Economic inequality refers to differences in wealth, income, and assets between individuals and populations. The document discusses several key points about economic inequality: 1) It is a significant global issue as the world's wealth is unevenly distributed, with the richest 1% owning over 40% of global wealth while the poorest half own barely 1%. 2) Economic inequality is measured using the Gini coefficient, which calculates a country's wealth distribution on a scale of 0 to 1. 3) Economic inequality relates to and exacerbates many other social problems like poverty, lack of access to education and healthcare, gender inequality, and crime. It persists due to power imbalances that public policies and the economic system reinforce.

1. ProblemsofPowerandControl:
EconomicInequality
Lauren Kovacs
Contemporary Social Issues - GNED2057-15F-12669
Professor Emily Brett
Friday, November 27, 2015. (Balance Scale Image, 2015)
(World Map, 2006)

2. What is economic inequality?
“Economic inequality is the difference in how assets, wealth, or
income are distributed among individuals and/or populations. It is
also described as the gap between rich and poor, income
inequality, wealth disparity, wealth and income differences, or the
wealth gap” (Inequality, 2015).
(Expensive Ignorance and Economic Inequality, 2014)

3. What is the significance of economic
inequality? Economic Inequality is significant because the planet we live on is so
dependant on money.Throughout the world economic inequality is massively
seen through the division between the rich and the poor.This causes many
relevant problems worldwide that will be later mentioned. From a sociological
perspective economic inequality separates society as a result of power and
control issues. If not for this inequality, many of the worlds struggles would not
exist.
(Tomislav, 2014)

4. How is income inequality measured?
The most common technique used to measure economic
inequality is referred to as the Gini Coefficient.
According to the Conference Board of Canada,
the Gini Coefficient, “calculates the extent to
which the distribution of income among
individuals within a country deviates from an
exactly equal distribution” (Income Inequality,
2015). In simpler terms, the Gini coefficient
uses a ranking system that demonstrates a
countries wealth distribution in regards to
equality. For instance, if a country is rated 0
then they have complete equality, whereas if
a country is ranked 1 then a single individual
owns all the countries wealth. Based on this
image Greenland is high on income equality,
and countries south in Africa are very high on
income inequality.
The Gini Coefficient:
0= total equality (same income)
1= total inequality (one person has
all)
(World mapGini coefficient with legend, 2006)

5. Economic Inequality and theWorld
The following are statistics that support the prevalence of
economic inequality:
• “The richest 1% of adults in the world own 40% of the
global household wealth; the richest 2% of adults own
more than half of the global: and the richest 10% of
adults owns 85% of total global wealth.
• The poorest half of the world population owns barely
1% of global wealth.
• Households with per adult assets of $2200 are in the
top half of the worlds wealth distribution; assets of
$61,000 per adult places a household in the top 10%,
and assets of more than $500,000 per adult places a
household in the richest one percent of the world
population.
• Although North America has only 6% of the worlds
adult population, it accounts for 34% of all household
wealth worldwide.
• 1.4 billion of the worlds population is leaving in extreme
poverty” (Holmes, Mooney, Knox, & Schacht, 2016).
Economic inequality is a massive issue worldwide. As
demonstrated through these statistics, the worlds wealth is
unevenly distributed.The rich represents little population
but majority of wealth. Whereas the poor makes up a large
part of the worlds population receiving little to nothing.
(World’sWealth, 2015)

6. This video takes a numeral approach to looking at the worlds wealth distribution in simpler terms.The video looks at the world
on a macro level and exposes the fact that the richest 1% has 43% of the worlds wealth. It is mentioned that 80% of the worlds
people have barely any of it’s wealth. It is stated that the richest 300 people on the planet have equal wealth to 3,000,000,000 of
the poorest people. Ultimately this causes a massive social issue of inequality and eliminates the possibilities of education,
medicines and other basic human needs (TheRulesOrg, 2013).

7. Economic Inequality in Canada
Economic inequality in Canada has been on the rise over the past 20 years.The above image
(left) demonstrates the downfall of inequality in the 80’s.There was a sudden peek in 1991, and
the inequality has been building even since.The image on the right illustrates the wealth
distribution in Canada. It makes it clear that the two wealthiest groupings own 62.3% of
Canada’s total income, whereas the poorest people own 7.3% (Income Inequality, 2015).

8. The above video takes a progressive approach to spreading awareness of economic inequality in Canada. The video discusses
how the majority of Canadian’s work more and earn less now then they did 30 years ago. It is addressed that Canada’s current
economic gap is the result of poor political choices that causes more violence, less health, and less prosperity.As a result, people
have lost faith in the system and therefore are losing the sense of community. Finally, the video offers solutions to such
problems, which believes Canada can be different and offer fair wages, fair taxes, and good jobs (Broadbent Institute, 2012).

9. Relation to other inequality issues:
Economic inequality opens up a gateway to many of the worlds current issues. For instance it is related to the idea of gender
inequality by the fact that men make more then women, which in some cases contributes to the stereotypes around women.
Another factor is that due to the uneven distribution of wealth many people find themselves living in poverty, and some
homeless which causes lack of healthcare, education, and increased crime rates.This is a vicious cycle because once an
individual lacks access to the things that will help them rise above in life, then they are not making the money to live a
sustainable lifestyle.Another big issue is the idea of class conflict, prejudice, discrimination, and struggle over resources
because all of this opens the doors to warfare. Finally, economic inequality also relates to mental health issues because people
are stuck in that cycle of inequality and are not getting access to the support of resources that will better their lives in some
cases.
• Gender inequality
• Relation to crime
• Access to education
• Access to healthcare
• Opens the doors to prejudice and discrimination
• Causes class conflict and instability worldwide
• Wars over resources
• Causes poverty and homelessness
• Struggle over land and housing
• Majorly contributes to mental health issues
(Key Issues in Poverty & Inequality, 2011)
(Inequality, 2015)

10. Economic Inequality in Relation
to the ConflictTheory:
The ConflictTheory is defined by the textbook as, “the theoretical framework that
understands material inequalities to be a driving force behind many social
problems” (Holmes, Mooney, Knox, & Schacht, 2016).
The conflict theory relates to the issue of economic inequality because the
theory views this social issue in regards to the economy being structured to
benefit the wealthy.This theory believes that the proletariat (workers) have
domination over the bourgeoisie (owners). According to the conflict theory,
laws and policies are set in place to benefit the wealthy.This is known as
welfare, which the textbook describes as, “government policies and regulations
that economically favour the wealthy”(Holmes, Mooney, Knox, & Schacht,
2016). Ultimately the conflict theory approaches economic inequality as a result
of the rich having power and control over the poor.
(Rich man’s blood poor man’s war, 2013)

11. Solutions…
Though economic inequality is a massive as well as complex social issue, there are always ways to improve. Some
possible and relevant solutions to such problems include:
• Create more jobs
• Provide employment for all
• Improve taxes for low income families
• Free education for all
• Free healthcare for all
• Equal wages
• Job security
• Remove race barriers
• End discrimination
• Create more work initiative programs –
educating young people
• Provide unemployment insurance
• Raise minimum rage
All of the proposed solutions would play a role in providing
economic equality for all.Things like fair wages could be
accomplished by providing everyone with free education and
to demolish racial/gender discrimination so that everyone has
fair opportunities.Another solution is to create more jobs
worldwide and raise minimum wage. Creating more work
initiative programs would be beneficial because it would
educate young people on the importance of creating a stable
financial lifestyle. In addition, providing job security and
unemployment insurance would create economic safety for all.
Finally, one of the biggest solutions to the gap between the
rich and poor is the idea of lowing taxes for low income
families.This , as well as all of the above would force the world
economy to give everybody a fair chance and therefore,
ultimately, provide equality for all.
(10 Solutions to Fight Economic Inequality, 2015)

12. In conclusion…
Economic inequality is a major issue not only in Canada, but throughout the world. Income
inequality is defined as the gaps between the rich and the poor.There are three categories that fall
under economic inequality which include, income inequality, pay inequality, and wealth inequality.
Economic inequality is measured by the Gini Coefficient. Economic inequality contributes towards
the worlds struggles such as, poverty, homelessness, lack of education, lack of healthcare, warfare,
battle of resources, gender inequality, and overall prejudice/discrimination. All of the above are
current issues in the world as well as in Canada. Economic inequality is a major power and control
issue that needs a solution,WE NEED CHANGE!

13. (Living with Inequality, 2015)

14. References
Balance Scale Image. (2015). Retrieved from http://www.clipartbest.com/balance-scale-image
Broadbent Institute. (2012). Ed Broadbent on Income Inequality. Retrieved from https://www.youtube.com/watch?v=ZDWOm9eGVpU
Expensive Ignorance and Economic Inequality. (2014). Retrieved from http://quietmike.org/2014/06/28/expensive-ignorance-economic-
inequality/
Holmes, M., Mooney, L., Knox, D., & Schacht, C. (2016). Understanding social problems. (Fifth Ed.). Nelson Education: Toronto.
Inequality. (2015). OECD data. Retrieved from https://data.oecd.org/inequality/income-inequality.htm
Inequality. (2015). Retrieved from http://www.forbes.com/sites/jamesmarshallcrotty/2015/02/27/knowledge-is-power/
Income Inequality. (2015). The conference board of Canada. Retrieved from http://www.conferenceboard.ca/hcp/details/society/income-
inequality.aspx
Key Issues in Poverty & Inequality. (2011). The Stanford centre. Retrieved from http://web.stanford.edu/group/scspi/issue_home.html
Living with Inequality. (2015). Retrieved from http://www.economist.com/news/united-states/21660180-what-good-more-unequal-
america-might-look-living-inequality
Rich man’s blood poor man’s war. (2013). Retrieved from http://clipart-finder.com/clipart/RichmansWARPoormansBLOOD4.html
The EqualityTrust. (2015). The equality trust’s focus on economic inequality. Retrieved from https://www.equalitytrust.org.uk/how-
economic-inequality-defined

15. References (continued)
Tomislav, I. (2014). Income inequality. Retrieved from
http://www.vancouversun.com/business/Opinion+Income+inequality+problem+Canada/10657684/story.html?__lsa=3078-8fcc
TheRulesOrg. (2013). Global wealth inequality - what you never knew you never knew. Retrieved from
https://www.youtube.com/watch?v=uWSxzjyMNpU
World Map. (2006). Retrieved from https://commons.wikimedia.org/wiki/File:World_map_clip_art.svg
World map Gini coefficient with legend. (2006). Retrieved from
https://commons.wikimedia.org/wiki/File:World_Map_Gini_coefficient_with_legend_2.png
World’s Wealth. (2015). Retrieved from
http://www.qcc.cuny.edu/SocialSciences/ppecorino/INTRO_TEXT/Chapter%2010%20Political%20Philosophy/Inequality.htm
10 Solutions to Fight Economic Inequality. (2015). Talk poverty. Retrieved from http://talkpoverty.org/2015/06/10/solutions-economic-
inequality/