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Impact of Economy on Low Income Communities

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1. Introduction

This assignment is about increasing inequality and its impact on low income communities. Measurement of the distribution of income that between individuals or households, making most of the income in a given country and those making very little. I will give out the real example and real cases refer to the Malaysia. Answer the entire assignment question.

Question 1


According to the scenario income inequality increasing in US due to the various variations particularly the high impact of technology involvement in different sectors. The sudden technological development brings the big gap between high income communities and low income communities. According to the census reports income inequality is decreased during 1947 to 1968 by7 .5%. Whereas during 1969 to 1009 the trend is different so this is the big trend due to the technology growth in various sectors (Bligh, & Philip, 2004)

On this aspect organizations are looking high knowledge and high skill people and providing high income so the educated with high skill are achieving high income. So that the organization growth also increasing. To avoid the above situations the organization authorities as well as governments introduce schemes, policies to reduce the gap between high income community and low income community (Gentle, & Michael, 2011)

So the government must provide proper educational support, trainings to motivate the low income communities to reach better position. The other opinion the government also implements schemes to provide household items to satisfy the low income communities so that it will reduce the differences from high income communities (Wilkinson, & Harry, 2010)

1.2 Real Causes

Labor market situation is one of the cause because products producing with high technology so that organizations provided high wages opportunities. This technological change trend is due to global competition affect so there is a big variation in wage systems in Malaysia (Peel, & Jeffrey, 2008)

The second cause is due to the social issues impacted towards income inequality influenced low income communities. The Malaysia social issues also influence organization developments and growth so that the organization authorities emphasize on technological change to produce products according to the international standards. The income inequality along with social causes translates life styles of individuals in low income communities at Malaysia is a big impact because the low income communities not affordable the household things as per living system (Stephen, Robbins & Neil Barnwell, 2006)

The third cause is due to the race issue, wealth, identity and location influencing the income inequality impacts on low income communities Malaysia. The race discrimination impact is more so that there is a big gap between high income communities and low income communities at Malaysia. The income inequality with its economic variations due to gender is the major cost (David, 2009)

1.3 Real examples

Figure 1 shows the Malaysia income inequality stands at 46.21%, this indicates the income inequality is an issue because of race issue. Malaysia is strong in tourism and manufacturing sectors but still due the race discrimination influencing the income inequality so it’s a big impact on low income communities (Bligh, & Philip, 2004)

Figure 1: Malaysia inequality

Source: www.economic Planning.pdf

Figure 2 sows the income inequality due to different race situations at its effects. The income inequality is also creating the social balance in Malaysia. This is also affecting the economic condition in Malaysia (Wilkinson, & Harry, 2010)

Figure 2: Coefficient of Malaysia

Source: www.economic Planning.pdf

The Malaysia income inequality towards low income community must solve because to controls the social impacts labor market issues and low income community wealth point of view so the government authorities to take action with proper budget allocate to provide education, training to low income community. So it is understands that the gap must be solve because to reduce social problems among low income communities. It also helps the low income community wealth and health of living styles and environment.

Muziliza, (2012) Malaysia putrajaya must stop being in denial about wealth inequality and realise that hardship and poverty are also fuelling corruption, said the Sultan of Perak, Sultan Nazrin Shah, he said the low earnings of a vast majority of households and noted that those struggling to make ends meet were exposed to petty corruption.

Farhana R (2013)Coloured discourse on inequality in Malaysia, It was quite a clever title putting the right undertone to a heavily "coloured" discourse on inequality in Malaysia.

Imbalances and inequality that have resulted in the past, persisted over time, or even taken different shapes and sizes, is very much felt on the ground, even if we don’t know enough to call it "inequality" the same way inequality is studied by academics and policy makers across the globe.

Question 2

2.1 Community Organizers Importance

The community organizers role is important to understand (Wilkinson, & Harry, 2010) growing issues. Because the organizers must be supports to the governments to organize a schemes, programs and other method to supports the low income community groups. (Stephen, Robbins & Neil Barnwell, 2006)

The organizers collect the proper information from the industrial authorities to encourage the low income communities towards improving skills and knowledge so that the low income group differences will be reduced form high income groups communities. (Bligh, & Philip, 2004)

Community organizers also change the environment by understanding individually, group so that it brings big changes with support of government policies and regulations. So the major requirement is education as a prime development for low income group (Peel, & Jeffrey, 2008)

Question 3

3.1 To know about the impact of these changes?

As per the scenario the community organizers identify the issue clearly develop proper plan to solve the impact on the changes. Even though the manufacturer provided proper resource to retailing the workforce but the wage impact is an issue so the agencies as well as organizational authorities must be implement to support work force in terms of cost of living by providing subsidy system.(Wilkinson, & Harry, 2010)

The manufacture authorities are the responsible to support workforce wage imbalance for living style so that must provide proper discount price products for workforce. In addition to that encourage the workforce to increase production by issuing incentives (Gentle, & Michael, 2011)

3.2 what is being done to address?

Address towards community organizers are also responsible to identify the issues as method above impacts on low income communities such as gender discrimination. The gender discrimination also brings a big wage gap between the groups. So the community organizers identify the issues to organize tops with government authorities, organization authorities to simplify the issues.

Community organizer also identify the current situation in U.S on the gap to solve by proper organization authorizes implementing support systems through organizing a special trainings to improve towards technological skills so that it will helps to the low income community groups.

3.3 Who would you talk?

U.S government are the major responsible to raise of income inequality, so the authorities must identify the strategy of income distribution, identify the labor mobility, identify the technology change like skills based approach identify the high income group inequalities and inequality geographically as shown in Figure 3.

Figure 3: Inequality status globally

Source:http://www. http://www.businessinsider.com/why-income-inequality

The governments are the responsible to measure the differences at various levels in income distribution and its weakness for example gender differences in inequalities is affected towards women community. So the governments are the responsible to argue with organization on minimum wage affects towards women services at different levels.

4. Conclusion

In this assignment conclusion community organizer approach must understands that the income inequality impacts low income community is due to various factors such as political , economic, technological , social and ethical issues, so the community organizers request authorities are to identify the issues such as technological must support to the low income community to bring up better position in wealth.

5. References

  1. Foss, M & Bryan, M (2012), International Global Services, London; Milford, CT: Kogan Page,pp12-325.
  2. Gentle, K & Michael, G (2011), Globalization Behavior Principles handbook: building realistic expectations and managing Risk. London: Kogan Page, pp45-121.
  3. David, C (2009), Introduction Global Environment Boston, MA: Springer, pp9-126.
  4. BusinessDictionary.com, (2014). What is income inequality? definition and meaning. [online] Available at: http://www.businessdictionary.com/definition/income-inequality.html [Accessed 6 Oct. 2014].
  5. Stephen P Robbins and Neil Barnwell, R (2006), Global Environment Theory, Australia: Pearson Education, pp12-276
  6. Bligh, B & Philip. U (2004), Global Environment Policies, Hoboken, N.J.: Wiley, pp23-62.
  7. Muziliza, (2012) Malaysia putrajaya must stop being in denial about wealth inequality and realise that hardship and poverty are also fuelling corruption, from: http://www.themalaysianinsider.com/malaysia/article.
  8. Farhana R (2013). Coloured discourse on inequality in Malaysia, It was quite a clever title putting the right undertone to a heavily "coloured" (racial) discourse on inequality in Malaysia. From http://www.themalaysianinsider.com/books/article/coloured-discourse-on-inequality-in-malaysia

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