Economic Inequality and the Gini Index

This set of flashcards covers key terms and concepts related to economic inequality and the measures used to quantify it, such as the Gini index.

Gini Index

A number that estimates inequality by comparing income or wealth distribution of an actual society to a perfectly equal one.

Perfect Inequality

Indicated by a Gini index of 1, where one person has everything and everyone else has nothing.

Perfect Equality

Indicated by a Gini index of 0, where everyone has exactly the same income or wealth.

Progressive Tax System

A tax structure where the tax rate increases as income increases, aimed at reducing inequality.

Government Transfers

Funds from tax revenues redistributed by the government to support various groups, such as retirees.

Digital Divide

The gap between those who have access to the Internet and those who do not.

Multibillionaires' Influence

Wealth concentration allows extremely wealthy individuals to control media and policy, influencing democracy.

Income Inequality

The unequal distribution of income within a population.

Wealth Inequality

The unequal distribution of wealth within a population.

Self-Reinforcing Power Dynamics

The notion that power and wealth concentration tends to reproduce inequality unless interrupted by systemic changes.