Economic inequality refers to differences in the amount of money people earn and the wealth they own. These differences can be the result of a wide range of factors, including how much money someone makes, the skills they have, and where they live. Historically, some economists and philosophers have argued that extreme inequality undermines society and leads to more problems than it solves.
The latest findings show that most people around the world think it’s important to try to reduce economic inequality. However, many people may not realize how large the problem is or what it means for their daily lives.
For example, a full-time worker in the United States earning the federal minimum wage of $7.25 doesn’t make enough to afford a one-bedroom apartment in most counties. In addition, the value of some assets – such as homes – can fluctuate significantly over time, which can increase or decrease economic inequality.
Some countries have a lower rate of economic inequality than others, and there are also differences among demographic groups. For example, the median white household in the United States earns 24 percent more than the median black household. This is a result of long-standing economic and social trends, such as racial discrimination in education, hiring, and pay practices.
There are a number of ways to address economic inequality, such as taxes, spending on education, and programs that promote fair pay for all. But there are also a lot of small things that people can do to help – from passing on information about this issue in their classrooms and communities to volunteering at local food banks and homeless shelters.
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