Question

Explain the following concept with examples.

Economic inequality

Answer 1

Economic inequality results from unequal distribution of income and wealth amongst people. It affects social cohesion and solidarity. It also poses a challenge to the unity of the nation.

Example:

1. Unequal distribution of wealth between rich and poor
2. Unequal distribution of resources between different regions

Both the above examples are indicative of economic inequality in society.

Answer 2

The economic standard of people in a State depends on a number of factors like resources available, management and organisation, fertility of land, distribution of wealth and so on. All States are not equal in this regard, and this leads to economic imbalances. Unequal distribution of wealth within a State causes tension and conflict.

Examples:

1. Very often, wealth is concentrated in the hands of a few.
2. Profits from the private sector end up in the hands of a few privileged sections and not for the common good.