Economic equality is defined as the economic difference found among individuals in groups or among countries. It is sometimes referred to as income inequality, the wealth gap, or wealth inequality. Generally, economists generally focus on economic inequality in three metrics: income, consumption, and wealth.
Economic inequality varies between historical periods, societies and economic structures. The term can refer to the distribution of wealth or income at any particular time. There are many numerical indexes that are used to measure economic equality. However, the Gini coefficient is the most widely used method.
According to studies, economic disparity is a social problem. Too much inequality is destructive because it hinders long-term development. In addition, too much income equality is destructive because it reduces the incentive for productivity and the need to take risks and create wealth.
In many countries, economic inequality is caused by government failure to distribute resources fairly. Many governments are not providing poor people with shelter, employment, education, old age security and health care. One main reason for this state of affairs is the failure of government policies to make society more democratic and fair.