Poverty A Economic Disparity Between The Rich And Poor

An impoverished nation forms when there is great economic disparity between the rich and the poor. Adam Smith reflects on the income gap in his quote: â€Å"No society can surely be flourishing and happy, of which the far greater part of the members are poor and miserable.† Due to Saudi Arabia’s vast oil wealth, there is a large amount of the population who live well and fruitful, but more than 20 percent of the population lives in crippling poverty (Baker, 2013). Poverty is usually defined in either absolute or relative terms. Absolute poverty refers to the standard of living, which is reflected in satisfying the needs for basic survival (Rahim, Abidin, Ping, Alias, and, Muhammad, 2014). Relative poverty is reflected in the income gap between the rich and the poor (Rahim, et al., 2014). The study of poverty is often linked to globalization, and the effect of globalization on the world’s poor is highly debated (Rahim, et al., 2014). This paper will discuss the ov erall effects of the income gap, both positive and negative views of globalization on poverty, and an analysis of Adam’s Smith quote in relation to the income differences between the rich and the poor. The gap between the wealthy and the poor citizens of a country has an influence on the health, wellness, and overall economic growth of a nation. Saudi Arabia Economy Saudi Arabia has developed into a wealthy nation over the last 30 years due to the export of oil to other countries around the world (Sullivan, 2013). TheShow MoreRelatedAnalysis Of Walzer, Pogge, And Sachs Approach On Global Economic And Social Justice Essay1317 Words   |  6 Pagesanalysis of Walzer, Pogge, and Sachs approach on global economic and social justice In our modern age, the introduction of a global economy has led to a varying degree of achievements ranging from technological advances, higher life expectancies, and even the introduction of new world powers. 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