Economic Inequality | Homework

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HOMEWORKS1
Homework 1:
Problem Introduction:
The concept of economic inequality is described as the unequal distribution of money,
and resources among the population. The economic inequality also refers to the unequal
distribution of income opportunities. Considering the present situations, it can be stated that the
people are trapped into poverty, which is steadily growing, barring a good number of people to
rise up the social ladder. The population around the world is faced with an unfair and unequal
opportunities, which is barring their personal growth and their social positions (Ncube,
Anyanwu, and Hausken. 2014). Now it is important to understand that the economic inequality
does not only refers to the financial inequality that is pervading across the social setups, but
along with that, it also refers to the unequal distribution of the opportunities and scopes related to
economy.
Definitions:
In order to understand about the economic inequality, the following definitions of types
of inequality are important.
The first type of inequality is income inequality. Income refers to the pay or the wage
provided to a person upon the employment or the amount of work or service, one is involved into
and along with that the amount of money or interest one gets upon investments into properties or
stocks and the like. This also includes the savings of a person, therefore, it is often seen that
since there is an inequal distribution of salary and wage, and since there are different interest rate
or structure in different countries and across age structure, therefore, the there is an inequality
from the perspective of income (Yanowitch. 2017).

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The next is the wage or pay inequality. This refers to the inequal amount of payment
received by an individual for their efforts and services. Now it is often seen, that for the same
amount of work done, two different people are paid differently, and this is known as the wage or
payment inequality (Yanowitch. 2017).
Lastly, the wealth inequality, which refers to the accumulation of wealth buy an
individual. Therefore, the wealth inequality can be defined as the inequality of accumulation of
wealth across and among the population (Halter, Oechslin, and Zweimüller. 2014). More
importantly, it is observed that the wealthy people use their power of wealth to accumulate more
wealth.
Arguments:
According to the world inequality report 2018. It is observed that there is 1% rich people
with 50% poor people across the globe, which refers to the fact that poor are getting poorer, and
the rich are getting richer. According to the researchers, the 82% of wealth that had been
generated in the past one year had been to the top 1%, who are already wealth and the flow of
wealth are still the same (Houle. 2018). Growth is inequal and not benefitting the entire
population rather it is only benefitting the ones, who are already in position with a good amount
of capital. The recent poverty report has indicated the rate of poverty is steadily increasing and
the current situation is very much political in orientation.
However, at the same time, one branch of the economists has stated that in certain
countries the level or the rate of poverty is steadily decreasing and that countries like India, and
China are bringing in average incomes. The economists have also opined that the income
inequality in these countries are decreasing as well, and the income gap that have been persisting