Urban Planning Able to Understand Urban Problems

In the Anglo-American context, often Urban Planning can be traced back to the rise of the Industrial city. The urban planning, in ways to understand the urban problems, such as poverty, it emerged in relation to the industrial city, specifically the Industrial City was made visible as a city of the slums. Peter Hall in his work “City of a Dreadful Night” notes that all throughout 1880’s and 1890’s, on both sides of the Atlantic – there were significant uprisings- also named as working class insurrections. It was the politics of fear and not the consciousness of the well-being of the poor which was the reason behind the appointment of The Royal Welfare Commission of England in 1885. The commission was formed to diagnose the problem of urban poverty. Though the Commission was important because it was based on the idea or a sense of urgency that something had to be done about the concentration of the poverty- Commissions like these shaped in the ways in which poverty was understood.

The Commission had asked statistician called Booth to produce analysis and a map of Poverty in London. Booth’s work via maps was deeply normative- it wasn’t just any analysis of the poverty, infact he classified the poor in to different groups. This showcase of different concentrations of poverty and dividing poor in to different groups gave way to the identification of Slums. Booth divided the poor in to four groups- Class D represented the working poor; then Class C had people with irregular earnings; then there was a group of people he dismissed as undeserving poor and then there was another group which was about 11% population which as per him lacked work ethic and that is the reason of their poverty.

As per him they should be moved to outskirts of the city in institutionalized capacity so that they can be taught to work harder. This mapping gave away a strong sense of colonial imagination that saw poverty as a moral problem rooted in the milieu of the city. Housing shortage was not seen as the root of this issue but the concerns about the public health and moral depredation and degradation concerns through quarantine and containing were closely linked with emergence of the urban planning in England. This historical conjuncture also travelled to the other side of the Atlantic to the United States. Through trans historical understanding we see that the early American Planning was the poverty in the United was deeply racialized. Peter Hall noted that even if the there was similar concern over the poverty, the ways in which the response to these urban problems and social problems takes somewhat different forms on the two sides of the Atlantic.

Through examples of emergence of China 3own, Exclusion act and California Alien Land Law Act in 1914 and Slumm Tenement Housing, it is seen that there was a visible role of Urban Planning policies in producing these forms of exclusion and ghettoization. The City Beautiful movement, which came to know as the planning without a social purpose, dominated early American Planning: zoning and suburban development. The core of this movement resembled the England’s model, which was restoring the moral order and impurity of the urban core cities. These policies became socially exclusionary in their purpose and impact such that better housing was only available to those who could afford it (New York Regional Plan of 1931). City parks also were influential as neighborhood revival and a way to restore the quality of the urban life.

In 1960’s, in the United States, there was a shift in Urban Planning, which went from community action to community development. Professor Roy in her research paper “The Anti-Poverty Hoax” shows how this community development in the form of eliminating poverty just became pretext of territorialization of poverty not only in the city but also in the community. Under the ethos of self help, community action was rapidly transformed into community development programs. Professor Roy brings our focus on the manner in which the people were allowed to participate in community development, like in the case of Oakland, Oakland Economic Development council to counter poverty established a citizen’s board and many Black activists were taken as part of that council as token community representatives.

As soon as these activists realized and argued that the war on poverty should be address the issues of racism, joblessness and police brutality and should not simply expand on existing social services, the Mayor of Oakland refused to address these demands and the council was hence dissolved. There is an interesting relationship between these two historical conjunctures is that either Industrial City or be it 1960s- the city in both of these era becomes the key and an object of analysis and intervention. In both of these Era’s Urban Planning politics led to the segregation and exclusion of the poor in the name of reforming the city.

Brought about by industrialization and urbanization, the city reveals poverty in greater light that it showed in the countryside- this became an international issue. The 21’st century has seen a reshuffling of the global order where the center of the global political economy has shifted from the global north to the global south. From the readings of Professor Roy and Asher Ghertner of “Slum Free Cities” and “India’s Urban Revolution”, it’s easier to understand how the discrete themes of development of a city in to a world class city acts a site for dispossession and displacement. Though in the Global South, this displacement is not necessarily racialized but is a way for the state to reclaim the slums. Roy describes this as the Inclusive Growth Paradox where we see transformations of the informal properties into cadastral properties having global legible value.

The current Urban development in India is trying to follow a predictable formula of creating peri-urban elite enclaves of residence and leisure, economic zones to attract global capital, and civic campaigns to ensure spatial order in the city by following referents like referents that mark the Asian century and its miracles, from China’s Special Economic Zones to Dubai’s real-estate development to Singapore’s meticulous urban planning. Ghertner through his research “India’s urban revolution: geographies of displacement beyond gentrification” examines increasing use of the state force to clear land for private development for Slum Free Cities. He argues that these lands have not experienced historical disinvestment; have mixed, non-ownership-based tenure arrangements; displacement occurs there without redevelopment for a higher and better use and it all depends on the application of extraeconomic force.

To understand this Urban Change Ghertner analyzes the urban displacement through three theories- urban revolution, enclosures, and accumulation by dispossession or ABD by the State or Private Companies backed by the government. ABD accounts for forms of accumulation that require the application of direct extraeconomic coercion, such as eminent domain, slum demolition, land grabbing, dam-induced displacement, and the like. It is necessary for the state to consider the fate of ‘economically disadvantaged victims of urbanization’ and to replace ‘stringent eviction laws’ with the ‘provision of basic necessities for squatters

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Segregation and Inequality of Opportunities Among African Americans in Poverty

The 2016 census reported around 9.2 million African Americans to be below the United States poverty line, which at the time was nearly a quarter of all the people living in poverty at that time (“Basic Statistics,” 2018). This is a defined group of people who live as a part of the lower class in the American class system. While there are many similarities that African Americans in poverty share with other Americans in poverty but they also have their own unique characteristics. African Americans that have fallen below the poverty line have become segregated in our class system and this has led to unequal opportunities for a successful and healthy life.

As I went through and studied this impoverished group I came to the understanding that there are many  characteristics they have in common with the rest of the world in which they coexist and a lot of others that are special to themselves. In reference to sociologists Douglas Massey and William Wilson’s perspective, they provide that “major sociological accounts of poverty concentration and its growth in U.S. cities since the 1970s”, so since this time the culture of poverty driven African Americans started to develop and grow to where it is today (Quillian, 2012).

Massey and Wilson’s perspective explains that African Americans in poverty primarily live in or around larger cities, in urban areas where they can find ways to live some sort of lifestyle. We see this group living within these areas where there are many different types of people around them. This impoverished group becomes associated with the upper, middle and lower classes all in one area. These areas include blue collar workers, business owners or CEOs, people part of the “one-percent”, and even members of other cultures in poverty.

African American in poverty primarily speak English but often depending on where you are in the U.S. you may hear different clang words. Just like any other culture this group has developed their own language with slang words, certain values, religions, and ways they express themselves. There are many different aspects to this culture and unfortunately they get a lot of negative, stereotypical assumptions about their lifestyle. People like to look at crime, drugs, and the homeless and associate them with this group and culture.

Although there is no doubt that some of those characteristics are true, they are not what this culture is built on. The culture has been developed over a period of time through their struggles in society and fighting for a life to provide for themselves and their families. This impoverished group often express their feelings and culture through music such as rap or hip-hop, things that they own like their cars, or what they associate themselves with such as sports teams from the areas they live in. Again, these are not proven facts but are common stereotypes of people from this culture.

Now, back to Massey and Wilson. The history of African Americans in poverty began around the 1970s. Due to changes in industrialization and laws forbidding legalizes segregations certain groups and cultures were in result having to change themselves. According to Wilson, by the time the 1980s came around the urban group African Americans were a part of began to separate from the “occupational system” and they were becoming unemployed (Wilson, 2011, p. 7).

A major reason was that the factories where many African Americans in cities were working began to look for highly train and skilled employees. During this time period racism was very common and thus this group had no opportunities for schooling or ways to get trained to work these factory jobs anymore. This is an example of the conflict approach to sociology. African Americans were being forced to fight for their position in society, while they are also fighting for resources to obtain those jobs. Resources, being schooling or many to afford the schooling and training they need but can’t get.

Starting back in the 1970s when the work force in the inner-cities was being force to change, certain areas became poverty driven and they have not been able to recover. We see patterns develop in these communities that explain why African Americans are in the general urban areas and why they stay there. As certain groups of African Americans were filtered out of the working system, some of them could not recover. These groups settled together into what are now poverty driven areas. Kevin Thomas a sociologist from Penn State College of Liberal Arts conducted a study where he looked at the family influences towards poverty in children. The study was directed mostly towards immigrant children but also shared some shocking details about the lives of U.S. born African Americans.

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The Actions Indicating Obama as a Global Leader

Leadership entails far much than just attaining the power and sitting in an office. It entails knowing the society and people surrounding the leaders. A good leader needs to be real and ideal so that they can suit the locals and international communities. Similarly, a leader is they that understand the psychological aspects of their audience and addresses what they need and compares it to what should happen in the entire society.

Professionalism and ethical considerations are other ingredients or virtues that a leader cannot afford to live without. Therefore, any leader who depicts these traits or that does not fall short of these characteristics is recognizable not only in the United States, but also globally. Barack Hussein Obama, a legislator and former president of the United States, is one naturally talented leader that hit the global leadership mark. Obama was the most popular and most influential politician in the world.

Barack’s quotes, oratory aspects, and the ability to give a speech with minimal references to a written source were commendable. Besides, his ability to blend with many was touching. Obama had the power to convince a crowd and to arouse the feelings of his audiences. However, no leader without flaws and critics quote Obama as one man that encouraged murder by leading the killing of Osama, the Libyan president, and Sandam among other radicals.

Obama never encouraged violence during elections, campaigns, and by engaging other leaders in violence. He is one leader that could accept defeat and hand over power if he was defeated. This trait is clearly seen from his handing over ceremony to President Trump. Secondly, Obama was a democratic individual and is still democratic.

For example, when he defeated Hillary Clinton in his first nominations as the presidential candidate of the Democrats he accommodated Hillary and even gave her a nomination as the Secretary of States during his reign. Besides, the manner that Obama awarded Joe Biden and addressed him in front of crowds could tell that Obama was down to earth and allowed democracy to prevail.

Birth place of an individual, to most people, dictates and determines the destination or the path that a person will follow. The community assumes that personality relies on the fortunes that the surrounding people open-up for a developing child. Most people that do not survive the hurdles of life blame their background and their parents. However, the life of Obama was a total contrast of these conditions- it had no blames of where he found himself as a young boy.

Obama found himself in a far place from his grandparents and minimally enjoyed the love of his father and mother before they passed on and left him an orphan. It means that Obama, like most of the blacks in the mid-20th Century, grew in poverty but never cried for being in such an environment.

Obama is one inspiring man and a role-model to many as he exploits opportunities despite the circumstances that he faces. Obama grew as a humble man with a lot of focus from childhood, in college, during his practicing period as a lawyer, his dating life, as a president of the United States, and now in his life after governance. These steps in life trigger much arousal in the hearts and souls of many youth who then aspire to transform their lives and break from abject poverty to prominent persons.

Obama grew up a charismatic person and with focus. His college life shows that as a leader he was a friend to many. Besides, Obama was likeable and polite to his girlfriend and the current wife Michelle. Being charming or likeable is a rare trait in the souls of many people that have undertaken education. Often, these people are learned, but not educated. Barack extended his charming nature to his leadership. He led people with a lot of unity and love to leaders that served under his reign.

For example, the act of awarding Joe Biden as the most democratic person under his reign was a recommendable thing. Furthermore, recognizing Biden even to his last speech was a heart of appreciation depicted in the topmost office. Similarly, Obama seemed likeable by many people from Hawaii to Chicago and the entire United States of America. The last speech when he bid the electorate a goodbye he recognized and acknowledged the love from the hearts of Americans. People turned up in large numbers and celebrated Obama- a show that he was a preferred leader to many.

Political leadership requires people who are selfless and those that care for their subjects. The United States of America are not all blessed with wealth and sufficient natural resources to care for the populations inhabiting them. Obama is one of the individuals who were born in the state where most people survived in poverty.

People in the Latino Townships are still facing the jaws of poverty. Poverty and healthcare are inversely related as the poor tend to suffer from many infections that could otherwise get healed if the household is well-endowed. Barrack Obama, in his reign, implemented different strategies to ensure healthcare services are accessible and cheap universally.

The implementation of the Obamacare Act in 2010 is a sure act of care to the residents of the U.S. that are underprivileged. Most political leaders forget their origin, but Obama did not forget the people assuming the conditions that he was once living in and that is why in all his speeches he acknowledged supporters from all backgrounds.

Besides, Obama proved a transformational leader in the United States and beyond. A transformational leader allows the leaders under them or their helpers to point out mistakes and suggest the needed change through inspiring people. Obama was one such leader during his two terms of presidency. For example, he condemned many global leaders who forcefully grasped power without minding about their subjects and the challenges that aristocracy brings in society.

Obama used integrity and remained conscious as a transformational leader- an aspect that made him propel the economy and motivate other leaders to emulate his leadership skills. It is through this transformational power and charisma that made Obama a wave in the entire world and the United States campaign. He truly fulfilled the Luther King prophecy by becoming the most influential black president of the U.S. and winning many people to his camp during campaigns and during his period as president.

Obama was a cross-cultural-global political and envisioned manager. He was able to re-unite America with the rest of the world- and image that Bush tarnished during his reign. Bush set policies that isolated the U.S. from the rest of the world with the claims that safety of America was important. It is during this reign of Bush that most Islamic States felt isolated and unwanted by the superpower- a move that increased terrorism and attacks of the American offices elsewhere in the world.

It is the same thing that the U.S. is experiencing in the current regime with the isolation of Mexico, Iran, Iraq, Yemen, and Somalia among other economies. Conversely, Obama assumed a different strategy of cross-culture.

He assumed and was sure that this strategy could yield fruits for America and for other economies. Obama took to leadership and in the first two years he reconciled the Middle East, China, and Russia and gave them an award for the approaches of peace-keeping. Besides, Obama stoop low and was down to earth for the benefit of the Third-World economies.

For example, he visited the feared Vietnam and ate with people. Obama signed grants for other economies that were previously neglected and prolonged the African Growth Opportunity Act (AGOA) to enhance development of the African countries that exported to America. The United States of America benefited from the bilateral policies set by the president and the business opportunities grew through in-shipping and import-export strategies.

In conclusion, these among other actions by Obama indicate that he was a global leader. The use of his personality traits and the quotes he made during his speeches helps to explore him better. He emerges as charismatic, ambitious, selfless, and sell-confident. Obama is one man that will probably become an advocate of peace and justice even after his retirement from presidency.

He stocks to the truth, loves humanity, supports development, and condemns dictatorship. No leader that lacks flaws and that is why criticism about his approaches to unite the Middle-East and his desires to restore peace by killing the gang-leaders of terror groups were criticized through the approaches that the security department used.

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Education and Income Inequality

Table of contents

This paper will have details on how a country can measure income inequality. The paper will have details about how unemployment and economic growth effect of income inequality on the U. S. economy; guesstimate the gap of degree holder and those that do not.

Gaps that lay between the educated and non-educated workers with telling if higher education opportunities increase will reduce income inequality. Last give an opinion of other jesters U. S income inequality to widen. Money and crime is a big problem therefore higher education stent for the unprivileged.

Measure Income Inequality

Measurement of a country income inequality according to Amacher & Pate, the Gini coefficient is a mutual amount of income inequality. Income inequality is what tells the slit with money and the others. Since Gini coefficient usually have a series from 0 to 1. 0 is having the equal income and 1 is when one individual brings in the income as a culture. A better explanation of this is the Gini coefficient have the numbers among 0 and 1 but there is also a Lorenz curve which is a perfectly equal income with persons with the same income and is not guaranteed.

Unemployment

The effects of income inequality in the U. S. starting with unemployment. The explanation of unemployment is simple if one do not have a higher education most likely joining the unemployment community is probably going to happen. It is said in most poorer households the income and employment is low whereas the unemployment rate is high. In research it shows people of color have high unemployment rates due to higher education is just not in the household numbers.

The poorer households income statics sometimes do not allow their children to get an education more less a higher education so that leads to just a job then follows the known not working or the street of thug life or the line to unemployment. Now according to Strauss (2011) based on the recession, “ the lowest unemployment rate being 7%, and the highest reaching 15%. If you have a four-year college degree and at least some graduate school, recessions have been mild — with current unemployment rates of 4.5%, compared to an overall rate of 9%” (Strauss, 2011, November 2, para. 4).

Growth

Growth explanation comes with spending in the economy. Buyers buying items help grow the economy in doing so it said that during the recession the expenditure failed by 70 percent. When the growth got reinstated over the years 5 percent of income was reported. “ Households making more than $166,000 a year”( Fletcher, 2014, January 24).

Just know at the end of the day if growth is wanted spending has to happen but employment is a must therefore more jobs in the economy is needed because everyone cannot live off inheritance, a demand have to be in play. “ incomes diverged between 1980 and 2007, with those at the bottom seeing annual increases of 2.6 percent, while income growth for the top 5 percent accelerated to 5 percent a year”( Fletcher, 2014, January 24).

The Gap

Some of the other factors that fall under income inequality is workers not getting paid enough and things such as contracting jobs out. For example look at the nursing community, they have traveling nurses come in and paid them top dollar and some employers will not pay their full time workers overtime or holiday pay wanting to save money. Not to mention the discrimination, it was a problem back in the day but it is still a front factor today. “Government can help combat discrimination both with antidiscrimination laws and with equal treatment for government employees regardless of race or sex” (Amacher & Pate, 2019).

The gap for bachelor and higher holders versus those without. First it start with trying to get a job, and it is a selected few to choose from that will hire without a higher education. The pay is even different from having a high diploma to have a bachelor degree although it is successful candidates that made millions who dropped out of college but there are many frauds who has higher education.

The studies not 100 percent right but common sense tells the story that higher education get better job opportunities in turn invest in their children prepare for a higher education but the gap lapse because the poor cannot help the poor but help lift each other up or a miracle come through. Now the government could step in and get more involved to help with a better education plan for the less fortunate.

As stated by, Gould, “The workers with the credential that should be in high demand—four-year college graduates—have not done that well. Workers with a four-year college degree saw their hourly wages fall 1.3 percent from 2013 to 2014, while those with an advanced degree saw an hourly wage decline of 2.2 percent” (2015, February 20).

Conclusion of this matter, After measuring a country income inequality and the effects such as unemployment, economic growth, and other economic gaps between higher educators and those of none. The Gini coefficient is the known to find the income inequality although it is other ways to do so. With income inequality monitoring households in all communities the gap that lay between the educated and non-educated workers the money and crime being a big problem helping getting education and even a higher education for the unprivileged will close that length between.

Reference

  • Amacher, R. and Pate, J. (2019). Principles of microeconomics (2nd ed.). Retrieved from https://content.ashford.edu
  • Choi, K. P. (2016, May 30). Income inequality and the earnings gap between educated and non-educated workers (Links to an external site.)Links to an external site. [Blog post]. Retrieved from https://www.ashford.edu/blog/career-tips/income-inequality-and-the-earnings-gap-between-educated-and-non-educated
  • Fletcher, M. A. (2014, January 24). Income inequality hurts economic growth, researchers say (Links to an external site.)Links to an external site.. The Washington Post. Retrieved from https://www.washingtonpost.com/business/economy/income-inequality-hurts-economic-growth-researchers-say/2014/01/24/cb6e02a0-83b0-11e3-9dd4-e7278db80d86_story.html?noredirect=on&utm_term=.fef6d29b2199
  • Gould, E. (2015, February 20). Even the most educated workers have declining wages (Links to an external site.)Links to an external site.. Retrieved from https://www.epi.org/publication/even-the-most-educated-workers-have-declining-wages/
  • Sherman, E. (2014, Dec 9). Income inequality hurts economic growth (Links to an external site.)Links to an external site.. Forbes. Retrieved from https://www.forbes.com/sites/eriksherman/2014/12/09/income-inequality-hurts-economic-growth/#5070548f591a
  • Strauss, S. (2011, November 2). The connection between education, income inequality, and unemployment (Links to an external site.)Links to an external site.. Retrieved from https://www.huffingtonpost.com/steven-strauss/the-connection-between-ed_b_1066401.html

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Economic Growth and Income Inequality

Studies on the relationship between income inequality and Growth initiated from the pioneering research by Simon Kuznets (1955) where deliberated economic growth and income inequality and came up with a hypothesis that is currently called as the Kuznets hypothesis or the inverted U-Curve. The Kuznets hypothesis formed the foundation from which most early studies analyzed the relationship between income inequality and growth. Kuznets (1955) assumed that in the initial stages of economic Growth, both a nation’s economic growth and its inequality increase.

As countries grow and develop, the income gap between the rich and the poor should decrease. Indeed, according to Kuznets, there is a slow change from a low-inequality, low-income, agricultural economy, towards a high-income and medium-inequality economy characterized by industrial production. This shift would lead to the inverted U-shaped relationship between real GDP per capita and inequality.

Kuznets says that in the initial period, agriculture represents the majority of a country’s economy, which is also characterized by low levels of inequality. According to Kuznets, a shift towards the secondary and the third sectors has in nature two effects in the short term. The first effect is that it speeds up economic growth leading to higher levels of GDP per capita. The second and most dramatic effect is that this increases the level of inequality.

Accordingly, in the initial stages of economic Growth, the level of GDP per capita and inequality are positively correlated. As countries develop they shift more and more resources from agriculture to industry (and later to services), and this will in time decrease the income gap between the industry and agriculture simply because there will be more and more workers working in the industrial sector. So, the long run relationship between inequality and GDP per capita is negative. The Kuznets hypothesis therefore showed connection from Growth to income inequality.

Some researchers shown support to Kuznets Hypothesis e.g. Oswang, (1994); Milanovic, (1994); Fishlow, (1995) as well as Ali, (1998), Banerjee and Duflo (2003), Perotti (1993) and Aghion and Bolton (1997) and examined the relationship between income inequality and output growth with the inverted U-shaped hypothesis. And agreed with Kuzents In the initial stage of development, the rich is getting richer but the poor is getting poorer in the presence of imperfect market.

However, Robinson (1976) mentioned U-curve has been observed in both developed countries and modern developing countries by using cross sectional data. This is because in the study of Robinson (1976), Kuznets process is analyzed with the existence of within-sector inequality. Based on the study of Shahbaz (2010), the Kuznets’ inverted U-curve in Pakistan is existed. In addition, income inequality and economic growth have co-integrated movement in long run (Khattak, Muhammad & Iqbal, 2014).

Though various research have found some support for the Kuznets hypothesis but some studies such as Ahluwalia, (1976); Bruno, Ravallion and Squire, (1995) and UNCTAD, (1997), found no such relationship between growth rates and income inequality. Deininger and Squire (1996) also did not find any evidence for the existence of such (Kuznets Relationship) a relationship between development and inequality. This shows that not all economies follow the inverted U-Curve hypothesis during their development path but Kuznets theory marked an important starting point for many inequality studies that followed.

Delbianco, Dabus & Caraballo, (2014) they studied the linkage between the inequality of income distribution and the economic growth of 20 Latin American and Caribbean countries from 1980 to 2010. The study finding shows that the relationship between inequality and economic growth mainly depends on the different income levels. It means the evidence is “approximately heterogeneous.”

In common, inequality is dangerous to economic growth. But, when we are speaking about richer countries’ income, higher inequality motivates economic growth, and it means at a higher income level the negative effects of inequality are alleviated and the relationship becomes positive. The evidence suggests that progressive redistributive policies in favor of poorer strata of population help economic growth in lower income economies and the stage of development of each country matters for the analysis of the economic growth.

Barro (2000) also uses panel data, but finds both a negative and a positive effect depending on the development of the country. With a low GDP per capita inequality has a negative effect on growth, while the effect is positive when GDP per capita is high in other words Concludes that the effect of income inequality on economic growth is different contingent on the state of economic development. Income inequality in poor countries retards economic growth, but income inequality in rich countries encourages economic growth.
Deininger & Squire (1998) also support Barro (2000) finding, stating that initial inequality reduces income growth for poor, but not for rich countries.

Fields (1989) examined if the saving of the richest people are more than the poorest, the capital accumulation to the poorest will decline and slow down the growth.
Tiwari, Shahbaz and Islam (2013) investigated the impact of financial development on the rural‐urban of Indian data for period 1995-2008 and found that the relationship is positive in the urban areas and negative in the rural areas.

Malinen (2012) Studied the Estimating the long-run relationship between income inequality and economic development by using of unbalanced panel of 53 coun¬tries and determined that there is a long-run balance relationship between growth and inequality, for developed countries this relationship is negative. Likewise, Abida and Sghaier (2012) they look empirical relationship between economic growth and income inequality for four north Africa nations namely (Tunisia, Algeria, Morocco, and Egypt) for the 1970-2007 periods. They indicated that the long-run growth elasticity of income inequal¬ity is negative.

Persson and Tabellini’s (1994) study presents that in unequal economies the governments would favor more redistributive policies. This in turn would affect incentives, and thus decrease growth. Inequality would thus hamper growth. Both Persson and Tabellini (1994), Alesina and Rodrik (1994) test this type of model and find support that inequality has a negative effect on economic growth correlation for democracies only.

Whereas Clarke (1995) obtains a negative correlation for both democracies and non-democracies. Keefer and Knack (2000) find evidence of a negative correlation between income inequality and growth, but this correlation becomes insignificant once a measure of property rights is included as a control variable. More recently,
Sirine (2015) stated that the relationship between income inequality and economic growth are negative in developing countries.

However, Forbes’s (2000) studied, using panel data on countries, finds in contrast to Persson and Tabellini’s a positive short term linkage between inequality and growth.
Beside this Partridge (1997) finds in contrast to Persson and Tabellini, that there is a positive effect of inequality on growth in the sense that the Gini-index is positively correlated to economic growth. Moreover, he finds no evidence that the income distribution has any strong effect on government policy. Hence, he concludes that the income distribution of the population affects growth through another mechanism than that of redistribution.

Li and Zou (1998) considered a more general theoretical framework found that income inequality is positively and most of the time significantly associated with economic growth.
Nguyen (2014), Nguyen (2015) or Le and Nguyen (2016) studied the link between economic growth and inequality of Vietnam By using Gini coefficients to represent income inequality, these authors analyzed the positive relationship between economic growth and inequality in Vietnam in recent periods

Panizza (2002) criticizes Partridge’s Finding. Using a similar data on U.S. states, with unlike conditions, but finds no evidence of a positive result of inequality on growth. Instead, he finds weak evidence of a negative result. In addition to Panizza, Stewart and Moslares (2012) studied the Indian states for the period of 1980-2010, and demonstrated that income inequality affects growth negatively, and achieve that regional Gini coefficients affects the growth rate negatively, by means of the literacy rate and the coefficient of variation of the growth rate as control variables.

Similarly, Abida and Sghaier (2012) they look empirical relationship between economic growth and income inequality for 4 countries in North Africa (Tunisia, Algeria, Morocco, and Egypt) for the 1970-2007 periods. They indicated that the long-run growth elasticity of income inequal¬ity is negative and significant more income inequality reduces economic growth.

Nahum (2005) in order to test how inequality affects economic growth. She makes a study of data within Swedish provinces. She tests the result in 1, 3, 5, and 10-year growth periods, from 1960-2000, using both fixed effects regressions and 2SLS regressions. She finds a strong, positive, and significant effect of inequality on economic growth in the short run of 1 to 5-year growth periods but by using long run of 10-year growth periods the effect is less significant and steady.

Surprisingly, Banerjee and Duflo (2003) found that higher inequality increases growth in more democratic society on the other hand growth decreases in less democratic cultures. Similarly Bjornskov (2008) considered the relationship between income inequalities and economic growth and found that it can certainly depend on the political ideology of the government which positive sign holds under conservative governments and the negative sign under liberal governments.

While Herzer and Vollmer (2012) analyzed the long-run effect of income inequality on income per capita by using heteroge¬neous panel co-integration techniques and used data from 46 developed and developing countries from 1970-1995. Consequently, they found a negative effect of inequality on income, both for the sample as a whole and for groups within the sample.

In regard to previous research, Voitchovsky (2005) focused on the effect of different parts of income distribution on income inequality. She also focused on using more measures for inequality than just the general measures, such as the Gini index. She tests her hypothesis, by studying 5-year growth periods for 21 OECD countries. She finds that inequality in the lower part of the income distribution affects growth negatively, while inequality in the upper part of the income distribution affects growth positively. Her approach is used in this thesis to validate the inadequacy of the Gini index in explaining the link to growth.

Fields (1989) stated that if the saving of the richest more than the poorest, the capital accumulation to the poorest will decrease and slow down the growth.
Barro (2000) theory’s suggested a positive effect and claims that inequality rises savings. This theory anticipated that the marginal tendency to save increases with income and that savings are equal or similar to investment. Thus under these assumptions a more unequal economy consists of more rich people and will grow faster, Because an unequal economy enhance higher savings and higher investments so, higher investments increase economic growth.

According to Helpman (2004), Tachibanaki (2005), Weil (2005) studies shown that the positive relationship between income inequality and economic growth might be explained as follows. In developed countries, the saving rate of rich people is higher than that of the poor. Income redistribution from rich people to poor people reduces the saving rate of the economy as a whole and thus could lead to a decline in economic growth. Another reason is that the income redistribution could lower the incentive for the rich to work hard, and that could also lead to an economic growth decline. As a result, we can infer that income equality makes economic growth lower, and income inequality makes it higher.

Meanwhile, the negative relationship between income inequalities and economic growth might be explained as follows. In developing countries, poor people are under credit constraint. They do not have the opportunity of investing, and extremely poor people in income inequality cannot even participate in product activity. Income inequality might lead to political and social instability, and consequently to economic growth decline. As a result, we can conclude that income inequality makes economic growth lower and income equality makes it higher.

Furthermore, Galor and Moav (2004) describe a unified theory that combines two contradictory approaches at different stages of the development process. Galor and Moav suggest that the classical channel dominates in the early stages of development, at which time physical capital accumulation is the main engine of growth.

However, the credit market imperfection mechanism starts to dominate in the next stages of the process, at which time human capital is the main source of growth. Finally, Galor and Moav suggest that both mechanisms dim with development. There are also other arguments that associate higher inequality with lower future growth. As an example, inequality may reflect polarization of power.

The wealthy may have incentives to lobby against redistribution, thus preventing efficient policies (Bénabou, 2000). Further, Galor et al. (2009) suggest that inequality may bring out incentives for the wealthy to hamper institutional policies and changes that facilitate human capital formation and economic growth. In a more general perspective, Bénabou (1996) argues that high overall inequality may give rise to sociopolitical instability, which in turn reduces growth.

However, Perotti (1993) said the economy’s income level affects this conclusion and illustrates that in very poor economies only the rich may be able to attain education, and inequality may correlate positively with investment in human capital.

Eventually, some researchers said that there is the chance of sociopolitical disorder in an unequal society. Nilsson (2004) stated that Income and wealth inequality can give incentives for the poor to participate in disruptive activities such as crime. These actions can even threaten the country’s political system, which may make a more insecurity in the country’s governmental institutions. Barro (1990) Contribution in such activities leads to a direct misused of resources that harmful to economic growth.

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Art Analysis of Underworld

The name of the artwork above is known as ‘Underworld’, it an illustration by Asaf Hanuka from Israel. The artwork is a form of a comic strip which is divided into 2 portions. The main concern shown is the contrasting states that children around the world are living in, this concept is illustrated by the division of top, and bottom portions of the art. Some children live in severe poverty while others are well off and unaware of the state that the other half of the world are in. The three core points that I’ll be emphasizing on are extreme poverty around the world, how child slavery is still a persistent issue in society and last but not least the ignorant minds of consumers towards the unethical practices of companies.

My first point is poverty around the globe. When referred to the artwork above, the top part of the art is brightly colored, and the bottom part is dull. The artist decided to use these colors because he aims to show the different living states of the kid in the first half and the state of the other 12 kids in the bottom half. Dim atmospheres are often used to show a feeling of discomfort and colorful scenes show the opposite. In this case, the discomfort that the children are experiencing is severe poverty. Poverty is an expanding issue as around 770,000,000 people are experiencing such obstacles and yet others are still unenlightened.

Besides the choice of colors, poverty is apparent in the image when we consider the sunken faces of the kids. The dramatic contours on their faces show that they have not had the opportunity to possess a nutritional life. This suggest that they have not had proper meals therefore causing them to lose body mass. Apart from that, redness around eyes and noses as shown on the kids’ faces can be indications that the kids are ill and do not have the convenience to visit a doctor. Furthermore, the evident dark circles around their eyes show clearly that they have not had enough and proper rest in a long time. Without enough food and sleep due to their inability to afford these needs, their health is at stake. The artist included these details in hopes to inform his audiences about the severity of poverty.

My next point is child slavery. In the comic strip, the kids in the lower half are representations of slaves. Slavery is the act of taking control and ownership over other people. Even though it is illegal, many around the world still violate this regulation. I believe the aim of including this in Asaf’s artwork is to inform his audiences about the cruel secrets that many companies attempt to hide. Children slaves are often forced to operate long hours in unpleasant working environments. When referred to the bottom part of the picture, most of the image is black and white except for the toy that is being assembled.

The lack of colors displays the unhappiness that the kids are dealing with. The toy is brightly colored as it symbolizes joy and excitement, feelings of which the 12 kids are deprived of. Radiant colors such as red, blue and yellow are often associated with the feeling of happiness. The absence of colors shows their misery and how childhood is stripped away from them. When observed carefully, the children appear to wear the same type of clothing and have closely resembling hairstyles. The uniformity illustrates the idea of someone with authority restricting their choices of appearance and the lack of freedom that they can choose to dress themselves. This shows that they are under control similarly to the lack of privilege that prisoners have. Therefore, I believe that the artist is trying to convey the message of them being in captivity like slaves.

The third point that I’ll be addressing would be how consumers are uniformed of the inhumane practices that many companies are performing. This is indicated in the top part of the image where the family looks contented and unaware about the history that the toy holds. It would only make sense that if consumers were well-informed about the firm’s immoral practices; they would not purchase such products.

The family in the colorful half of the picture looks affluent as there are stacks of unopened presents on the floor and the toy itself looks as if it was made in a well operated factory. There is no sign of the toy’s depressing past in the entire top portion of the art which ties back to the deceiving acts that companies carry out in attempt to erase their unethical techniques. There’re zero indications on the perfectly colored toy stating that it was once in the hands of slaves locked up in a factory. The artist included these details to educate the public that some companies still exploit slaves for production.

This artwork carries value to me as it acts as a reminder to me on how inequality is a common problem around the world and is a growing issue that needs to be settled. After giving much attention to this piece of art, I feel a sense of responsibility to research about the companies that I’ll be purchasing from in the future to prevent indirect support to slavery. This art is valuable to me as it makes me feel guilty that I might have owned a product made by slaves in the past.

I highly think that everyone should be enlightened about poverty, modern slavery and the crooked processes of companies nowadays so that we can combat these problems together. Artworks that incorporate social issues can educate and most importantly create awareness. Awareness leads to education then action finally solutions to these issues. The awareness of poverty and slavery is crucial so that society appreciates what they have and lend a hand to those who are enslaved or in extreme poverty.

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A Review of Just Mercy by Bryan Stevenson

Bryan Stevenson’s book Just Mercy examines the injustice of our world, particularly the legal system. Whether we may not commonly discuss about it, we all seem to understand how race contributes to unethical and bias laws. This corrupt world truly needs this book in order to explain why we still must protest and acknowledge equal rights despite the many reforms. This is exactly what author Bryan Stevenson, American lawyer, and social justice activist, did throughout his career. He utilizes the stories of many individuals such as Walter McMillan who was falsely convicted, and wrongfully sentenced. It’s evident that Stevenson portrays an ideal exemplification of demonstrating mercy, a feeling that is often absent within the lives of those living in an unjust system of social justice, is ignited.

Stevenson uses rhetorical analysis by providing a personal experience of political injustice and racial justice in America to demonstrate that the United States criminal justice system is extremely corrupt. By mentioning in his introduction how he was a young Harvard Law student, he improves his expertise and reputation simply by being involved and devoting his full attention to his cases. In the Walter McMillan case, Stevenson mentions how this case taught him that there is light within this darkness. He clearly witnessed many great and bad outcomes, which helped him develop a more positive outlook on upcoming trials. He pledges his entire will and professionalism to disseminate information, on the subject hoping that society will evolve by combating the corrupt ways of criminal justice. By analyzing his own experience with court cases and analytics that revolves around racial disparities he is informing others and providing sufficient evidence to show how there needs to be change.

Furthermore, Stenson was able to emphasize empathy and a sense of anguish in the defendants. He manipulates the reader’s emotions to have a greater grasp of the inequalities of the justice system. The narrative of Charlie is presented, a fourteen-year-old boy who was convicted and sentenced to adult prison and by creating sympathy from his audience, “He couldn’t complete his statement because he was weeping so hard. He grasped my jacket with a power I hadn’t believe he was capable of…” (Stevenson 124). This ultimately entails how this harsh procedure can be emotionally draining to defendants who lack proper care and usually deal with abuse in prison. In this case, he reflects on his responsibility and power to create meaningful reforms.

Stevenson’s mindset and determination throughout the book, indicates how every individual deserves justice even if they did something bad. He states “My work with the poor and the incarcerated has persuaded me that the opposite of poverty is not wealth; the opposite of poverty is justice” (Stevenson 18). Based on prior knowledge and experience he is able to resonate why certain people, especially minorities are usually taken advantage of. The under-represented are usually judged quickly based on their race, status, or class.

Police brutality and racial profiling are major issues that still continue to threaten the rights of individuals. The Lourida Ruffin, an African American case is one of the many cases that tends to get ignored and lost. He was stopped and beaten by police officers due to a minor problem which could have been handled in a more professional manner. Stevenson grieved with the family and understood that Mr. Ruffin, was an innocent man who didn’t have to suffer which led to a fatal death. Stevenson clearly takes every case seriously as he considers every flaw from this corrupt system. The author states “suicide, prisoner-on-prisoner violence, inadequate medical care, staff abuse, and guard violence claimed the lives of hundreds of prisoners every year” (Stevenson 37).

Even Stevenson was targeted and regarded with suspicion by police officers, due to the color of his skin. This incident helps the readers understand how not everyone can rely and trust on law enforcement. Instead of police officers seeking proper training on how to approach people; African American have to evaluate their own instincts, even if they are innocent Bryan Stevenson reveals many unlawful cases and does everything in his power to fight for those who lack certain resources to support themselves. Throughout his journey, he was able to establish mercy and justice. Just by explaining each case thoroughly, Stevenson shows his dedication and willingness to speak the truth behind the criminal justice system. Stevenson does a great job in delivering this theme of hope and resilience, which is why this book has made a great impact in today’s world.

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