Review on Income Inequality

Essay from the year 2018 in the subject Economics - Other, grade: 7,00, Maastricht University, language: English, abstract: Firstly, the paper shows evidence on the extent of income inequality in India, as a representative example. Then it takes a broader view of the topic and identifies the causes of income inequality. Thirdly, it describes the general problems associated with income inequality and then explains the advantages associated with income inequality. During the examination of this aspects, the paper will focus on the economic background, especially on aspects such as the equity-efficiency-trade-off, taxation and the role of the government, as well as on the deadweight loss. Then it will analyze what the government can do to deal with that problem. Finally, it summarizes and compares the findings of this paper.