Inequality

 

Inequality is the difference seen in the many measures of economic well-being amongst persons in a group, among groups in a population, or among nations. Inequality is alternatively known as wealth gap, income inequality or wealth inequality. Generally, there are three metrics which are used by economists namely, income, wealth and consumption. The inequality issue is important to ideas of equity, outcome equality and equality of opportunities. Inequality differs between societies, economic systems and structures, and historical eras. This term can mean wealth or income distribution across cross-sections at a specific period, or it can mean wealth and income changes over extended time periods. We have several numerical indexes used for measuring inequality. A commonly used index would be the Gini coefficient.  It is also called the Gini Ratio. As per research, more inequality hampers growth in the long run.