Economic inequality is on the rise in the current generation where it not only exists among individuals, but also among communities and countries. Though economic inequality is more in poor countries like Latin America and Africa, it also exists in a wealthy nation like the United States of America. The gap between the rich and the poor, income differences, and disparity in wealth can be termed as Economic Inequality.

Many factors play a role in increasing the gap between the rich and the poor. Labor markets, racism, gender, technological changes in the society, education, computerization, culture, taxes and many more are instrumental in widening the gap and making the rich, richer and the poor, poorer. The gap in wages along with the global financial crisis also added in making the disparity more obvious and tangible and this trend of wealth chasm which is on a rise can be a threat to the economic growth of any country.
Each country should word towards reducing this economic inequality by raising the income level of the workers who are the poorest, better tax benefits, and also try to reduce the income inequality due to the difference in each one’s education. There should also be appropriate policies in each country that help in addressing this problem and resolve it rather than making matters worse. This widening issue is becoming a big challenge of our times and the gap between the poor and the rich is at its highest now and this inequality dampens the growth of any country by causing financial, economic, and political instability.

S. Han