Inequality of Income and Wealth

The Lorenz curve measures the distribution of income and weath in a country.

The Gini coefficient is a commonly-used measure of income inequality that condenses the entire income distribution for a country into a single number between 0 and 1: the higher the number, the greater the degree of income inequality.

Currently South Africa has the highest Gini coefficient at 0.63 

This is estimated by the World Bank.

We are ranked at 116 in the world, and 14 in Europe.

As of 2015 (which on the date of making this is the most recent official report) the UK's Gini coefficient is 0.33.

Area A divided by (Area A plus Area B)

Reworded version:

Area A / (Area A plus Area B)

Graph:

Income is a flow of money going to factors of production.

For example:

Wages and salaries from jobs, rental income of property, interest from savings, profits flowing to shareholds...

Wealth is the current value of a stock of assets owned by someone or society as a whole.

For example:

Savings in bank accounts, ownership of property, shares/stocks in businesses, wealth held in pension schemes.

Yes!

Increasing inequality in the distribution of income and wealth is an example of market failure. Resources would not be distributed equitably (when material assets are split unfairly given peoples circumstances.)

Equality is the state of being equal, especially in status, rights or opportunities.

Equity offers varying levels of support depending upon peoples needs to achieve greater fairness of outcomes.

Equality generally refers to equal opportunity and the same levels of support for all segments of society. 

Equity goes a step further and refers to offering people varying levels of support depending on the need to achieve greater fairness of outcomes.

• Stable prices (low inflation, the target is 2% in England) 
• Steady and sustained economic growth (growth of real GDP or National Output.)
• Low unemployment or full unemployment.
• Higher then average living standards (national income per capita)
• Improved global competitveness/Trade balence (BoP, which stands for balence of payments)
• More Equitable distribution of income and wealth.

Having more Equitable distribution of income and wealth is important because it can help people in poverty to achieve a better lifestyle.