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Is Economic Inequality Really a Problem? A Review of the Arguments

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  • E. Wesley F. Peterson

    (Department of Agricultural Economics, University of Nebraska-Lincoln, Lincoln, NE 68583-0922, USA)

Abstract

Increasing economic inequality in recent years has triggered an outpouring of analysis and reflection on the causes and consequences of these changes. Several commentators have argued that inequality does not merit all the attention it has been receiving noting that the focus on inequality can divert attention from the real problem, which is poverty. This article reviews the arguments for and against this position, highlighting the effects of economic inequality on economic growth and efficiency, politics and democracy, individual behaviors that result in poor health outcomes and social disruption, social cohesion, and environmental degradation. Poverty is, of course, a very important social issue but this review of the arguments about inequality shows that economic inequality in itself is also an important social ill that should be addressed.

Suggested Citation

  • E. Wesley F. Peterson, 2017. "Is Economic Inequality Really a Problem? A Review of the Arguments," Social Sciences, MDPI, vol. 6(4), pages 1-25, December.
    • Handle: RePEc:gam:jscscx:v:6:y:2017:i:4:p:147-:d:121568
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    2. Rodica Pisica, 2022. "Effects of Income Inequality on Economic Growth: The Case of the Republic of Moldova," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(1), pages 407-416, September.
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    5. Yeboah, Samuel, 2023. "Balancing Growth and Green: Strategies for Sustainable Development in Developing Economies," MPRA Paper 118180, University Library of Munich, Germany, revised 20 Jun 2023.
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    7. Aiyar, Shekhar & Ebeke, Christian, 2020. "Inequality of opportunity, inequality of income and economic growth," World Development, Elsevier, vol. 136(C).
    8. Zhang, Xinmiao & Deguilhem, Thibaud, 2022. "Climbing the Social Ladder: Does Intergenerational Solidarity matter?," MPRA Paper 115241, University Library of Munich, Germany.
    9. Cano Macias, Ricardo & Ruiz Vera, Jorge Mauricio, 2024. "Dynamics of opinion polarization in a population," Mathematical Social Sciences, Elsevier, vol. 128(C), pages 31-40.
    10. Takeshi Kato, 2022. "Wealth Redistribution and Mutual Aid: Comparison using Equivalent/Nonequivalent Exchange Models of Econophysics," Papers 2301.00091, arXiv.org.
    11. A. Tidu, 2023. "Dissecting inequality: conceptual problems, trends and drivers," Working Paper CRENoS 202313, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
    12. Yusuf Bangura, 2019. "Convergence Is Not Equality," Development and Change, International Institute of Social Studies, vol. 50(2), pages 394-409, March.

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