Abstract
While considering the poverty line in France, it is amazing to note that the current statistics has revealed that nearly 4 million people are homeless in France. This kind of an alarming and unmatched growth pattern is also visible across some Asian countries. Despite this poverty issue that exists in France, a contradicting situation also persists where myriads of trendy cars such as Odessa, Italian Boulevard etc are being driven across France. Another interesting statistics states that there are nearly 30% of the working population that receive no wages or receive only partial wages (wage arrears). Some say that the poor are getting poorer and the rich are getting wealthier. However the proportion at which this proposition is arrived at is still unknown. Some experts have confirmed that the growth speed across developing countries is comparatively high and it is this factor that will slowdown the income gap. The question now arises on how this ratio or calculation and measurement is being arrived at. In our research, our readings have clearly depicted a growing income gap and a shrinking income gap is not visible. The author has selected comparative data (random selection) and the resulted conclusion that has been arrived at is that the income gap is growing. ?Bucketing' countries into groups results in a question on how to define those groups properly? This question did not provide us with a comprehensive answer. There are some theories that partially explain this growth in the income gap. However, it should be noted that there exists specific items that require, action, measures, correction, anticipation, etc in a simultaneous fashion. It is not one theory but some or a few theories that could help economists in explaining the events of the past and the undeciphered stories retroactive manner. Private foreign Investment is volatile in helping income gaps reduce, while it is public aid that is creating distortions in eradicating income gap growths and it is this growth of trade which is mainly increasing the income gap. The increase in trade will result in the developed countries and its corresponding governments to be able to setup proper policies through more governance. Private businesses should concentrate on unskilled workers to optimize their skills and on innovation.
