Power distance refers to how cultures handle inequality, with high power distance cultures treating authority as a status symbol that must be obeyed, while low power distance cultures treat people more equally. Key differences are that high power distance areas tend to have unequal income and wealth distribution concentrated among a small percentage of the population, while low power distance cultures have a more even distribution. Limitations of Hofstede's power distance model include its focus on western methodologies, boss-subordinate relationships rather than other inequalities, and ignoring broader forms of inequality like race and class.