Wealth Inequality Explained in Under 1 Minute

Wealth inequality is about more than just simply having more money in your pocket than somebody else. It involves ownership of land, industries, resources, and even access to the halls of power. Simply defined, wealth inequality refers to the unequal distribution of assets, in a group of people. But what causes wealth inequality to begin with? It lies mostly in the nature of the free market. Every free market economy Is made up of individuals free to make decisions about what they want to acquire and sell. However, the more people exchange money, the more it unevenly ends up in the hands of a few. This uneven distribution happens no matter what, in what is called, a Pareto distribution. Nobody knows why this happens, although policy is put in place to make sure that this doesn’t get out of hand. But this alone isn’t enough to justify these egregious gaps.
Wealth inequality is accelerated by,
1.Relaxation of laws and regulations,
2.Rise of technical innovation such as AI and automation,
3.General Peace and prosperity,
4.Globalization, and
5.Decline in value of the minimum wage.
In a nutshell, that's wealth inequality. We go into depth about whether wealth inequality can be eradicated in this video right here. Don’t forget to leave a like and subscribe and we’ll see you all in the next one #incomeinequality #wealthinequality #unsolved