How to address inequality in the world

Most social policies today cannot adapt factors such as population growth, past economic problems and regional differences, because of ongoing changes in economies. This inability to adapt, results to income inequality. Gini coefficients keep increasing because the reported income statuses tend to be biased, as the lower-income/poorer groups underestimate their income. In order to develop the standard of living for everyone in the world, both consumption inequality and income inequality must be measured and addressed. Command economy, free education and progressive taxing are ways to promote equality.
1. Command economy: Decentralization and a socialist income distribution would result into greater income equality. A command economy is fit for equality and security. Ideally, it is also efficient because the central planning figures out the best way for resources to be used for the good of all. Although a command economy can have a negative impact on freedom since the central planning decides who works where, produces what, and gets to buy what, the overall growth depends on the country’s leaders and circumstances as does stability. It is the only choice we have over a free-enterprise economy, which does not deliver equality.
2. Free education leads to better paying jobs, and greater employment rates. Free education would also increase marginal utility. Obviously, educated people can achieve better-paying jobs, which will definitely improve people’s income. If the government provides for free education, people will be ensured of their functioning and capabilities.
3. Progressive Tax: Taxing the rich would result into a “second degree stochastic dominance”1 in which the higher-income groups will be more equal with the lower-income groups, in terms of consumption. Those groups that receive more should give more. Progressive tax maximizes the amount of tax that can be collected with a lower number of objections, as it presents an easy political solution for governments with economic problems. Also, people with higher income tend to have a higher percentage of nonobligatory income, and can thus afford a greater tax burden. A person earning exactly enough money to pay for food and housing cannot afford to pay any taxes without it causing material loss, while someone earning twice as much can afford to pay up to half their income in taxes. If the government implemented progressive tax, tax would be more equitable because consumption requires a balance between known and complex social costs.