Equity and Equality Economic inequality refers to a few things
- Unequal distribution of income
- Unequal distribution of wealth
Measurement
See the distribution of income quintiles, or boxes of percentages.
Draw diagram, Lorenz curve.
Gini Coefficient: Area between the diagonal and the curve (A), area under the diagonal (B), formula is
The unequal distribution of wealth is often twice as bad as income. Reasons for this include:
- Limited growth in wages make it difficult to save and buy
- High income people spend smaller portions of income therefor get to purchase more assets, exacerbating the gap.
measure it fixes?