Income Inequality Definition In Government

The united states currently holds 41 6 percent of the world s personal wealth making it the richest nation in the world but has a gini coefficient 42 that is the worst of any oecd.

Income inequality definition in government. Income inequality is how unevenly income is distributed throughout a population. The effective tax paid by the top 1 of householders was 20 4 while the bottom two quintiles actually paid negative. Wealth is the sum of the value of all assets including money in bank accounts financial investments a pension fund and the value of a home. Income is a flow of money received often measured on a monthly or an annual basis.

In calculating wealth one must subtract all debts such as debt owed on a home mortgage and on credit cards. A retired person for example may have relatively little. One of the primary reasons for this is the policies set forth by the government which are intended to make society more equal. Inequality of wealth and income can happen in any society or government.

Income inequality is defined as an unequal distribution of income between the masses or a situation when a large proportion of total income is held by the small percentage of the population which is possible due to various reasons such as the variation in sources of income number of dependents easier availability of resources etc. Income inequality is the extent to which income is distributed in an uneven manner among a population. The less equal the distribution the higher income inequality is. Instead they are more often the product of.

Even the admittedly anti income inequality authors of the oxfam report mentioned above indirectly admit that government is a part of the problem stating there is growing evidence that the current levels of extreme inequality far exceed what can be justified by talent effort and risk taking. Introduction in the mid 1960s americans had confidence in their political institutions.