Question

Ram says that "income inequality is a problem only in the democratic countries". Whereas Rajiv says that "despite economic growth, there is wealth and income inequality in non-democratic regimes". Who among the following is/are correct?

• A. Only Ram is correct
• B. Only Rajiv is correct
• C. Both are correct
• D. Both are wrong

Answer 1

The correct option is B Only Rajiv is correct

Income inequality is a very real problem even in non-democratic regimes. For example, till 2012, the richest 1% in China owned more than one-third of the total national household wealth. Whereas the poorest 25% owned less than 2% of the national household wealth. This data also shows that despite economic growth, there is wealth and income inequality. Therefore, Rajiv is correct in this case.