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INCOME INEQUALITYPresented by:

Lovelyn A. AbanganMs. AmidoMr. ArevaloSection: MM 2-6INCOME INEQUALITYThe unequal distribution of household or individual income across the various participants in an economy. Income inequality is often presented as the percentage of income to a percentage of population.

Ameasurementof thedistribution ofincomethat highlight gap betweenindividuals orhouseholdsmakingmost of the income in a givencountry and those making very little.

Why is Income Inequality a problem?Increasing inequality depresses demand since consumption levels depend more on the wages of those at the lower end of the income scale, than the profits of the wealthy.

In the face of stagnating wages, households rely increasingly on debt to maintain their lifestyles with rising asset prices, especially in residential housing, worsening this.

Inequality doesnt bring growth, it brings economic instability.

Snowballing wealth at the top increases risky financial speculation.

Causes of Income InequalityGlobalizationEducationSkill-biased technological changeRace and gender disparitiesIncentivesImmigrationWage theftTaxes on capitalEffects of Income InequalityPositive EffectsInequality Drives Economic GrowthInequality Increases Fairness

Negative EffectsInequality Decreases EducationEconomic Inequality Increases Political InequalityInequality Decreases HealthInequality Increases CrimeInequality Stifles Growth

Solution used by the Government in Economic InequalityCreate jobs by investing in infrastructure, developing renewable energy sources, renovating abandoned housing and significantly increasing affordable housing investments, and making other commonsense investments to revitalize neighborhoods.Invest in human capitalby expanding access tohigh-quality and affordable childcareandearly education.Ensure that workers with disabilities have afair shot at employment and economic security.Enact comprehensive immigration reformthat provides a pathway to citizenship for undocumented immigrants.Close tax loopholesthat benefit the wealthy and special interests and raise taxes on capital income.Protect and strengthen investments in basic living standardssuch as nutrition, health, and income insurance. Thanks For Watching!!