Economic Equality

Economic equality refers to the state of fairness regarding economic progress in an economy. The growth elements are not distributed to the advantage of any particular group. There are no highs and lows but a prevailing balance in terms of access or use of resources.

Equality in terms of economic conditions reduces poverty and promotes social welfare. It provides wide access to necessities, wealth, health and education to all segments of the society. The equal distribution of resources positively affects rising consumer demand, innovation and the development of society, its economy and prosperity.

Economic equality refers to the economic condition where the growth, distribution and access to resources (capital, goods etc) are balanced between all segments of the society. In such an economy, there will be equal access to benefits and opportunities available in the society regardless of the socio-economic status of people. The main aim of promoting equality is the reduction of income disparities and the promotion of social justice.  

Equality in economic terms may not always indicate equal treatment (or reward or wages) for all members in all circumstances. It means fairness in providing adequate opportunities for everyone to work or earn.  This includes fulfillment of their basic, primary needs apart from equitable distribution of resources and wealth amongst the people in a society.  

Equality in distribution also contributes to the stability of an economy. Without equality, differences among different segments (cultural and ethical differentiations) stand out. In societies with economic differences, there are high chances of political unrest. Hence, governments ensure that there are enough policy interventions to prevent such unrest. It can be through progressive taxation, investment in public infrastructure, free education and health, social welfare programs etc. Furthermore, the efforts may also include fair labor and market practices.

Let us look at some examples to understand the concept better:

Example #1

Imagine there is a town called "XYZ" in the U.S. that has not progressed much. The government of XYZ decided to implement a policy that teaches vocational courses and trains people to attend interviews in big cities. The youth of the town now have the opportunity to learn skills and equip themselves to gather opportunities the same way someone from a city does. This is a means of achieving economic inequality in the region. 

Example #2

The Lagos state (Nigeria) has establisheda coalition as a step towards economic empowerment. It aims to enhance the economic policy implementation to facilitate improved access for women to the procurement of opportunities (both public and private). This move is to address gender disparity in accessing economic opportunities, which is an issue of economic equality.

Given below are general suggestions on how economic equality can be achieved:

#1 - Implementation of progressive taxation

The progressive taxation system taxes the rich higher and the poor lower. This prevents the rich from accumulating more money, and people with low incomes are deprived of it.

#2 - Introduce welfare policies

The government can decide what type of policies to implement based on socio-political and economic situations. The policies support the growth of society's members so that they are not pushed further into poverty. This is one of the steps that helps in achieving social equality, which may require interventions such as the Women's Economic Equality Taskforce for gender equality.

#3 - Investment in imparting skills and education

The country shall invest in public health and educational initiatives that train the members of the society. This makes them eligible to grab the opportunities that are available in the economy.

#4 - Employment opportunities and encouragement of wealth-building activities

The government shall come up with employment opportunities and wealth-building activities through the encouragement of starting a business. This not only provides employment but also feeds innovation. Innovation cultivates growth in an economy.

Given below are some of the benefits of economic equality in an economy.

#1 - Social welfare

Equal distribution of resources reduces social tension and improves economic stability. This eliminates resentments, promotes a sense of belonging among the members, and strives toward growth and prosperity.

#2 - Economic growth and development

When members of a society are given equal opportunity, growth and development happen evenly. This balanced growth speeds up the economic progression and wealth of the nation.

#3 - Innovation and productivity

Equality motivates people to work harder. When basic needs are met and opportunities are guaranteed, individuals will work for their own and society's betterment.

#4 - Stable political environment

Disparities create differences, and differences create political tensions. When there is social and political unrest, much of the country's resources are going to solve it. This hinders social and economic equality and progress.

#5 - Reduction of crimes

Equal distribution of resources helps satisfy people's basic needs. When their basic needs are satisfied and their survival is ensured, crimes are reduced. This leads to a peaceful society.

Given below are some of the differences between both concepts

#1 - Concept

Economic equality refers to the fair and equal distribution of resources, income and wealth.

Income inequality refers to the economy's unequal distribution of resources, income and wealth. They are unfairly distributed in society.

#2 - Impact

Equality in terms of economy aids in the promotion of economic growth, innovation, social welfare, peace etc.

Economic inequality, on the other hand, leads to social unrest, political instability, and poor economic growth.

#3 - Essence

Equality, in economic terms, helps improve society through positive interventions. It promotes development in health and education, which leads to sustainable development.  

Economic inequality promotes uneven economic growth and uneven access to health and education. It also does not support sustainable development.