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Social inequality refers to disparities in the distribution of material wealth in a society. It can refer to inequality among individuals, or among groups.
The current level of inequality
The gap between the world's rich and poor is as follows: The richest 1% of people (with average income of US$24,000) earn more than the poorest 60% of households combined. The three richest people possess more financial assets than the poorest 10% of the world's population, combined. Social inequality is generally considered to be exponential as one traverses the strata of national and world societies from top-to-bottom.
Causes of social inequality Although there appears to be a consensus of what constitutes social inequality, there is far less agreement over the causes of it. A complex series of historical events has led to a current situation in which capital is much less available to common people in certain parts of the world; but which trends have been most important is open to debate. Some argue that inequality is in large part the negative consequence of destructive state policies (such as capitalism) and wars, past and present, while others see inequality as the natural consequence of social darwinism (see IQ and the Wealth of Nations).
Rather than catching up to the wealthier nations, many poor countries are falling further behind. Economists describe world inequality (among nations) as the "factor of 32" problem, since the ratio between developed world countries' per capita GDP and poor nations' GDP's is estimated to be about 32.
The Gini coefficient is one index used to measure inequality. Some studies have shown that global inequality has increased in the last 30 years, others counter that. Inequality within the United States has undisputedly increased.
Social inequality is sometimes considered disproportionate to societal advancement; for example, feudalist societies are usually considered to have had higher levels of social inequality than advanced democracies. Many purport that the increasing inequality within the United States represent national decline, and that if this process is not reversed, Europe will supplant it as world leader.
Often inequality is emergent. For example, the assumption is that most firms will act to maximize profits, which means paying each worker the lowest salary or wage he or she will accept. The result is that compensation matters are intentionally kept obscure by firms; some formally disallow discussion of salaries. However, this is illegal; one cannot be fired for disclosing ones' salary, excluding in certain government positions. Workers are often unsure of their "worth" to their respective firms, and matters of salaries and raises are determined in complex negotiation processes. Subconsciously, decision-makers in these types of negotiation processes are (aggregately speaking) more likely to favor men over women (and married men over single men) than the other way around.
Case for inequality Many accept inequality as a given, and argue that the prospect of greater material wealth provides incentives for innovation within an economy. Some modern economic theories, such as the neoclassical school, have suggested that a functioning economy requires a certain level of unemployment; other theories, such as Keynesianism and socialism, dispute this alleged positive role of unemployment.
Effects of social inequality Social inequality contributes to crime, and potentially revolution, such as the French Revolution.
People who live in poverty are more likely to lack adequate health insurance.
Longintudinal health studies have shown that societal inequality is a major cause of health problems such as atherosclerosis, and that these effects have been found in species of apes as well as humans. The "White Hall Studies" are an example of such a health study which followed a large group of British civil servants.
Equality debates There are many posited solutions from those who see social inequality as improper; these solutions usually concentrate on equality of outcome and/or equal opportunity.
The antonym of inequality is, of course, equality, but there is debate as to what "equality" should mean. Different definitions include:
See also
External link - Inequality topic at Worldrevolution.org (http://www.worldrevolution.org/guide/inequality)
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