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Social Inequality and Cost Efficiency: Ambiguity of Interrelation

Annotation

In this article authors showed that it is necessary to distinguish growth of social inequality at high social mo-bility (mobility on income) and growth of social inequality at low social mobility (mobility on income). Growth of social inequality at high social mobility demonstrates effective action of a market mechanism at which, as a rule, the person reaches a high position in social hierarchy of society by means of competition for receiving high income and property, there is a growth of the human capital, increase in welfare of both a rich and poor part of society. Now in the world economy there is a growth of social inequality at decrease in social mobility to a large extent that leads to growth of welfare only of a well-founded part of society. It causes recession of cumulative demand in economy, narrowing of reproduction of the human capital as major factor of production of innovations, decrease in motivation to work that in general demonstrates falling of cost efficiency of a national system of managing and the world economy in general. Authors proved need of state regulation of economy in the field of the distributive relations on the following target reference points: decline in yield of the financial sector by means of taxation and imposition of restrictions in the sphere of financial speculation, accounting of all financial assets of a well-founded part of society for the purpose of prevention of evasion of taxes, revision of a system of assessment of work, providing conditions for equal access for citizens to services of the social sphere (education, health care, culture, etc.), to employment.

Keywords

Social inequality, inequality by income, inequality by property, cost efficiency, economic growth, sustainable development

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DOI

10.20310/1819-8813-2018-13-104-135-140

UDC

316.4

Pages

135-140

References

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Section of issue

Social and Economic Outlook

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