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Ioana Cătălina DIACONESCU
Academia de Studii Economice din Bucureşti
Sebastian BĂLĂNICĂ
Academia de Studii Economice din Bucureşti
Income and wealth disparity is one of the defining problems of our time. In sophisticated economies, the wealth gap between the rich and the poor is at an all-time high. Inequality developments in emerging markets and developing nations have varied, with some countries experiencing declining inequality while others continue to experience entrenched disparities in access to education, health care, and finance. As a result, governments and scholars are debating the extent of inequality, its origins, and what to do about it. Inequality is a significant issue that is only becoming worse. The gap between the rich and the poor is expanding not only in rich countries. While emerging countries have achieved enormous progress in eliminating poverty in recent years, economic inequality has still risen in some of them. In a few of Asia’s economic powerhouses, income gaps have widened. This phenomenon has also spread to Sub-Saharan Africa and a few South American countries. In both industrialized and developing countries, income disparity is merely one component of larger economic and social imbalances. What is not clear is the answer that will solve this problem once and for all. As a result, it is possible to assert that one is presented with a challenging situation for which no efficient solution exists. Amid widespread unemployment during the Covid-19 pandemic, calls for a universal basic income have gained fresh relevance. From political parties and think tanks to civic activists and trade unions, large numbers of individuals and groups are asking for dialogue regarding this proposed social welfare program in which all citizens are unconditionally awarded a minimum living wage every month, regardless of their employment status. Although not a new idea, universal basic income (UBI) has gained ground against the background of a broader social movement concerning the failure of welfare systems and the potential contribution of artificial intelligence to widening inequality.

ŒCONOMICA no. 3/2021
Keywords: inequality, poverty, Covid-19, welfare systems, artificial intelligence, universal basic income
JEL: D63, I18
The Saga of Income Inequality: A Threefold Problem and an Unfolding Solution?