Inequality refers to the uneven distribution of resources on the basis of
class, caste, religion, race, gender, age etc.
It can be in any area like in labor market, source of income, health care, education, in the form of gender inequality, social inequality, economic inequality etc.
Impact of inequality on Democracy and Growth:
(a) Class-conflict :
created two sections in society ,resulted in ever mounting social tensions and political discontent.
(b) Political Domination:
Rich dominate the political machinery, and promote their own exclusive interests, results in corruption, graft and social injustice.
(c) Exploitation:
Rich exploit the poor, leads to political awakening and then agitation. Thus inequality of incomes is an important cause of social and political instability.
(d) Creation of Monopolies:
Unequal incomes promote monopolies. These powerful monopolies and industrial combines charge unfair prices from the consumer and crush the small producers.
(e) Suppression of Talent:
It is not easy for a poor to make his way in life, however brilliant he may be. It is a great social loss that brainy people without money are unable to make their due contribution to social welfare.
(f) Undemocratic:
Democracy is a farce when there is a wide gulf between the rich and the poor. Political equality is a myth without economic equality.
(g) Moral Degradation:
The rich are corrupted by vice and the poor demoralized by lack of economic strength. The poor man finds it almost impossible to regain the virtues of honesty and integrity. Human dignity is lost altogether.
(h) Promotes Capital Formation:
In the present era of social and political awakening, it should be reduced, if not eliminated, like by Fixing Minimum Wage, Social Security, Equality of Opportunity, Steeply-graded Income Tax, Ceilings on Agricultural Holdings and Urban Property. For a better nation and people of this nation.
