A Brief Note On Film And Global Politics - 2330 Words

Andrea LoPiccolo Film and Global Politics Due: April 29, 2015 Final Paper Income Inequality in Latin America: Cause and Effect When a young Che Guevara embarked on his motorcycle trip across Latin America, he meant to discover himself and explore the world. Instead, he discovered much more than he ever expected to and it completely changed his views on the economic and social status of Latin America. He discovered the truth of working conditions, the poverty in certain areas and the effect that it has, and he was inspired by the camaraderie amongst the indigenous people. He came face to face with hunger, disease, and much more that the poorest people of Latin America have had to face. In a quest for change, it brought these issues to†¦show more content†¦With inequality like this, it is apparent that there needs to be significant economic change in the area. Inequality had been present in Latin America for a long time. But, it is hard to do something about without first knowing and understanding the causes. Obviously, this is a complex situation that cannot be boiled down to one root cause, but it is important to highlight a few things that perpetuate, strengthen, and may have started income inequality. One of the biggest causes is inflation, which is something that affects every economy in the world, just not always to this extent. Inflation is a direct effect of Latin America’s governmental policies, which have proved to increase the money supply in circulation, thus devaluing the local currency while prices continue to rise. During this, salaries often do not get raised at the same rate to accommodate, and poverty progresses. What’s more, as inflation continues, the value of people’s savings also dwindles, as that amount stays the same while the currency value drops rapidly. Retired citizens are then left to suffe r as the savings they survive on change into virtually nothing. Those who are already wealthy, however, can avoid this effect on their wealth by saving their money in foreign currencies abroad. Because of this, they often see their wealth continue to grow, while the poor with only access to their local currency get