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Economic Inequality

Definition

Economic inequality refers to uneven distribution of wealth, income, opportunities, or resources among individuals or groups within an economy. It highlights disparities between those who have more financial advantages and those who have less.

Analogy

Imagine a pizza party where some people get large slices while others receive tiny slivers. This represents economic inequality where some individuals have substantial wealth and resources while others struggle with limited financial means.

Related terms

Wealth Gap: The difference between the richest members of society (top percentile) versus those with lower net worth (lower percentiles). It reveals how assets are distributed across different socioeconomic groups.

Poverty Line: A threshold set by government agencies that determines whether an individual or family is considered to be living in poverty. It helps measure the extent of economic inequality within a population.

Income Mobility: The ability of individuals to move up or down the income ladder over time. It examines whether people have opportunities for upward socioeconomic progress, which can impact economic inequality.