Economic inequality

Economic Inequality

Economic inequality (pronunciation: /ɪˌkɒnəmɪk ɪnˌiːkwəˈlɪti/), also known as income inequality or wealth inequality, refers to the uneven distribution of economic resources among the members of a society.

Etymology

The term "economic inequality" is derived from the words "economic", which comes from the Greek word "oikonomikos" meaning "skilled in household management", and "inequality", which originates from the Latin word "inequalitas" meaning "unevenness".

Definition

Economic inequality is measured by looking at the distribution of wealth, income, and consumption in a society. It is often presented as the percentage of wealth or income held by a certain percentage of the population. The most common measure of economic inequality is the Gini coefficient, a number between 0 and 1 that represents the degree of inequality in a society.

Causes

There are many potential causes of economic inequality, including differences in education, skill levels, and work experience, as well as discrimination, market power, and government policy. Other factors that can contribute to economic inequality include inheritance, capital gains, and the structure of the tax system.

Effects

Economic inequality can have a number of effects on society. It can lead to social unrest, slow economic growth, and increase poverty and crime rates. On the other hand, some level of economic inequality can provide incentives for people to work harder, invest, and innovate.

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Economic inequality

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