Economic equality
Topic: Equality and Social Justice · NCERT: Class 11, Ch 3 "Equality"
Meaning
Economic equality means there are no large gaps in wealth, property or income between individuals or classes. It can be measured by the gap between the richest and the poorest, using tools such as the Gini or Palma ratio, or by counting how many people are below the poverty line. Absolute economic equality has never existed in any society. So democracies try to give everyone equal opportunities, so that people at least have a fair chance to improve their position. Art. 39(b)-(c) of the Constitution asks the state to prevent wealth from piling up in a few hands.
Example
According to the World Inequality Report, India's top 10% take about 58% of income, while the bottom 50% get only about 15%. A gap this large shows how far India is from economic equality.
Don't confuse with
- Equality of outcome: this is the goal of actively making incomes and wealth equal. Economic equality describes the absence of large gaps, which democracies usually pursue through equal opportunity.
- Entrenched inequality: this is economic inequality that stays with the same families for generations.