Question

Explain how inequality of income and poverty are interlinked.

Answer 1

1. Inequality in the distribution of wealth and income worsens poverty.
2. People with large assets earn more income compared to those with few or no assets.
3. This inequality of assets leads to inequality of income.
4. Income inequality reduces the ability of the poor to improve their living standards.
5. Thus, unequal income distribution perpetuates and deepens poverty.