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Distribution Of Income

Distribution Of Income

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Name Instructor Course Date Distribution of Income The US income distribution is sickening. However, it favors the growth of local and foreign entrepreneur, hence enhancing the country’s GDP. Low income by households and high income by investors imply a low cost of labor. Also, employees understand that they cannot get out of poverty by working harder. Therefore, employees have to make savings and obtain capital from financial institutions to establish small and medium income enterprises (SME). These businesses are highly innovative and respond effectively to changes in the economy such as recessions unlike the more prominent companies, hence cautioning the nation from the effects of depression. Finally, SME attracts angel investors who help them grow into large enterprises with high income and employment opportunities. Income inequality poses numerous negative impacts on society. Firs ...
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Tags: discussion board macroeconomic income distribution Macroeconomics 2301

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