Social and Economic Inequality Essay

Introduction.

The word is an extremely unequal place, and this is evidenced by the latest trends in social and economic inequality. Today, the richest part of the world’s population own approximately 40 percent of the total global assets, and this is just a top of the iceberg.

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The richest 10 percent own more than 85 percent of the world’s wealth while the poorest 50 percent own just about 1 percent of the global wealth. This implies that the world’s top richest 150 persons possess more than what 50 percent of the world’s poorest, which are approximately 3.3 billion people, have.

The greatest source of this global inequality has been attributed to the huge gap among countries in levels of economic development. Disparities between developed and developing nations are enormous: the mean per capita income in developed nations is seven times more than it is in developed countries.

Growing levels of global economic inequality in the world has led to another form of inequality which is called social inequality. Today, societies and/or nations that are ranked low on economic aspects continue to face a number of social problems; millions of the world’s poorest people live without access to clean water, electricity, adequate housing, education and healthcare.

This implies that their ability to contribute productively to their nation/societies’ prosperity is limited. It worsens economic inequality among countries. Besides, social inequality has been linked with major political conflicts as it is seen in many countries, such as Sri Lanka, Uganda, the Congo Basin, and so on.

It is important to note that countries that rank low on economic indices also have the highest levels economic and social inequalities. Although nearly all the systems of moral belief challenge those of us who live in comfortable apartments to devote at least some resources to improve the conditions of those who live in poverty. Thus, economic and social inequality still remains high globally.

Although there is no universal accord on the causes of social and economic inequalities, many studies have pointed to societal structural changes as the main cause of the problem.

Loosely defined, structural changes refer to a long-term and extensive change of basic structures that have drastic effects on societal norms. Structural change can work to both reducing or increasing inequality levels as it is seen in the China and India case study. In 1981, nearly 64 percent of the Chinese population lived in absolute poverty, today, the figure has dropped to 15 percent.

In India, the drop was less significant, but still a noteworthy because the level reduced from 55 percent to 35 percent. Economic growth in China and India was the result of structural changes in the respective nations’ economies. China effected these changes by undertaking reforms in its economic policies to give greater power to market forces and the private sector.

The changes began in the agricultural sector more than 20 years ago and have been extended steadily to other sectors of the economy including service and industry sectors. These changes threw out price control mechanisms and gave more power to the private sectors. Today, China’s economic growth rate is averaged at 9.5 percent while national income has been doubling every 8 years due to these changes.

Although inequality still exists, similar to all the Western countries, China’s story of success and progress shows the extent to which structural changes can help in reducing inequality levels within its population and with other countries. Indeed, studies by the UN and other organizations show that there is a significant correlation between poverty and inequality.

While structural changes have reduced economic and social inequalities in some areas, the concept has led to a worsening of conditions in some countries. For instance, mechanization of agricultural processes has led to unemployment in some developing countries, increasing incomeinequality.

Although the structural change theory has gained widespread acceptance, a second theory that views inequality in the light of individualism has found application in some areas. For instance, Americans believe that the main cause of poverty (and hence inequality) is personal failure and moral turpitude of the poor.

This theory’s acceptance has caused an unnecessary strain between structural change and popular opinion in some areas since studies seem to suggest that both environmental and non-environmental factors including structural change affect a person’s likelihood of success in life. For instance, during the Communist control of China, the economy was regulated by a central power, and with concerted efforts to succeed, most citizens grew poor as state resources were controlled by the government.

The fall of the Communist government ushered in a new era that had seen the Chinese prosper and reduce of the inequality gap. Hence, the individualistic view of poverty and inequality does not effectively explain why some people live in poverty. The government and other structures must support its citizens so that prosperity at individual and national levels can be realized.

Social and economic inequality is likely to reduce in most countries in future. This forecast is based on current trends that show a drop in various types of inequalities in a number of nations. Besides, the world’s economy is becoming globalized, and in the future, the gap in income distribution will most likely reduce declining social and economic inequality.

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Economic Research - Federal Reserve Bank of St. Louis

Page One Economics ®

Income and wealth inequality.

economic inequality essay pdf

"For we, the people, understand that our country cannot succeed when a shrinking few do very well and a growing many barely make it. We believe that America's prosperity must rest upon the broad shoulders of a rising middle class." 

—President Barack Obama 1

Introduction

There are many different types of inequality among people: educational attainment, work experience, and health—to name a few. This essay discusses economic inequality: its causes, measurement, and the potential impact of its growth in the U.S. economy.

Economists directly link differences in educational attainment and work experience, also known as human capital, to differences in economic outcomes. That is, formal education and job skills determine how likely a person is to find and hold a stable job that pays good wages. The flow of money from wages is the most important source of income for most people. Over time, regular income from employment allows people to own assets such as a home or a retirement financial portfolio. That stock of assets is called wealth .

Data collected by federal organizations such as the Census Bureau and the Board of Governors of the Federal Reserve System (BOG) allow us to measure how unequal the distributions of income and wealth are in the United States. Those data show that, since the 1970s, some individuals and families are earning much more income and accumulating much larger amounts of wealth than the typical family does. 

Data reported by the World Bank allow us to compare the distribution of income across countries. As of 2018, the available data show large international differences in income inequality. Although not all countries in the world have data on income inequality, among those that do, the United States ranks among the top 25% most unequal.

What Causes Inequality?

The root cause of differences in income and wealth across individuals and households is a combination of personal and social factors. Personal factors are unique to individuals and include talent, effort, and luck. Such factors can be either nurtured or hindered by the family upbringing of the individual. Social factors affect groups of people and include education policies, labor market laws, tax codes, and financial regulations. At any moment in time, social factors can overpower personal factors to determine individual prosperity and increase inequality among people. 2

For example, as gradually more married women started working outside the home between 1960 and 2000, their family incomes increased and the differences in income between households became larger depending on whether they had one or two people earning wages. At the same time, differences in the types of jobs women and men tend to hold also contribute to income inequality between genders. 3

Because wealth is accumulated over time, older people are generally wealthier than younger people. For that reason, if there are many more young people than old people in the general population and the old hold more wealth than the young, overall wealth inequality will be high. 4

Finally, some people argue that the type of monetary policy used to ensure steady access to credit by households and businesses during recent economic contractions may contribute to higher levels of income inequality. However, that claim is hotly disputed. 5

How Is Income Inequality Measured?

There are different ways to measure how unequal income is in a country. The U.S. Census measures income inequality as the ratio of the mean, or average, income for the highest quintile (top 20 percent) of earners divided by the mean income of the lowest quintile (bottom 20 percent) of earners in a particular area. Let's say a small county has 500 people earning an income. To measure how unequal those incomes are, the Census surveys and sorts each person's income from highest to lowest, calculates the average income of the 100 people earning the most and the average income of the 100 people earning the least, and divides the first figure by the second figure. 

Figure 1 Income Inequality by County 

SOURCE: U.S. Census via FRED ® , Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/graph/?m=QRCJ , accessed June 23, 2021.

Figure 1 shows average county-level income inequality measured between 2016 and 2020. The Census considers the average income over a five-year period to account for the fact that peoples' income changes from year to year. Measured this way, income inequality can be as high as 130 or as low as 5. These measurements mean that the most affluent households in a particular county can earn as much as 130 times or as little as 5 times as much as the least affluent households do.

Another way to measure income inequality in a population is to calculate the Gini index . The World Bank uses that index to measure how much the distribution of income among households deviates from a perfectly equal distribution. The Gini index can take any value between 0 and 100. A value of 0 represents perfect equality: All households earn the same income. A value of 100 indicates perfect inequality: One household earns all the income, and all other households earn nothing.

Figure 2 Gini Index by Nation

SOURCE: World Bank via FRED ® , Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/graph/?m=QRFh , accessed April 6, 2021.

Figure 2 shows country-level income inequality measured with a Gini index in 2018. The highest value is 54, and the lowest value is 25. It is important to note that two countries can have very similar Gini indexes despite having very different distributions of income. For example, in 2018, the Gini index for the United States was 41.4 and for Bulgaria was 41.3, despite the fact that those two countries' economic and social histories are very different.

In the United States, since the 1970s, the Gini index has increased at a steady rate, indicating greater income inequality across families. 6 Some research suggests that this growing difference is related to the increased value of the stock market. Wealthier households hold more stocks than poorer households. So, when stock market prices rise, the income of wealthier households grows relatively more and overall income inequality increases. 7  

How Is Wealth Inequality Measured?

The BOG combines information from two different surveys to measure how wealth is distributed among households: It takes the value of a household's assets (e.g., the current market price of a home) and liabilities (e.g., the unpaid part of a mortgage for a home) and calculates the difference between the two, which is called net worth . Next, the BOG sorts household wealth from highest to lowest and reports the net worth of four different groups: the wealthiest 1% of the population, the next 9%, the next 40%, and the bottom 50%.

Figure 3 Share of Total Net Worth Held by Population Groups

SOURCE: Board of Governors of the Federal Reserve System via FRED ® , Federal Reserve Bank of St. Louis; https://fred.stlouisfed.org/graph/?g=O2Kq , accessed April 6, 2021.

Figure 3 shows the share of total net worth held by each of those four groups. In 2021, the wealthiest 1% of the population (about 3.3 million households) held about one-third of total net worth; the next 9% (almost 30 million households) held a little more than one-third; the next 40% (about 133 million households) and the bottom 50% (about 166 million households) together held the rest—less than one-third of total net worth.

The data from the BOG show increasing wealth concentration since 1989, when the data first became available. 8 It is important to note that, over time, some individual households can move up or down between wealth groups, depending on the changing value of their assets. Also, some research suggests the particular nature of some economic fluctuations impacts some households' net worth more than others. For example, the real estate crash associated with the 2007-09 recession resulted in large losses for the poorest 50% of the population. 9

Does Inequality Matter?

The economic impact of growing income and wealth inequality in the United States is an intensely studied question. Economists are debating how to answer that question by analyzing data and creating mathematical models to study it. Because this is ongoing work, there is no single answer.

Some research shows that, in richer countries, more unequal income makes economic fluctuations more pronounced. 10 That finding means that the changes in overall income and employment known as business cycles become more dramatic. Moreover, statistical evidence suggests increased income inequality undermines economic growth due to lower educational achievements (and human capital) among poorer individuals and households. 11 As discussed earlier, education builds a person's human capital and is rewarded with higher income from employment. Finally, research suggests the increasing income and wealth inequality can undermine the use of monetary policy (as we know it) to maximize employment and ensure price stability. 12  

Inequality in individual economic outcomes arises from a combination of personal traits and social conditions. The distributions of income and wealth in a society can be measured in multiple ways: comparing the highest to the lowest earners, calculating an index describing how unequal income is among all individuals, and assessing people's financial wellbeing according to the value of their wealth holdings. Regardless of how we measure income and wealth inequality, their distributions in the United States are becoming more unequal. This trend is likely to impact economic life as we know it. More research is needed to figure out precisely how that may happen.

1 Obama, Barack. "Inaugural Address." January 21, 2013; https://obamawhitehouse.archives.gov/the-press-office/2013/01/21/inaugural-address-president-barack-obama .

2 For an example of how the use of city maps to assess lending risk after the Great Depression influenced homeownership rates across population groups for decades afterward, see the following article: Mendez-Carbajo, Diego. "Neighborhood Redlining, Racial Segregation, and Homeownership." Federal Reserve Bank of St. Louis Page One Economics , September 2021; https://research.stlouisfed.org/publications/page1-econ/2021/09/01/neighborhood-redlining-racial-segregation-and-homeownership .

3 For more on gender and labor markets, see the following article: Mendez-Carbajo, Diego. "Gender and Labor Markets." Federal Reserve Bank of St. Louis Page One Economics , January 2022; https://research.stlouisfed.org/publications/page1-econ/2022/01/03/gender-and-labor-markets .

4 For more on aging and wealth inequality, see the following article: Vandenbroucke, Guillaume and Zhu, Heting. "Aging and Wealth Inequality." Federal Reserve Bank of St. Louis Economic Synopses , 2017, No. 2; https://research.stlouisfed.org/publications/economic-synopses/2017/02/24/aging-and-wealth-inequality/ .

5 For a contribution to the ongoing debate about the relationship between monetary policy and income inequality, see the following article: Bullard, James. "Income Inequality and Monetary Policy: A Framework with Answers to Three Questions." Presented at the C. Peter McColough Series on International Economics, Council on Foreign Relations, New York, June 26, 2014; http://research.stlouisfed.org/econ/bullard/pdf/Bullard_CFR_26June2014_Final.pdf .

6 The following FRED® graph shows the income Gini ratio of all families, reported by the U.S. Census Bureau since 1947: https://fred.stlouisfed.org/graph/?g=MKYg .

7 For more on income inequality and the stock market, see the following articles: 

Bennett, Julie and Chien, YiLi. "The Large Gap in Stock Market Participation Between Black and White Households." Federal Reserve Bank of St. Louis Economic Synopses , 2022, No. 7; https://research.stlouisfed.org/publications/economic-synopses/2022/03/28/the-large-gap-in-stock-market-participation-between-black-and-white-households/ . 

Owyang, Michael T. and Shell, Hannah G. "Taking Stock: Income Inequality and the Stock Market." Federal Reserve Bank of St. Louis Economic Synopses , 2016, No. 7; https://research.stlouisfed.org/publications/economic-synopses/2016/04/29/taking-stock-income-inequality-and-the-stock-market/ .

8 For more about the change in wealth distribution over time, see the following post: Federal Reserve Bank of St. Louis. "Comparing the Assets of the Rich, Poor, and Middle Class." FRED ® Blog , October 21, 2019; https://fredblog.stlouisfed.org/2019/10/comparing-the-assets-of-the-rich-poor-and-middle-class/ .

9 For more on how recessions impact household net worth, see the following article: Mendez-Carbajo, Diego. "How Recessions Have Affected Household Net Worth, 1990-2017: Uneven Experiences by Wealth Quantile." Federal Reserve Bank of St. Louis Economic Synopses , 2020, No. 38; https://research.stlouisfed.org/publications/economic-synopses/2020/08/07/how-recessions-have-affected-household-net-worth-1990-2017-uneven-experiences-by-wealth-quantile .

10 For more on the relationship between inequality and economic fluctuations, see the following article: Iyigun, Murat F. and Owen, Ann L. "Income Inequality and Macroeconomic Fluctuations." Board of Governors of the Federal Reserve System International Finance Discussion Papers , July 1997; https://www.federalreserve.gov/econres/ifdp/income-inequality-and-macroeconomic-fluctuations.htm .

11 For more on the relationship between income inequality and economic growth, see the following article: Cingano, Federico. "Trends in Income Inequality and its Impact on Economic Growth." Organisation for Economic Co-operation and Development OECD Social, Employment, and Migration Working Papers , 2014, No. 163; https://www.oecd.org/els/soc/trends-in-income-inequality-and-its-impact-on-economic-growth-sem-wp163.pdf .

12 For more on the relationship between income inequality and monetary policy, see the following article: Cairo, Isabel and Sim, Jae W. "Income Inequality, Financial Crises, and Monetary Policy." Board of Governors of the Federal Reserve System Finance and Economics Discussion Series , July 2018; https://www.federalreserve.gov/econres/feds/income-inequality-financial-crises-and-monetary-policy.htm .

© 2022, Federal Reserve Bank of St. Louis. The views expressed are those of the author(s) and do not necessarily reflect official positions of the Federal Reserve Bank of St. Louis or the Federal Reserve System.

Asset: A resource with economic value that an individual, corporation, or country owns with the expectation that it will provide future benefits.

Gini index: A statistical measure of income inequality in a population that ranges from 0 (indicating absolute income equality) to 100 (indicating a perfectly inequal income distribution).

Household: A group of people living in the same home, regardless of their relationship to one another.

Income: The payment people receive for providing resources in the marketplace. When people work, they provide human resources (labor) and in exchange they receive income in the form of wages or salaries. People also earn income in the forms of rent, profit, and interest.

Liability: A legal responsibility to pay back money from a loan or other type of debt.

Net worth: The value of a person's assets minus the value of his or her liabilities.

Quintile: Any of five equal groups into which a population can be divided according to the distribution of values of a particular variable.

Wealth: The value of a person's assets accumulated over time.

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Is Economic Inequality Really a Problem?

Yes, but the answer is less obvious than you might think.

economic inequality essay pdf

By Samuel Scheffler

Dr. Scheffler is a professor of philosophy.

It is impossible to ignore the stark disparities of income and wealth that prevail in this country, and a great many of us are troubled by this state of affairs.

But is economic inequality really what bothers us? An influential essay published in 1987 by the philosopher Harry Frankfurt suggests that we have misidentified the problem. Professor Frankfurt argued that it does not matter whether some people have less than others. What matters is that some people do not have enough. They lack adequate income, have little or no wealth and do not enjoy decent housing, health care or education. If even the worst-off people had enough resources to lead good and fulfilling lives, then the fact that others had still greater resources would not be troubling.

When some people don’t have enough and others have vastly more than they need, it is easy to conclude that the problem is one of inequality. But this, according to Professor Frankfurt, is a mistake. The problem isn’t inequality as such. It’s the poverty and deprivation suffered by those who have least.

Professor Frankfurt’s essay didn’t persuade all his fellow philosophers, many of whom remained egalitarians. But his challenge continued to resonate and, in 2015, even as concerns about economic inequality were growing in many corners of society, he published a short book in which he reaffirmed his position.

And Professor Frankfurt, it seems, has a point. Those in the top 10 percent of America’s economic distribution are in a very comfortable position. Those in the top 1 percent are in an even more comfortable position than those in the other 9 percent. But few people find this kind of inequality troubling. Inequality bothers us most, it seems, only when some are very rich and others are very poor.

Even when the worst-off people are very poor, moreover, it wouldn’t be an improvement to reduce everyone else to their level. Equality would then prevail, but equal misery is hardly an ideal worth striving for.

So perhaps we shouldn’t object to economic inequality as such. Instead, we should just try to improve the position of those who have least. We should work to eliminate poverty, hunger, bad schools, substandard housing and inadequate medical care. But we shouldn’t make the elimination of inequality our aim.

Is this the correct conclusion? I think not. Economic inequality matters a great deal whether or not it matters “as such.”

Start by considering two points that Professor Frankfurt himself would accept. First, to succeed in eliminating poverty and securing decent conditions of life for all Americans would require raising taxes on the rich significantly. Although the ultimate purpose would not be to reduce inequality, the indirect effect would be to do just that. So even if inequality as such is not the problem, reducing inequality is almost certainly part of the solution.

Second, even if economic inequality is not a problem in and of itself, it can still have bad effects. Great disparities of income and wealth, of the kind we see in the United States today, can have damaging effects even when nobody is badly off in absolute terms. For example, the wealthiest may be able to exert a disproportionate share of political influence and to shape society in conformity with their interests. They may be able to make the law work for them rather than for everyone, and so undermine the rule of law. Enough economic inequality can transform a democracy into a plutocracy, a society ruled by the rich.

Large inequalities of inherited wealth can be particularly damaging, creating, in effect, an economic caste system that inhibits social mobility and undercuts equality of opportunity.

Extreme inequality can also have subtler and more insidious effects, which are especially pronounced when those who have the least are also poor and lack adequate resources, but which may persist even if everyone has enough. The rich may persuade themselves that they fully deserve their enormous wealth and develop attitudes of entitlement and privilege. Those who have less may develop feelings of inferiority and deference, on the one hand, and hostility and resentment on the other. In this way, extreme inequality can distort people’s view of themselves and compromise their relations with one another.

This brings us to a more fundamental point. The great political philosopher John Rawls thought that a liberal society should conceive of itself as a fair system of cooperation among free and equal people. Often, it seems, we do like to think of ourselves that way. We know that our society has always been blighted by grave injustices, beginning with the great moral catastrophe of slavery, but we aspire to create a society of equals, and we are proud of the steps we have taken toward that ideal.

But extreme inequality makes a mockery of our aspiration. In a society marked by the spectacular inequalities of income and wealth that have emerged in the United States in the past few decades, there is no meaningful sense in which all citizens, rich and poor alike, can nevertheless relate to one another on an equal footing. Even if poverty were eliminated and everyone had enough resources to lead a decent life, that would not by itself transform American citizenship into a relationship among equals. There is a limit to the degree of economic inequality that is compatible with the ideal of a society of equals and, although there is room for disagreement about where exactly the limit lies, it is clear that we have long since exceeded it.

If extreme economic inequality undermines the ideal of a society of equals, then is that merely one of its bad effects, like its corrupting influence on the political process? Or, instead, is that simply what it is for economic inequality to matter as such?

For practical purposes, it doesn’t make much difference which answer we give. In either case, the imperative that Professor Frankfurt identified — the imperative to ensure that all citizens have enough resources to lead decent lives — is of the utmost importance. It is appalling that so many people in a society as wealthy as ours continue to lack adequate housing, nutrition, medical care and education, and do not enjoy the full benefits of the rule of law. But addressing Professor Frankfurt’s imperative is not enough. Extreme economic inequality, whether it matters as such or “merely” for its effects, is pernicious. It threatens to transform us from a democracy into a plutocracy, and it makes a mockery of the ideal of equal citizenship.

If, as they say, every crisis is an opportunity, then America today is truly the land of opportunity. Of the many opportunities with which our current crises have presented us, one of the most basic is the opportunity to rethink our conception of ourselves as a society. Going forward, we must decide whether we wish to constitute ourselves as a genuine society of equals or, alternatively, whether we are content to have our relations with one another structured by an increasingly stark and unforgiving economic and social hierarchy.

Samuel Scheffler is a professor of philosophy and law at New York University and the author, most recently, of “Why Worry About Future Generations?”

The Times is committed to publishing a diversity of letters to the editor. We’d like to hear what you think about this or any of our articles. Here are some tips . And here’s our email: [email protected] .

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  1. (PDF) Economic inequality, an introduction

    Economic inequality, an introduction Authors: Maurizio Franzini Sapienza University of Rome Mario Pianta Università degli Studi di Urbino "Carlo Bo" Abstract In this paper we offer an...

  2. Essay On Economic Inequality

    1465 Words6 Pages How has the gap in economic inequality changed between countries in recent years? Introduction In recent years, one of the most popular global issues which raise concerns among people from all over the world is the gap in inequality between the rich and poor countries. This inequality has existed for decades.

  3. PDF Inequality Matters

    Overview discipline—including sociology, economics, political science, psychology, anthropology, history, philosophy, epidemiology, public health, education, and public policy— includes a rich body of work addressing the definitions, patterns, causes, and consequences of social inequality.

  4. Economic Inequality Essay

    Economic inequality, also known as income inequality, is the interval between the rich and the poor. Economic inequality refers to how the total wealth in the United States is distributed among people in a social class. It is needed and it is important but due to the major gap difference, it affects the Democratic Party and in addition, it also ...

  5. Economic Inequality Essays (Examples)

    Topics Economics Economic Inequality Essays Economic Inequality Essays (Examples) 1000 results for "Economic Inequality" . ★Recommended Essay Economic Inequality and Austerity Motivator for Revolution Words: 1289 Length: 4 Pages Document Type: Essay Paper #: 75010866 Read Full Paper

  6. Social and Economic Inequality

    For instance, during the Communist control of China, the economy was regulated by a central power, and with concerted efforts to succeed, most citizens grew poor as state resources were controlled by the government. We will write a custom Essay on Social and Economic Inequality specifically for you! Get your first paper with 15% OFF.

  7. Economic Inequality Essay.pdf

    ENG ENG 1A Economic Inequality Essay.pdf - Cuellar English 1A- English Composition October 1 - 29 2019 Economic Inequality In the modern world the problem of Economic Inequality Essay.pdf - Cuellar English 1A- English... School Norco College Course Title ENG 1A Uploaded By BriannaRose-21 Pages 9 This preview shows page 1 - 3 out of 9 pages.

  8. How Should the US Reduce Economic Inequality? Essay

    Over the period 1960-2015, average annual French economic growth was 2.75%compared to 3.04% for U.S. However, the U.S. growth rate is rising solely because of the growing population: 1.03% compared to 0.65% in France. Apparently, per head, economic growth reflects an increase in productivity, serving as a better indicator of rising economic ...

  9. Economic Inequality Essay 2021.pdf

    Economic inequality has a broad concept, not only limited to indicators of economic well-being between countries, but also has to do with equality of opportunity, politics, etc. Based on UN report, currently, the problem of inequality is scaled up.

  10. Economic Inequality

    Economic inequality refers to the unequal distribution of wealth and resources among individuals and groups within a society or country. This inequality is often measured by factors such as income or wealth disparities, the poverty rate, and the gap between the rich and the poor. Economic inequality can also lead to social and political ...

  11. Economic Inequality Essay Pdf

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  12. Free Economic Inequality Essays and Papers

    Economic inequality Since the beginning of the economy's development, the population has been divided in three main social classes: the upper class, the middle class, and the lower class. The last one is represented as the poorest in economic terms; it is therefore characterized by a high-income inequality between the two opposite classes.

  13. Income and Wealth Inequality

    This essay discusses economic inequality: its causes, measurement, and the potential impact of its growth in the U.S. economy. Economists directly link differences in educational attainment and work experience, also known as human capital, to differences in economic outcomes.

  14. PDF Is Economic Inequality Really a Problem? A Review of the Arguments

    this paper, which is on the effects of economic inequality. Economic inequality measures the position of individuals or groups relative to others in society. In general, it will be the case that the people at the bottom of the income distribution will be both relatively and absolutely poor but one could imagine a

  15. Essay on Lack of Economic Equality in Society

    Essay on Lack of Economic Equality in Society. Good Essays. 1326 Words. 6 Pages. Open Document. "Everywhere in the world there are gross inequities of income and wealth. They offend most of us" stated Milton and Rose Friedman in "Created Equal" (280) . Economic inequalities cause poverty, this disparity fuels social conflict.

  16. Is Economic Inequality Really a Problem?

    An influential essay published in 1987 by the philosopher Harry Frankfurt suggests that we have misidentified the problem. Professor Frankfurt argued that it does not matter whether some people...

  17. Economic Inequality Essay Pdf

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