Economic Inequality

Definition

Economic inequality refers to the disparity in wealth, income, and standard of living among individuals or groups within a society.

Analogy

Think of economic inequality like a pizza party where one person gets half the pizza while everyone else has to share the other half. The distribution is unequal, with one person having significantly more than others.

Related terms

Income Distribution: This term refers to how a nation’s total GDP is distributed amongst its population. It's like deciding who gets what slice of the national 'pizza'.

Wealth Gap: This is the difference in net worth between different sectors or groups within a society. Imagine if some people at our pizza party also got sides and drinks while others only got a small slice.

Poverty Line: This term refers to an income level below which one is considered impoverished. If you're not even getting enough slices of pizza to feel full, you're below the 'pizza' poverty line.