GDP vs GINI

We have to ask what a developed country is. According to the World Bank, a high-income economy is defined by the World Bank as a country with a gross national income per capita $ 12,056 or more in 2017, calculated using the Atlas Method. While the term "high income" is often used with " First world" and "developed country", the technical definitions of these terms differ (World Bank,2018) Of course, the gross national income per capita is not really enough to demonstrate people's, who live in high-income countries, welfare level. Therefore, in economics, we use the Gini Coefficient to measure the distribution of income. 

A country can have a high income, but it does not mean that in a country, every single person gets the same living standard. Firstly, we have to check GDP per capita of countries, and then we ought to check the Gini Index showing us how fair is equality of opportunity. The U.S is the best example of it. In the U.S, GDP per capita is $57,797 ( average of OECD is $ 42,256). In 2018, $57,797 is superb GDP per capita. The U.S citizens must have a high standard, yet not every American citizen has it because of the unfair distribution of income.

First of all, we should look at the Gini Index. According to the Gini coefficient, the U.S third-worst country in OECD for income inequality. Namely, the U.S has a good income and economic growth, yet some people earn much more than other citizens. It means the American government has to make a legislative regulation to fix inequality income. 

How is that possible? At first, the American government should focus on taxation on income. People who earn more money than the majority should pay more tax, otherwise poor citizens may lose spendable money from disposable income. In conclusion, in the long-term, that influences the countries economy due to disposable income diminishing.