i guess to start off, look through your notes or the textbook to see if there is anything that directly relates to the topic.
just saying, that topic is in chapter 10 of the dixon textbook, the market economy and so you can basically copy what it says into your plan
economic benefits
- incentive for further education to increase income
- incentive to work longer and harder
- incentive to make labour force more mobile
- incentive for entrepreneurs to take risks (to earn more. therefore inequality)
- potential for higher savings and capital formation (if everybody has equal income, propensity to save will be lower (since high income earners save a lot))
economic costs
- reduces overall utility (law of diminishing returns means that higher income earners derive less utility/happiness from each extra dollar consumed, therefore, the most utility yielding spread of income is perfect equality)
- inequality can reduce growth
- inequality reduces consumption and investment
- inequality creates conspicuous consumption (if you dunno what that means google it)
- inequality creates poverty/social problems e.g. drug use
- inequality increases welfare payments
social benefits
- very limited benefits (possibly a desirable social structure, but probably not a real benefit)
social costs
- social class divisions (may lead to instability e.g. working class revolts...more so africa caused by food shortages)
- poverty (vicious cycle which includes high crime, suicide, disease, reduced life expectancy)
Government policies would include anything to redistribute income to poor (progressive income tax and social welfare), policies which reduce the vicious cycle of poverty, more opportunity for everybody (e.g. free education etc.)
make a plan around that and don't think too much about it, remember to address each point in detail, for example, expand upon why there are limited social benefits, otherwise you won't be addressing the question properly. if there is anything that you think is a large factor that should be discussed more so such as how inequality causes more welfare payments, definitely discuss it further. things that you may not want to really expand on such as, how inequality is an incentive to work harder and longer, would be difficult to expand on and obvious so you dont have to go into depth there. it may be contradictory to what peers say, but unless you have a realllly good idea of what you are talking about, leave your introduction for after you have done your plan. without planning first, you will be wasting important space in your introduction on incoherent junk that you will probably have to re-edit later. with a plan constructed you should be able to structure your introduction and essay well. if you follow a plan when writing, you will write with a clearer train of thought, much faster and will not deviate from the question at hand.
thats what i would do anyway.
