Economic aspects of fighting inequality

Abstract

Social peace and productivity are dependent to some extent on decent work including among others access to the labour market, fair pay and secure working conditions. States should therefore stop deregulation of the labour market and guarantee minimal wages on which workers, employees and their families could live on. In addition, fighting discrimination of women and better support for children with problems at school, too, is aside its social goal supportive to gain more qualified workforce, necessary facing the ageing society in Europe. Of course, the most challenging development is the high unemployment, mainly in the peripheries of the EU. Therefore, social policy meets at the same time economic goals. Yet they need adequate financing which is endangered by austerity policies. Yet savings by cuts in welfare expenditures will be out-weighted by the negative impacts of wasting talents, of less number of qualified workforces and the economic effects of minor satisfaction in a not well-functioning welfare state.