Inequality is both a driver and a symptom of today’s polycrisis—a convergence of social, economic, political, and environmental challenges. Disparity takes many forms and arises from a complex web of causes. Intersecting systems of discrimination and disadvantage reinforce inequity between groups, leading to a wide range of interconnected and compounding harms across society.
Inequality defined
In the most general sense, inequality refers to a situation where two values, quantities, or expressions are different in terms of size, degree, or circumstances. Social inequality is defined by the unequal distribution of power, privilege, wealth, resources, and influence. The most vulnerable groups and those most impacted by these disparities are the financially disadvantaged, women, and minorities.
Discrimination is one of the major ways that inequality is enforced. This can take the form of segregation, pay gaps, and limited access to opportunities such as education, employment, healthcare, and housing.
The uneven distribution of wealth and resources also makes marginalized groups more vulnerable. They have lower levels of resilience, and this makes it harder for these communities to withstand interconnected shocks like the economic fallout from inflation, unemployment, and trade disruptions. Inequality also worsens both physical and mental health outcomes for these groups.
10 key periods in the history of wealth disparity
Inequality has evolved in response to changes in economics, social dynamics, and political power. Although the wealth gap is sometimes viewed as synonymous with the Industrial Revolution, Alfani (Alfani, 2024) traces inequality to the regressive per-capita taxation of preindustrial fiscal systems, while others believe the origins may be far older.
Stone Age (3.4 mya – 4000 BCE)
Although nomadic prehistoric hunter-gatherer societies tended to share resources, this radically changed with the rise of agriculture and city-states. According to scholars and anthropologists, the dawn of inequity began around 10,000 years ago with the development of agricultural food surpluses.* This gave rise to the formation of rigid hierarchical structures, with some individuals or groups controlling land, labor, and trade, while others were subjugated and allotted fewer resources.
Ancient civilizations (c. 3000 BCE – 500 CE)
Ancient civilizations put complex social hierarchies like caste systems and slavery into place. During this period the powerlessness of the underclasses was codified in highly stratified, rigid social structures. In Mesopotamia, Egypt, Greece, China, and India, kings, priests, and aristocrats, controlled land and wealth, while slaves and peasants had very little control over anything.
Medieval period (500 – 1500 CE)
In medieval Europe and parts of Asia, the feudal system was the dominant social and economic structure. Kings granted land to nobles in exchange for military service, and peasants (serfs) worked the land under the control of the nobles. Feudalism entrenched inequality by locking peasants into low social positions, while a small elite enjoyed wealth and power. The church and the nobility held significant sway over both secular and spiritual matters, further cementing social hierarchies.
Early imperialism (15th – 18th centuries)
Imperialism, the policy of extending power and influence, is a driver of economic, political, and social disparities. During Early Imperialism, a period also known as the Age of Exploration & Mercantilism, European powers (Spain, Portugal, Britain, France, and the Netherlands), made territorial claims in the Americas, Africa, and Asia.
Colonialism (16th – early/mid 20th centuries)
European states established colonial empires that involved physical settlement and the direct occupation of foreign territories. Through extracting resources and enslaving or exploiting native populations, colonialism played a pivotal role in shaping persistent global inequalities. Colonialism created vast wealth for the elites while impoverishing and displacing indigenous populations. Racial and ethnic disparities were institutionalized, with Europeans positioned at the top of the social hierarchy.
High imperialism (late 19th – early 20th centuries)
Around 1870, early imperialism (Industrial & New Imperialism), gave way to high imperialism where the key players (Britain, France, Germany, Belgium, Italy, the U.S., and Japan) were motivated by industrialization, nationalism, economic expansion, and competition. This period came to an end in 1914 with the start of World War l.
Late imperialism & decolonization (mid-20th century–present)
This period is defined by resistance and weakening of colonial rule and nationalism. The emergence of Cold War Imperialism (1945–1991) saw the US and the USSR fight proxy wars that impoverished countries all around the world. We are currently in a period of Neo-Imperialismwhere the economic and political influence of powerful nations continues through multinational corporations, global trade, and financial institutions. Corporations exploit the cheap labor and resources of weaker countries, and global financial institutions (IMF, World Bank) use debt and financial controls to create economic dependency. To this day, nations continue to wield military and political force to influence weaker states and usurp their sovereignty.
Industrial revolution (18th – 19th Centuries)
The Industrial Revolution in Europe and North America dramatically reshaped societies and created new forms of economic inequality. The rise of factories and mechanized production generated immense wealth for industrial capitalists, while many workers were employed in harsh conditions for low wages. Urbanization and the growth of industrial economies led to the creation of a distinct working class, often living in poverty-stricken conditions in cities, while factory owners and entrepreneurs amassed large fortunes.
The rise of social and political movements (early 20th century)
The early 20th century witnessed significant social and political movements aimed at addressing the uneven distribution of wealth. In the last seven centuries, imbalances of both income and wealth have grown continuously. There are two exceptions, the century following the Black Death pandemic (1347- 52), and the period from the beginning of World War I until the mid-1970s. The 20s to the 70s saw the labor movement fight for workers’ rights, while women and civil rights movements sought to address gender and racial income gaps. The Great Depression of the 1930s and the post-World War II economic boom brought about social welfare reforms aimed at reducing disparities (e.g., Social Security, universal healthcare, education, and labor protections). At the same time, the rise of labor rights in the global South helped to challenge some of the entrenched vestiges of colonial inequality.
Globalization and technological innovation (late 20th century – 2024)
Driven by advances in technology, trade, and international finance, globalization created new wealth gaps. While global wealth has grown, the benefits have not been equally shared. The rise of multinational corporations and financial institutions has concentrated wealth among a small global elite, while many people, particularly those in developing countries, still live in poverty. In addition, technological advances have created new divides, with those who have access to digital technologies gaining significant advantages, while others are left behind. Income inequality, especially in rich nations, has increased since the 1980s, due in part to policies that favor the wealthy, such as tax cuts for the rich and deregulation of industries.
* Christopher Boehm (Hierarchy in the Forest, 1999), Yuval Noah Harari (Sapiens, 2014), Ian Morris (Foragers, Farmers, and Fossil Fuels, 2015) and Thomas Piketty (Capital and Ideology, 2019).
10 commonly used ways to measure inequality
Metrics that assess disparities between groups of people reflect discrepancies in power and influence. Inequality is commonly measured using statistical tools that quantify differences in income, wealth, access to resources, and other aspects of social and economic life. Here are 10 commonly used measures:
The Lorenz curve provides a graphical representation of income and wealth distribution. It plots the cumulative percentage of total income (or wealth) earned and graphically represents the extent to which the distribution deviates from an equal distribution.
The Gini Index is one of the most widely cited measures, it is a numerical representation of income inequality derived from the Lorenz curve.
The Atkinson index assesses the parts of the income distribution that contribute the most to the wealth gap. This metric incorporates inequality aversion which reflects a society’s appetite for reducing disparity.
The Poverty line (poverty gap) is a benchmark that defines the minimum income needed to maintain basic living standards. It measures the number of people below this benchmark and quantifies the shortfall.
The Palma ratio compares the income or wealth of the top 10 percent and the bottom 40 percent.
Income quintiles/deciles measure the gap between the income or wealth of the richest and the poorest 10 or 20 percent.
Disposable income is a measure of how much money an individual or a household has available to spend on goods and services.
The Human Development Index (HDI) assesses inequalities in access to essential services. It includes health (life expectancy), education (mean years of schooling), and standard of living (GDP per capita).
The Theil index measures the distance of a population from an ideal egalitarian state. Specifically, how much a given income distribution (subgroups, e.g., regions or sectors) is away from a perfect, uniform distribution of income.
The Gender Inequality Index (GII) assesses disparities in reproductive health (maternal mortality and adolescent birth rates), empowerment (political representation and educational attainment), and labor market participation (female and male labor force participation rates).
There are also other useful approaches including social mobility indices (the extent to which individuals or groups can move up or down the social and economic ladder over generations). Different dimensions of inequality require different methodological tools. So, for example, the Gini coefficient and quintile ratios are used to measure access to essential services like healthcare education, housing, and technology. Different metrics are often used together to provide a more comprehensive understanding, as no single measure captures the full range of disparities.
10 major types of inequality
Inequity can take different forms they can also dynamically coalesce in interacting clusters. Here are ten common examples:
Economic disparities are about differences in income and wealth, as well as access to capital, and material opportunities.
Social inequality is the condition where individuals or groups have unequal access to resources, opportunities, and social status based on class and/or educational attainment.
Political disparities reflect the unequal distribution of power and influence in political systems. It restricts access to democratic participation and limits representation in decision-making bodies.
Racial (ethnic) inconsistency refers to differences between racial and ethnic groups in terms of opportunities, treatment, and outcomes.
Gender gaps are about uneven treatment and differing opportunities, rights, and responsibilities based on sex.
Health disparities refer to access to healthcare as well as avoidable and unfair differences in health outcomes between different population groups.
Intergenerational inequality involves a tiny minority handing down wealth and privilege across generations, while many others remain trapped in repeating cycles of poverty and marginalization.
Cultural unevenness refers to differing levels of access to cultural resources, experiences, and recognition. This includes disparities in cultural capital—such as differences in knowledge, education, and social practices—as well as relatively fewer opportunities to see themselves represented in media, the arts, and cultural institutions.
Legal disparities are defined by the unequal treatment of certain individuals or groups within the justice system. These disparities can manifest as discriminatory practices in law enforcement—such as racial profiling—and in the courts through inconsistent sentencing. They are also evident in the limited access some communities have to legal resources and representation.
Environmental inequality refers to the uneven distribution of environmental benefits and burdens, often placing greater risks on marginalized communities. It also includes unequal access to essential environmental resources such as clean air, safe drinking water, and green spaces.
7 primary causes of inequality
Disparities are driven by a multifaceted set of factors that interact with one another. The causes behind the uneven distribution of wealth operate at multiple levels, but the primary systems that sustain it revolve around a lack of access to education, healthcare, and employment.
Many forms of inequality are sustained by discriminatory practices, especially in areas such as hiring, lending, and law enforcement. It can also be a byproduct of natural disasters or wars, where the loss of life, property, livelihoods, and social networks, creates economic and social instability. Here are six primary causes of inequality.
Economic factors
Jobs and wages are at the forefront of the economic factors that contribute to inequality. Fewer employment opportunities and lower wages keep people at the bottom end of the socioeconomic spectrum. Workers’ pay has not kept pace with inflation. The rising cost of living exceeds wages due to the rise of gig work, the decline of labor unions, and reduced workers’ bargaining power. Government policies that favor large corporations over small businesses have further eroded workers’ rights. Less real wages and limited opportunities for advancement have created a precarious working environment.
Neoliberal macroeconomic trends have contributed to income gaps and wage stagnation for low-skill workers, while increasing profits for multinational corporations and highly skilled professionals. Globalization has increased exploitative labor practices and widened the gap between the rich and the poor.
Inequality is also perpetuated by intergenerational wealth transfer. Wealthy people are born into the world with an immense advantage in the form of inherited assets. This gives them access to resources, while poorer populations have less access to either capital or credit.
Social factors
Unequal access to quality education and health care are primary drivers of inequality. Wealthier families provide better education and have access to better health care than those from disadvantaged backgrounds. Wealthier people also benefit from having more contacts and bigger social networks which they can draw upon for support and assistance.
Cultural factors
Disparities are often woven into social norms, beliefs, and ideologies (e.g., racism, sexism, nationalism). Through a lifelong socialization process, people inculcate a cultural prism that is replete with societal roles and social expectations. Media, education, and family dynamics, all have a role in the normalization of deeply ingrained beliefs premised on stereotypes, biases, and prejudices. As researcher Trevor Jackson explains, the cultural context codes disparities as “both necessary and just,” (Jackson 2023, p. 277). This shapes the way society views entire classes of people, which then influences public opinion and public policy.
Political Factors
Politics plays a critical role in managing the distribution of wealth. Public policies including everything from social welfare programs to labor regulations, can either reduce or exacerbate disparities. Rates of taxation are key. Lowering the tax burden of the wealthiest individuals and corporations (e.g. lower capital gains tax rates) widens the gap between the rich and the poor.
Underfunded social welfare including cuts to programs like education, healthcare, and public transportation, contribute to inequality. Corruption and poor governance can also significantly increase the wealth gap by diverting resources away from those who need them most. The deregulation of labor markets can increase imbalances by concentrating wealth and resources at the top.
Discriminatory policies in areas like employment, housing, and education can also perpetuate disparity as do laws and societal norms that restrict access to resources. Political inequality is also caused by voter suppression that prevents certain groups from participating in the democratic process.
Historical Factors
Historical injustices—such as slavery, colonialism, and segregation—continue to influence societal structures, contributing to inequality today. The subjugation, exploitation, and wealth extraction associated with imperialism create lasting disparities. One hundred and fifty years after slavery was abolished, the descendants of enslaved people are disadvantaged by lower educational attainment, poorer health outcomes, and limited economic opportunities, that trap them in intergenerational cycles of poverty.
Land ownership has historically been concentrated in the hands of a few, whether through feudal systems, land grants, or colonial land policies. The unjust distribution of land is another factor that continues to affect economic outcomes today.
Environmental Factors
Environmental factors exacerbate existing inequalities and disproportionately affect marginalized populations. Disadvantaged communities are exposed to health and safety hazards because they live in areas with higher levels of pollution that are more susceptible to things like climate-induced extreme weather events. Such events cause food shortages and price hikes, they can also disrupt the livelihoods of vulnerable people.
Lower-income populations often have less access to green spaces and natural resources, which can negatively impact their physical and mental health, they also lack the political power to address environmental concerns. Restricted access to resources has the add-on effect of increasing the likelihood of overexploitation, creating a vicious cycle of poverty and environmental degradation.
Technological Factors
The skills gap is widening the digital divide and increasing income disparity. While technologically educated workers benefit from increased demand for their services, those without such specialized knowledge are more likely to be replaced by skilled workers, automation, outsourcing, and AI.
People in poorer communities or rural areas sometimes lack access to basic technology like high-speed internet. This limits their ability to participate in the digital economy, access information, and improve their prospects.
6 effects of inequality
The unequal distribution of wealth has wide-reaching effects that can impact individuals, communities, societies, and nations. These effects can be economic, social, political, psychological, and environmental. The consequences of disparity are complex, and they commonly combine to create repeating cycles of disadvantage that can be difficult to break.
Morbidity and mortality
The uneven distribution of wealth is responsible for sickness and death. According to an Oxfam briefing, inequality contributes to the death of 21,000 people each day or one person every four seconds. It also increases poverty and contributes to hunger, while making efforts to address climate change and economic disparity more costly and less effective.
Social mobility
Inequality makes social mobility difficult for marginalized groups like those on the lower end of the socioeconomic spectrum. The unequal division of wealth limits access to key resources like education and healthcare and this makes it very hard for disadvantaged communities to improve their situation.
Macroeconomic impacts
In addition to adverse social and environmental impacts, the economic implications of inequality include increases in poverty that limit growth due to lower levels of consumer spending, innovation, and productivity.
Health effects
Inequality also has adverse physical and mental health effects. Economically disadvantaged people have worse overall health outcomes, and they experience more stress, anxiety, and depression.
Social unrest
Inequality that excludes marginalized populations from economic, social, and political processes breeds frustration which increases conflict, crime, and violence. It fosters division, undermines social cohesion, and reduces cooperation between groups. It also foments social unrest, extremism, and instability while making it more difficult to effectively respond to crises like pandemics, wars, and climate impacts. Together these factors weaken democracy and democratic institutions further alienating people from the shared instruments of decision making.
Overexploitation of natural resources
Inequality often results in the over-exploitation of natural resources, particularly when corporations or wealthy individuals control the means of production. This increases environmental degradation and resource depletion while contributing to feedback loops that negatively impact disadvantaged communities.
Who benefits from inequality?
Inequality primarily benefits individuals, corporations, and organizations that possess significant wealth and privilege. It does this by providing a steady supply of disempowered low-wage labor.
Those at the top of the socioeconomic ladder often justify their position with the false belief that poverty is the result of personal failure — that the poor are poor because of bad choices, and thus, their suffering is deserved. Former UK Prime Minister Margaret Thatcher echoed this sentiment when she described poverty as a “personality defect.” This classist narrative reinforces the myth that wealth is purely the result of hard work and merit, allowing the privileged to ignore the systemic barriers that keep others down.
In reality, those who benefit most from inequality often work to sustain it. They use their wealth to protect their interests by buying political influence and lobbying for tax breaks. The powerful shield themselves from accountability by sowing division, weakening collective action, and distracting people with diversions like scapegoating marginalized communities. This is about control. It’s not just a byproduct of the system — it’s a feature deliberately upheld by those who gain the most from it.
Conclusion: The perils of capricious inequality
For most of human history and increasingly today our status is conferred by the circumstances into which we are born. This is both capricious and arbitrary. Being born in a poorer country or a remote rural area can dramatically limit one’s opportunities. As Carl Sagan poignantly observed, “The idea that our sense of self-worth comes not from anything that we’ve done, not from anything worthy, but by an accident of birth, is where the crux of the humiliation is.”
The unequal distribution of income, resources, and wealth is not merely a question of fairness—it is a crisis with profound global consequences. Inequality inflicts immense suffering and deprives society of human potential, talent, creativity, and innovation. It fosters division, breeds resentment, and fuels political extremism, threatening the fabric of social cohesion and democracy itself. Inequality also intensifies existential threats like climate change. The future of humanity—and the health of our biosphere—may well depend on our collective ability to build more just and equitable systems.
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