income inequalities

Economics – Income Inequalities

Throughout time and history nations of the world have always been spilt into two unequal groups, the rich and the poor. The powerful and the weak. This has left us all with a dilemma, who should have to power and who should get what money. An interesting answer to this problem could be the economic model of communism. This is a much different system to that of democracy that we have in Australia and most other western industrialised countries.

One of the first and major differences between a Communist and Democratic government is their economic system. In a communist government, the community owns the major resources and means of production. The goal of such a system is to prevent any one person or group of people from becoming radically rich, while others are extremely poor. The system attempts to eliminate lower class by balancing the wealth between rich and poor, therefore giving everyone equal pay and ownership. Unfortunately, this results i...