ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Income Inequality Has Been on the Rise Since the 1980s, and Continues Its Upward Trajectory. Income inequality in the US continues to rise, according to a report from the Congressional Budget Office.

Detailed explanation-2: -Household wealth inequality The study found that household wealth in Australia is very unequally divided. The highest 10 per cent of households by wealth has an average of $6.1 million or 46 per cent of all wealth. The next 30 per cent has an average of $1.7 million or 38 per cent.

Detailed explanation-3: -Australian Bureau of Statistics’ (ABS) Survey of income and housing, 2019–20 data shows the Gini coefficient for equivalised disposable household income in Australia fell slightly from 0.336 in 2007–08 to 0.324 in 2019–20, which indicates a slight reduction in income inequality (Figure 1).

Detailed explanation-4: -The rise in net worth of well-to-do Americans is attributed to the stock market boom, high interest rates paid on certificates of deposit and similar investments, and to the explosion in home prices throughout much of the ‘80s.