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Economic scale inequality

Revenues play a very important role in the life of each person because they are the direct source of satisfaction of his/her unlimited needs. The main source of income is wages. However, often they are not sufficient to meet even the most necessary conditions for the existence of people. Therefore, there is a need for the state to regulate wages, and for the population to seek other sources of income.

The incomes of majority of the population are often very low in comparison with the incomes of a minor part of the population. In this regard, there is a social tension in society and the state should take measures for its overcoming. The more revenues are, the higher the demand for products and services produced by different industries is. Therefore, the higher the quality of products is. It happens because of motive’s uprising: for achieving better results, competitiveness, higher production efficiency, and as a result, the economic situation in the country is becoming better. That is why the regulation of income and wages is part of important policy of any state.

An indispensable condition for normal economic growth is a certain balance between profit and wages in the national income. If the share of wages is too high, then the owners of capital will not be interested in investing. If on the contrary, the share of wages is excessively low, then the tension and the demands of the trade unions to pay more will inevitably increase. This will very quickly reduce profits and will bring to naught the desire to invest.

 Thus, the incomes of the population and the sources of their formation deserve close attention. Accordingly, all problems associated with them require an early resolution. That is why this topic is relevant at any time, in any country, and under any economic system.

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