and responsibility of the government to adopt and implement appropriate policies and practices with the intention of eliminating inequalities or alleviating the influence of poverty among the citizens. Global Inequality vs. Civil Society It is essential to note that the potentiality in relation to the growth of the cavity between the rich and the underprivileged increases chances for violent conflicts (Chan, 2014). Lack of reliable and valid data during certain periods in history, as well as in developing nations (prone to civil wars) continues to make it difficult in the course of assessing a possible correlation between civil war and income inequality (Krueger, 2012). Some of the critical factors in the prediction of the likelihood of a nation to descent into civil war include poverty, political extremism, religious, and ethnic schisms. It is critical to note that the income inequality in the United States under the measurement of the standard Gini coefficient is substantially higher in comparison to other developed nations such as Canada, Australia, as well as other developing entities such as India and Russia (Gitlin, 2012; Corak, 2012). Similarly, popular anger in relation to inequality peaked in 2011 under the influence of the Occupy Wall Street protests, which was essential in catalysing similar movements in the global context (Calhoun, 2014). It is critical to note that the protests focused on highlighting discontented of the society members and civil movements, thus promoting the President of the United States to come up with further discussion of policy ideas in 2014. The policy focused on the provision of equal opportunity for the citizens of the United States (Calhoun, 2014). There are numerous or various causes of income inequality in the case of the United States. In this context, it is critical to note that globalisation and technological change or advancements have been essential in the generation of greater competition for the lower-skilled workers, thus forcing these entities to lose union membership (DeLuca et al., 2012). These aspects have the tendency of offering well educated, higher skilled workers more advantage in the labour market. Extreme income inequality enables a few wealth members of the society to capture the political process effectively and efficiently, thus the platform to push through an agenda that is in their favour (Calhoum, 2013). In the case of the United States, the extreme income inequality and the issue of poverty have been essential in the generation of the dramatic lowering of the marginal tax rates on the wealthy, as well as the unsustainably low rate in relation to the overall taxation systems (Khatib et al., 2012). From this illustration, it is essential to note that massive increase in the income inequality in the United States will create substantial opportunities for the civil rights in the course of assessing and adopting appropriate mechanisms to help the poor. For instance, the development and execution of the Occupy Wall Street movement was an illustration of how civil societies or movements can focus on the utilisation of their prowess in the course of aiding attempts by the government and business entities to reduce the growing inequality. It is vital for the government, civil society, and business entities to focus on working effectively and efficiently with reference to improving the living conditions of the citizens of the United States, thus the opportunity to reduce the gap between the poor and the rich. Global Inequality vs. Business The discussion in relation to inequality continues to turn from the ethical issues to business or economic implications or influences such as the role of inequality in stagnation of the economy, thus affecting the operations of the business entities within macro-environment platform. In the first instance, the rising inequality in the case of the United States provides the platform for lowering of the consumer spending. Business entities tend to thrive in the increased consumer spending in relation to quality growth and development of the economy. Increase in the issue of income or wealth inequality in the United States affects global and internal entities in pursuing competitive advantage in the market and industry of interest. It is critical for the organisations to consider utilisation of appropriate mechanisms with the intention of diversifying production and manufacturing approaches to carter for the diverse or various needs of the market segmentations (Kiyotaki & Moore, 2012). It is also critical to note that increase in the income or wealth inequality can lead to the generation of political growth by the rich, thus the platform for the development of social friction within the society. These attributes are essential in determination of the growth and development of the economy, which in turn affects the operations or transactions of the business entities in the global and internal contexts. The business establishment in the United States is becoming increasingly concerned about the issue of income inequality. This is because inequality, measured in relation to the extent to which the distribution of income within a nation deviates from the perfect equality, is bad for the transactions in accordance with the demands and expectations of the business entities. High inequality within a nation has the tendency of diminishing economic growth since the country might not fully exploit the skills and capabilities of the citizens, thus the platform towards undermining of the social cohesion (Sachs, 2001). These aspects contribute to the increased social tensions, which are inappropriate for the growth and development of the business entities in the market and industry of transaction. It is also critical to note that high inequality has the tendency of generating the moral question in relation to the issues of fairness and social justice, which might be appropriate in the improvement of the image and reputation of the economy in the globalised economy. Moreover, increasing inequality has negative implications on the image of the economy, thus limiting or reducing the number of international investors into the economy of the United States (Cowell, 2000). There is need to adopt and implement effective and efficient policies with the intention of reducing or eliminating the income and wealth inequality in the relation to the case of the United States. Implications of Inequality on Capitalism It is essential to note that increase in the income or wealth inequality in the United States has been essential in contributing to the diminishing of capitalism. From an economic perspective, capitalism runs or depends of profits. A good capitalist will focus on the monopolisation of the production or manufacturing process with the intention of maximizing profits. In this context, income inequality has been essential in the reduction of the consumer spending in the case of the United States (Krueger, 2012). The reduction in the consumer spending is inappropriate towards the growth and development of the capitalistic economy focusing on the exploitation of the opportunities to facilitate maximisation of the profits under the influence of contained or minimal costs of transactions. Reduction in the transactions of the monopolies or multinational operators in the economy of the United States continue to affect the growth and development of the economy, thus the need to adopt and implement appropriate policies. The approach will be essential in increasing or promoting consumer spending, thus the perfect platform for the renovation of the capitalist economy such as the case of the United States (Bakija, Cole, & Heim, 2012). Similarly, there is need for the government, civil societies, and business entities to focus on the assessment of the globalised economy with the objective of utilising appropriate mechanisms to bridge the gap between the poor and the rich within the society. Conclusion In the development of this report, the focus was on evaluation of the complexities relating to the government, business, and civil societies under the influence of the rising inequality in the global context. In addition, the report focused on the examination of the influence of rising inequality on the capitalistic economy of the United States. Categorically, the findings indicate that rising inequality in the United States has substantive influences and implications in relation to the operations and transactions of the government, civil society, and business entities in the internal and international contexts. Similarly, inequality diminishes the strength of capitalist economy through reduction in the consumer spending, thus limited transactions by the business entities. List of References 1. Bonilla-Silva, E. (2006). Racism without racists: Color-blind racism and the persistence of racial inequality in the United States. Rowman & Littlefield Publishers. 2. Honohan, P. 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