Policy measures for reducing income inequality in LDCs
- Adoption of progressive taxation. High taxes should be imposed on the rich and the income earned from such taxes should be used to subsidize the poor.
- Land reforms. Land ownership and use should be changed from individual ownership to communal ownership system so that poor people can have access to productive land and generate income
- Price controls. Government should fix maximum prices to basic goods and services.
- Minimum wages polity of setting and maintaining high minimum wages to increase incomes of the employees.
- If the private market fails to provide enough jobs to achieve full employment, the government must become the employer of last resort.
- When growth is below capacity and the job market is slack, apply fiscal and monetary policies aggressively to achieve full employment.
- Modernization of agriculture. Agricultural sector should modernized to absorb unemployed educated people.
- Infrastructural development throughout the whole country to allow everybody to participate in productive activities.
- Rural development policies such as rural electrification schemes to encourage rural development and curb rural-urban migration.
- Education reforms that encourage job makers rather than job seekers.
- Fight corruption and embezzlement through anticorruption agencies.
- Formation of credit scheme to provide initial capital to businesses.
- Level the playing field for union elections to bolster collective bargaining while avoiding, at the state-level, anti-union, so-called “right-to-work” laws.
- Price stabilization to stabilize real wages
- Population control measures aimed at reducing the high dependence burdens and diminishing returns in agriculture and increase income per capita for farmers
- Decentralization of regions and delocalization of industries ensure even development of the country.
- Promote political stability to encourage investment
- Liberalization of economy to encourage people to freely participate in economic activities as a way to boost their income
CATEGORIES Economics
TAGS Dr. Bbosa Science
