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Provide a paragraph or two as to why Income Equality is a study of interest and...

Provide a paragraph or two as to why Income Equality is a study of interest and its potential benefit.

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Understanding income inequality helps to understand the effect of growth on overall population and living standards. Measures like GDP, GNP would help to understand the economic growth of the country but do not tell about growth of individual income. So income inequality helps to understand, is the growth of the economy is uniformly distributed with the all or is it being getting concentrated in the hands of few rich people. This helps to know the income gap between rich and poor so as whether is increasing or decreasing so that the living standards and purchasing power can be understood. So governments can decide on taxation policies so that the income gap could be reduced.

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