The Social Consequences of Income Distribution—Are Increasing Company Profits a Threat to Economic and Social Stability?
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Publication date: 2017-06-20
Polish Sociological Review 2017;198(2):203-218
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ABSTRACT
The aim of this text is to show that unusually high levels of company profit should not be treated as
a sign of a healthy economic situation but rather of a growing socio-economic imbalance. Huge profits are caused
by the structure of many global markets—multinational companies often dominate markets and depress local
competitors. The decline in household revenues and public budgets has led to ever larger public and private
debts. At the same time, economic policy, which is determined by current politics, has contributed to a growth in
income inequalities and social imbalances. The tax system has become ever less progressive and the structure of
the financial market has become highly procyclical. The data analyzed in this text comes mainly from advanced
economies, but it is clear that income distribution is one of the most important challenges facing the entire global
economy.