Way Forward
There have been various initiatives taken by international forums to address income inequality. The action plans are mainly influenced by programs supported by the International Monetary Fund (IMF). The experience and efforts of the IMF have led to initiatives for integrating social security with business functions and regularizing access to essential public services like health and education to larger sections of people.
It is essential to modify the taxing structure so that the wealthiest in society need to pay more and the low-earning groups are spared. Inequality can be reduced if these tax revenues are invested in public services. Lack of early education and school facilities are the important components contributing to persistent inequality across generations. Investing in healthcare, education, and social protection can help significantly to reduce inequality.
Economic Inequality
Economic inequality is the unequal distribution of income and wealth between different groups in society. It is a concern in almost all countries around the world. Economic inequality can be measured in several ways, but the most common is to compare the incomes of the richest and poorest people in a society. For example, the Gini coefficient is a measure of income inequality that ranges from 0 to 1, with 0 representing perfect equality and 1 representing perfect inequality. In the United States, the Gini coefficient is currently around 0.4, which means that there is a significant amount of income inequality in the country.
Table of Content
- What is Economic Inequality?
- Causes of Economic Inequality
- Economic Inequality Examples
- Economic Inequality in India
- Factors of Economic Inequality
- Impacts of Economic Inequality
- Means to Address Inequality
- Challenges in Reducing Inequality
- Government Initiatives to Face Challenges
- Important Data on Economic Inequality
- Way Forward