Income Inequality as a Social Issue: Effects on Society and Political Stability

Running Head: SOCIAL SCIENCE 1
Social Science: Income Inequality

SOCIAL SCIENCE 2
Introduction
Over past few years, the issue of income inequality has dominated several parts of the world and
Singapore is no exception. It has outpoured populist sentiments in United Kingdom, United
States and different locations in Europe. To deal with this issue, Singapore government has
introduced various policies and measures, like; improvement in Gini coefficient. Gini coefficient
is the most used factor to measure distribution of income among the residents of country. These
measures and policies have improved the situations in the country and decreased income
inequality (Mukhopadhaya, 2014). This essay includes discussion about income inequality as a
social issue and how it affects other social issues in the country. Furthermore, it includes key
theories and concepts of sociology and political science and how the issue of income inequality
can affect the political stability of country.
Income inequality
In today’s world, one of the most significant issues is income inequality and it causes some other
social issues in the country. These issues have large impact on developed nations and affecting
the country’s government and economy. Income inequality is a factor that indicates the unequal
distribution of individual and household income among different individuals in a country’s
economy. It is generally shown as % of income to % of country’s population. In a country,
income inequality is considered as a social issue because it affects the social life of people and
other related issues. In the year 1999, income equality worsened because of economic slowdown,
which resulted in greater unemployment and re-employment at lower wage rate (Galor, 2009).
Singapore has experienced the issue of income inequality together with the high growth. It
recorded constant growth in GDP of 6% to 7% in the period of 1990s and 2000s. In the same
duration, Gini coefficient increased from 0.43 to 0.47. This growth raises a question in
Singapore, i.e. “is income inequality driver of growth?” Now the situation has improved and
inequality was narrowed lately as compared to previous 17 years. After reading the given article,
it can be stated that income instability can be considered as social issue, as it affects the social
problems such as education, employment, religious and racial instability, poverty, minimum
wage rate etc. It is harmful for the society as it places the population in a hierarchy that enhances
status competition, causing stress and directing the people to poor health and other adverse
results (Ling, 2017).

SOCIAL SCIENCE 3
For example, a major aspect of income inequality in the country is the racial bias in income
groups. According to the studies, Malays in country have lowest societal bands in income
distribution. Government was focused on meritocracy and created opportunity equality in
education and left the results on capability of individuals. Most of the Muslims were from poor
and low-educated families. They had fewer opportunities for development and they poorly
performed in schools and colleges. It ultimately offered them lower paying employment
opportunities. It has raised racial and religious conflicts in the country and resulted riots in multi-
religious and multi-racial society of Singapore. Thus, it has created problems in society and
affected their personal lives also. Furthermore, it is the major reason behind discrimination
among society. There are so many nations, where there is the pay gap for men and women. In
this way, income inequality is creating various social issues all over the world (Guidetti, &
Rehbein, 2014).
To understand the causes of income inequality, conflict theory of sociology can be taken into
consideration. Social conflict theory is a significant perspective that is given by Karl Marx.
Conflict theory looks at the social life as a competition and emphasizes on distribution of power,
different resources and inequality. Under this theory, Karl Marx viewed the society as a field of
inequality, which generates social changes and conflict among people. First, the conflict theory
states that different aspects of society come through conflict between different groups. These
groups compete to develop rules and regulations of the society (Lee, & Morris, 2016). From
these groups, when a particular group wins, it becomes able to take the society up in a way,
which it wants. By analyzing this, it can be said that income inequality arises because of conflict
between poor and rich people.
Furthermore, conflict theory states that society is a fight between the strong people and
disadvantaged people. For instance, Singapore has employed the policy of meritocracy, which
has provided the growth opportunities and education to the deserving people only, so that they
can attain greater objectives for society. As an outcome of this, economic well-being of an
individual is totally dependent on hard work and capability (Ling, 2017). According to conflict
theory, this issue generated difference between hard working and marginal people and eventually
it has resulted income inequality in the country. This policy in the country has influenced the
social dynamics in two different ways like; labor markets in the country separated the well-paid