“As long as poverty, injustice and gross inequality persist in our world, none of us can truly rest”. It is true to say that in today’s world, the rich are getting richer and the poor are getting poorer. This is the result of distinctions based on a man’s rank.  Importantly, inequality affected the stereotype dimensions through distinct mechanisms. Higher economic inequality exacerbates the perceived competence and assertiveness of the wealthy and perceived lack of competence and assertiveness of the poor. Due to the necessity for ever-increasing amounts of money to be kept safe and secure while ensuring tax reductions, this imbalance inevitably leads to corruption.

If governments can’t come up with effective strategies to fight it, corruption will continue to exist for a very long time to come.  Businessmen are frequently informed when corruption is present that an upfront bribe is necessary before a venture can start and that corrupt officials may later take a portion of the investment’s profits. Although the empirical literature has so far produced conflicting results regarding the effects of government expenditure and its composition on economic growth, the majority of economists believe that the level and type of spending undertaken by governments do matter for economic performance, making the question of whether corruption affects the composition of government expenditure an interesting one to consider.

Hardik Garg 2220825
Mahak Banzal 2220836
Vanshita Muskaan 2220867