Socialinequality is usually the result of unfair inter-social treatment (biases and prejudices) and unjust government regulations. Social inequality can be further broken down into two types: direct and indirect.
Direct Social Inequality occurs when unfair treatment of a group (or groups) is deliberate and can be present in both community or government capacities. Direct inequality is a purposeful act that takes away resources, opportunities and/or rights from some and not others. Examples include:
Indirect Social Inequality occurs when unfair treatment of a group (or groups) is not the explicit purpose of a policy or action, but still results in social inequality. Examples include:
Pachamama Alliance supports the work of several Indigenous communities in the Amazon, including the Achuar who are protecting their land, culture, and rights from extractive industries encroaching on their territories.
The Achuar experience indirect social inequality by virtue of policies and behaviors that perpetuate destruction of their homeland. When we as consumers, for instance, continue to drive demand for fossil fuels, it results in governmental policies that favor oil companies over the rights of Indigenous communities. When their land is seized or otherwise degraded, the Achuar are unjustly, unfairly, and unequally bearing a burden that governments and corporations around the world have imposed upon them.
The incomes of the poorest 40 per cent of the population had been growing faster than the national average in most countries. But emerging yet inconclusive evidence suggests that COVID-19 may have put a dent in this positive trend of falling within-country inequality.
The pandemic has caused the largest rise in between-country inequality in three decades. Reducing both within- and between-country inequality requires equitable resource distribution, investing in education and skills development, implementing social protection measures, combating discrimination, supporting marginalized groups and fostering international cooperation for fair trade and financial systems.
Discrimination has many intersecting forms, from religion, ethnicity to gender and sexual preference, pointing to the urgent need for measures to tackle any kind of discriminatory practices and hate speech.
Reducing inequality requires transformative change. Greater efforts are needed to eradicate extreme poverty and hunger, and invest more in health, education, social protection and decent jobs especially for young people, migrants and refugees and other vulnerable communities.
Within countries, it is important to empower and promote inclusive social and economic growth. We can ensure equal opportunity and reduce inequalities of income if we eliminate discriminatory laws, policies and practices.
Governments and other stakeholders can also promote safe, regular and responsible migration, including through planned and well-managed policies, for the millions of people who have left their homes seeking better lives due to war, discrimination, poverty, lack of opportunity and other drivers of migration.
10.3 Ensure equal opportunity and reduce inequalities of outcome, including by eliminating discriminatory laws, policies and practices and promoting appropriate legislation, policies and action in this regard
10.6 Ensure enhanced representation and voice for developing countries in decision-making in global international economic and financial institutions in order to deliver more effective, credible, accountable and legitimate institutions
10.A Implement the principle of special and differential treatment for developing countries, in particular least developed countries, in accordance with World Trade Organization agreements
10.B Encourage official development assistance and financial flows, including foreign direct investment, to States where the need is greatest, in particular least developed countries, African countries, small island developing States and landlocked developing countries, in accordance with their national plans and programmes
Finance and foreign ministers call for remaking the international financial system in the interest of developing countries First Preparatory Committee meeting of the Fourth International Conference on Financing for Development concludes in Addis Ababa with [...]
Senior UN officials on Friday reiterated the catastrophic humanitarian situation in Gaza, and escalating threat to aid workers, urging immediate action prevent further deterioration. Read Full Story on UN News
Racial inequality is the unequal distribution of resources, power, and economic opportunity across race in a society. While the discussion of racial inequality in the United States is often focused on economic inequality, racial inequality also manifests itself in a multitude of ways that alone and together impact the well-being of all Americans. This includes racial disparities in wealth, education, employment, housing, mobility, health, rates of incarceration, and more.1
There are, of course, moral, legal, microeconomic, and other reasons to promote a more just and equitable society. In a series of blog posts over the coming months, we will focus on the economic argument for reducing racial inequality. The economic cost of racial inequality is borne not just by the individuals directly faced with limited opportunities, but also has spillovers to the entire U.S. economy. Especially as the country becomes more racially diverse (see Figure 1), inequality poses an ongoing threat to our individual and collective economic welfare.
Notes: Hispanic refers to anyone of Hispanic ethnicity, regardless of race. The remaining groups exclude anyone of Hispanic ethnicity. Prior to the 1980 decennial census, individuals were not directly asked about whether they were of Hispanic origins. For data before the 1980 decennial census, Hispanic is imputed by IPUMS.
Source: Treasury calculations using U.S. Census Bureau data from IPUMS. Steven Ruggles, Sarah Flood, Sophia Foster, Ronald Goeken, Jose Pacas, Megan Schouweiler and Matthew Sobek. IPUMS USA: Version 11.0 [dataset]. Minneapolis, MN: IPUMS, 2021.
Below we briefly discuss the origins and persistence of inequality in the United States, highlight some of the key economic indicators of its impact, and give an overview of the issues we will explore in more depth in future posts.
While the most targeted racist laws and policies have been repealed or otherwise abandoned, subsequent policies, uneven enforcement of equal protections, and a failure to invest in individuals harmed by de jure and de facto discrimination has resulted in vastly limited opportunities and stark inequities between white and non-white Americans that have continued to this day. For example, maps drawn by the Home Owners Loan Corporation, a now defunct federal agency, to portray the relative riskiness of lending across neighborhoods in the 1930s were used by banks to deny access to credit to residents of the lowest-rated neighborhoods, who were often racial and ethnic minorities, though these policies also hurt poor white individuals.7 Moreover, this conduct depressed home ownership rates, house values, and rents and increased racial segregation in low-rated neighborhoods in subsequent decades, highlighting the lasting, negative economic consequences of racism on the community and on future residents of these neighborhoods, regardless of race.8 These and other policies and actions not only led to continued racial disparities in access to resources and opportunities, they also led to differences in the extent to which people of different races benefit from the resources and opportunities they already possess.9
These disparities are evident in the persistent over-representation of Black and Hispanic Americans among the population in poverty in the United States and in the widening of the racial wealth gap in recent decades.10 While the poverty rates for all racial and ethnic groups had been declining prior to the COVID-19 pandemic (see Figure 2), the gaps between the rates for Black and Hispanic Americans and non-Hispanic white Americans has remained relatively constant since the early 2000s. At the same time, the gap in average net wealth between Black and Hispanic households and non-Hispanic white households has widened significantly (see Figure 3).
Large educational disparities, coupled with racial discrimination in the labor market and other factors, lead to pronounced differences in economic security across racial groups. In 2019, the unemployment rate was 6.1 percent for both Black and American Indian or Alaska Native adults, compared to just 3.3 and 2.7 percent for white and Asian adults, respectively. Similarly, the rate for Hispanic adults was 4.3 percent and only 3.5 percent for non-Hispanics.13
Racial disparities in educational and economic outcomes not only impact the economic well-being of racial and ethnic minorities, they have also been shown to inhibit economic growth for the U.S. economy as a whole, which affects the economic security of every American, regardless of race. For example, recent research by economists Chang-Tai Hsieh, Erik Hurst, Charles I. Jones, and Peter J. Klenow shows that up to 40 percent of growth in U.S. GDP per capita between 1960 and 2010 can be attributed to increases in the shares of women and Black men working in highly skilled occupations, likely due to changes in social norms that previously hindered talented women and Black men from pursuing their comparative advantage.15 This research suggests that sexist and racist social norms prevented the U.S. economy from reaching its full potential and that working to ensure that every American has an equal opportunity to pursue the career he or she chooses should improve economic outcomes for all.
Racial gaps in well-being extend beyond educational attainment and economic security. Health disparities, for example, also begin early in life and persist over the lifespan. Black and Hispanic Americans face higher rates of child abuse,16 lead exposure,17 obesity in childhood,18 and chronic illness in adulthood than white Americans.19 These groups often experience restricted access to quality health care, an issue further illuminated by the recent global pandemic. Compared to white non-Hispanic Americans, Hispanic, Black non-Hispanic, and American Indian or Alaska Native non-Hispanic Americans are 1.8, 1.7, and 2.1 times more likely to die from COVID-19.20 Moreover, as the COVID-19 pandemic has shown, the inequitable distribution of healthcare in the United States can negatively impact the health of all Americans, including those with access to high-quality services.
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