Income and wealth inequality in the UK
Income and wealth inequality are issues in Scotland and the UK. Although most people would agree that society should aim to be more equal, complete equality within a capitalist (individuals retain most of wealth) society is not possible.
Video - Social inequality in the UK
Watch this video explaining social inequality in the UK and different strategies used to tackle inequality.
Social inequality in the UK
What is income?
Income is generally understood to cover a person’s earnings from their employment, dividends from shares and stocks, pension payments etc.
What is wealth?
Wealth includes income but also the total value of a person’s assets, eg housing, personal possessions such as artwork or jewellery, money in the bank, the value of stocks and shares, etc.
How can we measure income inequality?
ճ The formula used to calculate income inequality. attempts to measure income inequality within a society and to allow comparisons between countries. Depending on which way statistics are presented, the nearer a country is to zero the lower the level of inequality.
For example, a zero Gini coefficient rating represents perfect income equality where everyone's income is equal. On the other hand, the nearer a country comes to one the greater the income inequality.