The Effects Of Income Inequality

Income inequality is a rather complicated topic. It’s not just about how much money you make, but also how the distribution of wealth affects people. Inequality can be measured by looking at nominal income or real incomes (adjusted for inflation). What does this all mean? Income inequality exists when there are large differences in what different groups earn and possess, such as between genders, age groups, educational levels, and geographic regions. This gap often leads to social problems like lower life expectancy rates among low-income populations and higher crime rates in impoverished areas. Understanding income inequality has become an important issue because it impacts society on so many levels.