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    What is income inequality?

     Income inequality refers to the unequal distribution of income or wealth among individuals or households within a society. It is a measure of the difference between the high and low end of the income distribution spectrum.


    Income inequality is often calculated using the Gini coefficient, which measures the dispersion of income within a population. A Gini coefficient of 0 represents perfect equality, where every individual has the same income, while a Gini coefficient of 1 represents maximum inequality, where one individual has all the income.


    Income inequality can have a significant impact on society, as it can lead to disparities in access to education, healthcare, and other essential services. It can also lead to a concentration of wealth and political power in the hands of a small group, which can further exacerbate the problem of inequality.


    Factors that contribute to income inequality include globalization, technological change, declining union membership, tax policies that benefit the wealthy, and executive compensation practices. Addressing income inequality often requires a combination of policy solutions, including progressive tax systems, investments in education and job training, and regulations on executive pay and profits.




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