Addressing inequality

Two recognised main areas of macroeconomics are long-term economic growth and short-term business cycles. Macroeconomics helps evaluate the resources and capabilities of an economy, churn out ways to increase the national income, boost productivity, and create job opportunities. In recent decades, inequality has emerged as a core issue in economic development and growth. Human capital is seen as a primary factor in increasing productivity. A number of recent international corroborative studies have also established that countries with more inequality perform poorly — there are multiple ways in which inequality has adverse economic, social and political consequences. Multi-faceted inequality “has become the defining issue of our time”, say analysts at Business Recorder. There is a growing global consensus that everyone should have equal access to economic opportunities.