Income inequality and poverty rising in most countries

As reported again by the OECD (Organization for Economic Co-operation and Development) the gap between rich and poor has grown in more than three-quarters of OECD countries over the past two decades. A finding that has been disputed by the Bush government over the last eight years.

The OECD found that the economic growth of recent decades has benefitted the rich more than the poor. In some countries, such as Canada, Finland, Germany, Italy, Norway and the United States, the gap also increased between the rich and the middle-class.

A key driver of income inequality has been the number of low-skilled and poorly educated who are out of work. More people living alone or in single-parent households has also contributed.

In developed countries, governments have been taxing more and spending more on social benefits to offset the trend towards more inequality. Without this spending, the report says, the rise in inequality would have been even more rapid. However, John McCain and other Republicans have been disputing such finding. They believe that lower taxes and less government spending on social benefits will help the economy and eventually lead to more equality. Who should we trust more, a government whose interest lies with the wealthiest or a study of a well known organization?

As one of the key solutions to this inequality, the OECD named better education. Better education is also a powerful way to achieve growth which benefits all, not just the elites! This principles are shared not only by many others who are concerned with this inequality but also by Barack Obama.