ECONOMIC INEQUALITY

E N T R Y 4

1st thing in my mind when i'm learn about this thing is WHAT is economic inequality??.. as usual.. everything must be start with WHAT right??..heee.. it is my 4 lecture for this semester under topic of economies of cities and regions.. and honestly when come to economic and anything related to this topic, i'm feel dizzy...heee... so let see what is my understanding about this ECONOMIC INEQUALITY

economic inequality can be defined as difference between individuals or population in the distribution of their assets, wealth or income. (wikipedia).

economic inequality also refer to financial disparity. in this world, it is very strange to see a society with same level of economic, lifestyle and other which means same financial and material resources. it is weird is it?? then it will not have any specialty among of them. but as we know life is like a loop.. sometimes we will at the top and sometimes we will at the bottom. so as economic equality.. it should have wealthy people and poor people and it become one of the major issue why people cannot have the same level of financial as others... but that is the reality and if we try to change it, i don't think we can..why?? life will become monotonous and nothing challenging at all..

Two primary focuses regarding economic inequality. 

1. WEALTH - a measure of the money and material possessions people already have. Wealth has the potential to greatly impact the manner in which people live because it can determine what they are able to purchase and what they are able to do at present. Those considered wealthy, therefore, tend to have much better standards of living than those in lower economic classes.
2. INCOME - Some people have little or no wealth because they have little or no income. Although it is not always the case, it common to find that those with the most wealth and the best standards of living are also those with substantial inflows of money.

Factors that impacting economic inequality:

1. labor market incomes - determination of wages by the market
2. globalization
3. technological changes
4. policy reforms
5. more regressive taxation
6. computerization and increased technology
7. racial discrimination
8. nepotism
9. variation in natural ability

The economic inequality is differ in some places. For example, in countries where there is a lack of social service systems, we can see some people are extremely wealthy, others may suffer situations such as starvation and lack of basic necessities. while for countries where there are social service programs, the gap between the lowest economic class and the highest is generally narrower, but there are still major differences in the lifestyles of the groups.

economic inequality also link to income inequality as mention by www.reuters.com it can linked to depression. http://www.reuters.com/article/2013/10/09/us-income-inequality-idUSBRE99814R20131009

income inequality can be measured by 

1. Lorenz Curves - plots the cumulative percentages of total income received against the cumulative percentages of recipient, starting with the poorest individual / household .below is the example of Lorenz Curves
   
    
2. Gini Indexes - it is more convenient and the task is to compare income inequality among many countries. the index is calculate as the area between a Lorenz Curve and the line of absolute equality expressed as percentage of the triangle under the line. below example of table measured by Gini Indexes 
   
   
   
   
   

Economic inequality create few arguments such as income and wealth disparities affect peoples' access to items and services that should be available to everyone, such as food, health care, and legal representation and ability for the wealthiest individuals to influence the political atmosphere, which affects all of the economic classes.

as conclusion, economic inequality is a situation that exist from long time ago and continue until now. it gives advantages and disadvantages to people and initiatives to reduce the economic inequality can be divide into two sector which are by government initiatives and market driven. however some of the initiatives may lower the inequality but sometimes increased it.