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See: Banking Families, Income Disparity, Income Inequality

Economic inequality refers to the disparity in the distribution of wealth, income, and economic resources among individuals or groups within a society. It is a key issue in economic and social policy, reflecting differences in access to opportunities, resources, and outcomes. Economic inequality can manifest in various forms, including income inequality, wealth inequality, and disparities in access to education and healthcare.

Economic inequality can be attributed to multiple factors, including disparities in education and skill levels, differences in employment opportunities, and variations in capital and asset accumulation. Technological advancements, globalization, and shifts in labor markets can exacerbate inequality by creating a divide between high-skilled, high-income individuals and those with lower skills and wages. Additionally, systemic issues such as discrimination and unequal access to resources can contribute to persistent economic disparities.

The consequences of economic inequality are wide-ranging and can affect social cohesion, economic stability, and overall quality of life. High levels of inequality can lead to social unrest, reduced social mobility, and lower levels of trust within society. Economically disadvantaged groups may face barriers to accessing quality education, healthcare, and other essential services, which can perpetuate the cycle of poverty and limit opportunities for upward mobility.

Addressing economic inequality often involves a combination of policies and interventions aimed at promoting greater economic fairness and opportunity. Common strategies include progressive taxation, social welfare programs, investment in education and job training, and efforts to improve access to healthcare. Policymakers and economists advocate for various approaches to reduce inequality, with the goal of creating a more equitable and inclusive society.

• https://en.wikipedia.org/wiki/Economic_inequality
• https://www.imf.org/en/Topics/inequality

Snippet from Wikipedia: Economic inequality

Economic inequality is an umbrella term for a) income inequality or distribution of income (how the total sum of money paid to people is distributed among them), b) wealth inequality or distribution of wealth (how the total sum of wealth owned by people is distributed among the owners), and c) consumption inequality (how the total sum of money spent by people is distributed among the spenders). Each of these can be measured between two or more nations, within a single nation, or between and within sub-populations (such as within a low-income group, within a high-income group and between them, within an age group and between inter-generational groups, within a gender group and between them etc, either from one or from multiple nations).

Income inequality metrics are used for measuring income inequality, the Gini coefficient being a widely used one. Another type of measurement is the Inequality-adjusted Human Development Index, which is a statistic composite index that takes inequality into account. Important concepts of equality include equity, equality of outcome, and equality of opportunity.

Historically, there has been a long-run trend towards greater economic inequality over time. The exceptions to this during the modern era are the declines in economic inequality during the two World Wars and amid the creation of modern welfare states after World War II. Whereas globalization has reduced the inequality between nations, it has increased the inequality within the population in most nations. Income inequality between nations peaked in the 1970s, when world income was distributed bimodally into "rich" and "poor" countries. Since then, income levels across countries have been converging, with most people now living in middle-income countries. However, inequality within the population in most has risen significantly in the last 30 years, particularly among advanced countries.

Research has generally linked economic inequality to political and social instability, including revolution, democratic breakdown and civil conflict. Research suggests that greater inequality hinders economic growth and macroeconomic stability, and that land and human capital inequality reduce growth more than inequality of income. Inequality is at the center stage of economic policy debate across the globe, as government tax and spending policies have significant effects on income distribution. In advanced economies, taxes and transfers decrease income inequality by one-third, with most of this being achieved via public social spending (such as pensions and family benefits). While the "optimum" amount of economic inequality is widely debated, there is a near-universal belief that complete economic equality (Gini of zero) would be undesirable and unachieveable.^: 1

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