Source: Katarina Krempova¸ PKF Malta¸ 9 December 2011

Will economic problems escalate? Let’s have a look at them: dramatic deterioration in the global economic situation¸ various institutional and financial problems¸ turmoil on the financial markets¸ slower global economic growth¸ increasing unemployment¸ debt problems¸ inflationary pressure¸ bank failures and also growing income inequity.

It is unfortunately the case¸ that the rich become richer and richer¸ and the poor become poorer and poorer.  A recent OECD study shows¸ that the average income of the richest 10 % of the population is about nine times that of the poorest¸ that means a ratio of 9 to 1. Obviously¸ this ratio varies from one country to another.

 

The main reasons behind this gap:

• globalisation¸
• technological progress¸ advances in ICT and the need of highly skilled and educated workers¸
• the distribution of market and capital income¸
• changes in the structure of households¸
• regulatory and policy reforms¸
• significant structural changes driven by  closer integration of the world¸ etc.

 

The clear message of this study: People should invest in good education to have a better chance on the labour market and to ensure better income for them in their future.

To learn more about it¸ click on the following OECD study:

Image source: Teaching Kids News