Is “income inequality” a problem? According to Britannica, “income inequality, in economics, significant disparity in the distribution of income between individuals, groups, populations, social classes, or countries. Income inequality is a major dimension of social stratification and social class.” According to International Monetary Fund, “Excessive inequality can erode social cohesion, lead to political polarization, and lower economic growth.” I think that this is enough information to know that income inequality is a problem if it is used regularly.
What have been the effects of foreign aid programs, such that virtually everyone was describing them as failures by the 1990s? According to edubirdie.com, one of the negitive effects of foreign aid is “Increase dependency-less economically developed countries (LEDCs) become more dependent on donor countries and become heavily dependent, which causes the economy the stay at equilibrium” Here are some more disadvantages according to javatpoint.com “Exhaustion of Vital Resources. Has an impact on the domestic industry. Lopsided economic growth. The Dangers of Dumping. Reliance on foreign countries. Opposition to national defense. Economic planning and unpredictability. Legal inconsistency.”