What Is the Poverty Gap?

The gap between the rich and the poor is also called inequality, income inequality, etc., and refers to the wealth gap between individuals in a group or society. Potential harm to society, such as rising crime rates, caused by the wealth gap.

The gap between rich and poor

The gap between the rich and the poor is also called inequality, income inequality, etc., and refers to the wealth gap between individuals in a group or society. Potential harm to society, such as rising crime rates, caused by the wealth gap.

There are many reasons for the gap between the rich and the poor, which are affected by different factors. There is a gap between the rich and the poor in various countries and regions as well as individuals. Vulnerability speculation is unreasonable for nothing.

Chinese name

The gap between rich and poor

Foreign name

Economic inequality

Metrics

If a country always has a large number of absolute poor people, its economic momentum is insufficient, and the ups and downs are bound to inevitably affect everyone. The unfair distribution of social wealth, the polarization of the rich and the poor, and the abnormal concentration of social wealth will inevitably lead to social instability. China's 5,000-year history proves this beyond words.

The income gap is too large and wealth is too concentrated, which is enough to pose a considerable threat to economic development. The contrast between South Korea and the Philippines is a classic example. Around 1960, many economic indicators of the two countries were similar, including population, GDP per capita, urbanization, primary and junior high school enrollment. The starting point is the same. South Korea s economy tripled after half a century, becoming the "

In October 2005,

Earlier studies had argued that greater economic inequality would impede economic growth, but these conclusions were later considered wrong because the studies did not take into account that improvements in the gap between the rich and the poor often take years to obtain in economic growth and development It also reflects the greater equality and economic growth decisively.

World Gini Coefficient Chart

The Gini coefficient has a history of more than 100 years. The index divides countries on a scale of 0.00 to 0.50, and the countries with a score of 0.50 are the most unfair. The CIA World Yearbook uses the Gini coefficient to measure income disparity across countries. The figure above uses CIA data. The countries with the greatest wealth gap are marked in red, and the fairest countries are marked in green. It is impossible to make an accurate comparison of more than one hundred countries around the world, and each country has different perceptions of poverty. But in absolute terms, the gap between the rich and the poor can still be measured.

Gap between the rich and the poor

The gap between the rich and the poor in the United States is worse than in almost all countries in West Africa, North America, Europe, and Asia. The color of the United States in the picture is purple and the Gini coefficient is 0.450, which is very close to the extreme unfair bottom, and is at the same level as Cameroon, Madagascar, Rwanda, Uganda, Ecuador and other countries.

In summary: Although the gap between the rich and the poor in the United States and China is as great, the gap between the rich and the poor in the United States is not because of poverty, but rich people are too rich.

Gap between rich and poor China

Since the reform and opening up of China, while the economy has grown, the gap between the rich and the poor has gradually widened, and the Gini coefficient has crossed 0.4 to 0.46. The gap between the rich and the poor in Chinese society has exceeded a reasonable limit. The lowest-income population of 20% of the total population accounts for only 4.7% of the income, while the highest-income population of 20% of the total population accounts for 50% of the total income. It is prominent in the income share gap and the income gap between urban and rural residents is further widening, the income gap between residents in the east, central and western regions is too large, and the disparity between the high and low income groups is wide.

At the same time, the Gini coefficient of Chinese rural residents reached 0.3949 in 2011, which is approaching the international warning line of 0.4. The data show that the income gap between the 20% sample farmers with the lowest income and the 20% sample farmers with the highest income is 10.19 times. Data show that the Gini coefficient of Chinese rural residents reached 0.3949 in 2011, which is approaching the international warning line of 0.4.

On May 13, 2015, the National Health and Family Planning Commission held a regular press conference, announcing the results of China's first government-led nationwide household tracking survey "China Family Development Report 2015". It was suggested that the income of the household with the highest 20% is 19 times that of the household with the lowest 20%. ^[1]