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Cause Of Economic Inequality

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Question: What are the causes of inequality? Explain How does it affect the economic development of a country?
Answer:
There is a big difference noticed in the incomes of the people in almost all developing countries. the third world countries which have experienced relatively high rate of economic growth by historical standards began to realize that such growth had not brought any difference to the to the teeming poors of their inhabitants. Standard of living began to fall in real terms. The income distribution thus, seemed to become less equitable with each passing day and the poor had begun to harbor the feeling within their mind that rapid economic growth had failed to remove poverty. There is thus a great difference between the rich and the poor. The gap between the Have’s and the Have not’s does not seem to be giving way to the conciliation. This condition is termed as Inequality.
Some studies have emphasized inequality as a growing social problem. Too much inequality can be destructive, because income inequality and wealth concentration can hinder long term growth. Early statistical studies comparing inequality to economic growth had been inconclusive. Economic inequality varies between societies, historical periods, economic structures and systems. The term can refer to cross sectional distribution of income or wealth at any particular period, or to the lifetime income and wealth over longer periods of time.

CAUSES:
There are many reasons for economic inequality

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