Question

What social scientists refer to as economic inequality and why some consider it a major social problem?

Answer 1

Economic inequlity is the difference of income or wealth between different group of people, these groups can be based on the different regions, states or can be different group of people in the society. The economic inequality is very crucial tool to ascertain the overall growth of the economy. This also causes the increase in income gap in the economy and this income gap is measured by the Ginni coefficient. The economic inequality is a major social problem in the society as this leads to the increase the income with a certain section of the people and there is less income with other section of population. So the stigma continues and rich become richer and poor become poorer. The economic inequality is a problem because there are limited resources in the economy and due to this inequality in income a major amount of resources is consumed by wealthy population and there are less remaining with poor population.