Income Inequality - Sample

The issue of income inequality is inarguably a growing concern. While many believe that it is a positive economic development, I believe the government should try to restrict the gap between rich and poor people.

There are several reasons why many people consider extremely high wages in certain occupations justified. Indeed, careers such as doctors, teachers, and lawyers are highly respected in most modern societies because of their necessity. Furthermore, not only are these jobs essential to a healthy collective, they often require considerable time and effort to master. Therefore, it stands to reason that individuals who pursue these difficult paths are better compensated than the average worker in an economy. Many would consider this fair pay relative to the investment of personal time and effort, and it would indubitably serve as an incentive to attract talents into these career paths.

However, the aforementioned argument starts to break down once we arrive at the salary of many executive-level positions. These jobs can sometimes reach 7 or 8 figures annually, which is an enormous amount of wealth for one person. Many would argue that the level of compensation found at these positions is well-deserved, because of the supposed positive impact on revenue and profit that this individual brings with their experience, connections, and expertise. However, researchers have pointed out that this historic increase in pay for company directors and executives is not proportionate to the value these individuals generate for their respective firms. Moreover, many studies have also shown that as the salary for these leaders rose dramatically, the wages for the average workers have stagnated, and in some cases, they have even failed to keep up with inflation. From a purely utilitarian standpoint, this phenomenon is untenable and should be tackled by governments all over the world before it evolves into an even bigger issue.

Nevertheless, putting an upper boundary on the earnings of citizens may be a step too far. This restriction is, in my opinion, too close to infringing on the rights and liberties of private citizens. Instead, a more reasonable proposal is to increase the tax rate above a certain income threshold substantially. This is undoubtedly a more rational and moderate approach, as it still leaves room for people to earn large sums of money, while acquiring more funds that can be diverted towards the public good. With this solution, the wealth and income gap can be considerably narrowed, while public services and infrastructure would improve, benefitting all citizens.

In conclusion, even though a small minority in certain countries are definitely over-compensated, I am an advocate of a more utilitarian approach such as raising taxes, instead of putting a hard limit on individual income.

(439 words, band 7.5)