What is the wealth gap? –
Wealth gaps are situations where a small number of people own the most wealth. They have been an issue under discussion in countries like the UK and USA.
Wealth gaps mean that most people are poorer. Money is not shared equally across the country when there is a wealth gap.
What creates wealth gaps? 📉
The main thing that separates the rich from the poor is income.
Income is how much money you make from your job and investments.
Income decides how many resources you have – things like a house, emergency savings, or car.
Why could a wealth gap be bad? 😥
A gap in income could mean that poorer people have less access to important resources like houses, emergency savings, or cars.
However, the wealth gap is more than just income inequality.
Wealth gaps also include unequal access to opportunities, such as quality education and even healthcare in some countries. 🏫
It can be argued that people who grow up poorer get worse access to education and healthcare, compared to people who grow up wealthier.
The wealth gap has been getting wider because rich people are earning more, and poor people are earning less.
It is a hotly debated topic in the news, with some even proposing a “wealth tax” on very rich individuals to reduce how wealthy they are, and to help spread money more equally across the country.
So that’s it!
Hopefully you’re feeling more confident about understanding what the wealth gap is.
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