Income inequality refers to the uneven distribution of income among a population within a society. It is distinct from wealth inequality, which focuses on the distribution of assets like property, stocks, and savings. Both are important aspects of economic inequality, a broader term encompassing disparities in both income and wealth.

It’s important to note that the debate over the optimal level of income inequality is ongoing. However, the current levels in many countries, particularly the U.S., are generating significant concern due to the negative impacts on economic growth, social well-being, and democratic institutions.

Income inequality refers to how unevenly income is distributed throughout a population. The less equal the distribution, the greater the income inequality. Income inequality is often accompanied by wealth inequality, which is the uneven distribution of wealth.

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