ECONOMIC IMPACT OF INCOME INEQUALITY IN GEORGIA

Abstract

Inequality in income distribution is an acute problem for the population in both developed and developing countries, since it is a prerequisite for sustainable socio-economic development of the country. However, the world does not have a completely equal society with income distribution, which is neither desirable nor achievable. Proportion is important here so that there are no extremely poor and extremely rich. It is the state that is obliged to ensure the creation and improvement of living conditions for its citizens. Unequal income distribution is complex and particularly includes unemployment, the main cause of which is an unstable political environment and an unskilled labor force.

Society in Georgia faces the critical issue of socio-economic inequality. Economically, a significant part of the population is unemployed and has low purchasing power. which makes possible the risk of confrontation and internal collapse of society, since people should be able to obtain more utility and prosperity from their own labor for their existence, and when there is an uneven distribution of income and they cannot even receive a living wage, of course the political hype manifests itself in the literal sense, Therefore, the elimination path requires government intervention as it must implement fiscal policies that will reduce inequality in income distribution in the long run and lead to equality. Such a country will be rich, stable and united.