Income Inequality Essay

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Economic inequality is the difference between individuals or populations in the distribution of their assets, wealth, or income. The term typically refers to inequality among individuals and groups within a society, but can also refer to inequality among countries. The issue of economic inequality involves equity, equality of outcome, equality of opportunity, and life expectancy. Opinions differ on the utility of inequality and its effects. A 2010 study considered it beneficial, while other recent studies consider it a growing social problem. While some inequality promotes investment, too much inequality is destructive. Statistical studies comparing inequality to year-over-year economic growth have been inconclusive; There are various numerical indices for measuring economic inequality. A prominent one is the Gini coefficient, but there are also many other methods. Measurement of inequality in the modern world A study entitled "Divided we Stand: Why Inequality Keeps Rising” by the Organisation for Economic Co-operation and Development reported its conclusions on the causes, consequences and policy implications for the ongoing intensification of the extremes of wealth and poverty across its 22 member nations . "Income inequality in OECD countries is at its highest level for the past half century. The average income of the richest 10% of the population is about nine times that of the poorest 10% across the OECD, up from seven times 25 years ago." "Other traditionally more egalitarian countries, such as Germany, Denmark and Sweden, have seen the gap between rich and poor expand from 5 to 1 in the 1980s, to 6 to 1 today." The combined wealth of the "10 million dollar millionaires" grew to nearly $41 trillion in 2008. In 2001, 46% of people in sub-Saharan Africa were living in extreme poverty. Nearly half of all Indian children are undernourished, however, even
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