section_path: Macroeconomics/Inequality
section_name: Inequality
paragraph_text: Inequality
  
  Economic inequality includes income inequality, measured using the distribution of income (the amount of money people receive), and wealth inequality measured using the distribution of wealth (the amount of wealth people own), and other measures such as consumption, land ownership, and human capital. Inequality exists at different extents between countries or states, groups of people, and individuals. There are many methods for measuring inequality, the Gini coefficient being widely used for income differences among individuals. An example measure of inequality between countries is the Inequality-adjusted Human Development Index, a composite index that takes inequality into account. Important concepts of equality include equity, equality of outcome, and equality of opportunity.
  
  Research has linked economic inequality to political and social instability, including revolution, democratic breakdown and civil conflict. Research suggests that greater inequality hinders economic growth and macroeconomic stability, and that land and human capital inequality reduce growth more than inequality of income. Inequality is at the centre stage of economic policy debate across the globe, as government tax and spending policies have significant effects on income distribution. In advanced economies, taxes and transfers decrease income inequality by one-third, with most of this being achieved via public social spending (such as pensions and family benefits.)