USA HISTORY

Detailed explanation-1: -Income inequality is rising. A quarter of a century ago, the average disposable income of the richest 10% in OECD countries was around seven times higher than that of the poorest 10%; today, it’s around 9½ times higher.

Detailed explanation-2: -Reasons for the wealth gap To discover why this gap emerged, the researchers broke wealth down into three key drivers: differences in saving rates; wages; and capital gains rates. During the decades surveyed, the research showed that house prices had gone up dramatically in both regions, as had financial asset prices.

Detailed explanation-3: -Effects of income inequality, researchers have found, include higher rates of health and social problems, and lower rates of social goods, a lower population-wide satisfaction and happiness and even a lower level of economic growth when human capital is neglected for high-end consumption.

Detailed explanation-4: -An income gap refers to the difference in income earned between demographic segments.

Detailed explanation-5: -Economic inequality is the unequal distribution of income and opportunity between different groups in society. It is a concern in almost all countries around the world and often people are trapped in poverty with little chance to climb up the social ladder.