What does the Gini coefficient measure?
The extent to which income distribution deviates from perfect equality within a country.
What do Gini scores of 0 and 1 represent?
0 = perfect equality; 1 = one person holds all wealth.
Approximate Gini scores: Canada vs. U.S.?
Canada ≈ 0.3; U.S. > 0.4.
Since the 1960s, how have global within-country inequality levels shifted?
Stable overall, but decreased in parts of Asia/Latin America, increased in North America, Europe, East Asia.
Why is wealth considered a better measure of inequality than income?
Wealth can be inherited, generates ongoing returns (stocks, assets), and confers power/security.
How do income and wealth disparities differ?
Wealth disparities are much larger than income disparities.
Why do stock markets and tax-free savings accounts (TFSAs) increase inequality?
They disproportionately benefit those who already have capital to invest.
Between 1981–2015, how much did Canada’s GDP per person grow vs. median hourly wage?
GDP per person grew 54%; median wage only 10%.
From 1988–2015, what share of income growth went to the bottom 10% vs. top 10%?
Bottom 10% = 3%; Top 10% = 30%.
In 2021, how did incomes change for the top 1%, top 0.1%, and bottom 50%?
Top 1% ↑ 9.4%; Top 0.1% ↑ 17.4%; Bottom 50% ↓ 6%.
According to Oxfam (2017), how concentrated is global wealth?
8 men held as much wealth as 3.6 billion people.
In Canada, how concentrated is wealth?
2 men held as much wealth as the poorest 30% (≈11 million people).
What is social mobility?
The ability to move up or down the social hierarchy.
How does high inequality affect social mobility?
Reduces it — advantaged groups resist redistributive policies, disadvantaged groups disengage.
What psychological effects does inequality create? (5)
Competitive mindset
social evaluative stress
lower trust
increased threat perception
narrowed social capital.
How does inequality affect political participation?
Poor people disengage, vote less, and become apathetic.
Why do advantaged groups resist hierarchy-attenuating policies under high inequality?
Greater inequality increases the perceived risk of “falling,” so they defend the hierarchy.
Is growing inequality inevitable?
No — reductions have occurred in Canada and other regions.
Why is equality of opportunity important?
It benefits both the economy and society, and undermining it harms justice and psychological well-being.
What happens if inequality is left unchecked?
It breeds more inequality, reduces mobility, and worsens social problems.