Question

Describe the distribution of income for the world as a whole.

Answer 1

Income Distribution is at the core of the ongoing problem in the political economy the degree to which the government will redistribute income from those with more income to those with less. The question of whether the government should redistribute income is a normative one, and each person's answer will depend on his or her values. But for many people, addressing the normative question involves understanding the truth about the actual distribution of income. The word "distribution of income" is a statistical definition.

Rather, the distribution of income results from people's decisions about jobs, investments, and spending as they move with markets and are influenced by the tax system. The 1990s and early 2000s saw the development of a growing body of research, increasingly reliable, explaining how the distribution of income has changed.

In economics, the distribution of income is how the overall GDP of a country is distributed among its population. Income and its distribution have always been central to economic theory and economic policy. Classical economists such as Adam Smith, Thomas Malthus and David Ricardo were primarily concerned with the distribution of income, i.e. the distribution of income between the main factors of growth, property, labor and capital. Modern economists have also addressed this question, but have been more concerned with the distribution of income between individuals and households. Relevant theoretical and policy issues include the balance between income inequality and economic development

The definition of inequality is different from that of deprivation and justice. Income inequality metrics (or income distribution metrics) are used by social scientists to measure income distribution and economic inequality among participants in a particular economy, such as that of a particular country or of the world in general. Although various theories that seek to understand how income inequality exists, income inequality metrics simply provide a measuring device used to assess income dispersion.