Explain what the long- and short-term consequences are of not promoting equality or working to reduce poverty.

Policy makers must design policies and schemes taking into consideration the income inequality and poverty that persists in the economy.

For the short term, some economists believe that in the short run, a low degree of income inequality will encourage the workers to work harder and compete. This implies that a low degree of inequality incentivizes the workers to work hard. Others believe it adds on to create larger impact in the long run.

On a long term, income inequality and the problem of poverty if left unattended, creates serious implications. If left unattended, they create a strong negative impact on the aim of sustainable growth of an economy. It lowers to the overall living conditions of an economy, the structure will become so that rich shall only get richer and poor more poorer. It also leads to political instability and unemployment issues as skilled labor won't be available. further hampering growth.