KOLA PERUMAL CHETTY VAISHNAV

SENIOR SECONDARY SCHOOL

815, Kola Perumal School Street, Periyar EVR Salai, Arumbakkam Chennai-600 106

Phone No: 044-23631819, E-MailID:Kolaperumal@gmail.com

PROJECT REPORT
ENGLISH (301)

TOPIC
Economic Inequality

SUBMITTED BY
RAGHAVASIMHAN V
OF CLASS XII
(CBSE MARCH 2024)

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Economic Inequality

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 Acknowledgement
KOLAPERUMAL CHETTY VAISHNAV SR. SEC. SCHOOL
ARUMBAKKAM, CHENNAI

DEPARTMENT OF ENGLISH

I hereby express my sincere gratitude to the English Department

for giving me this opportunity to carry out this Project Work as
part of my class XII CBSE Curriculum. I am extremely thankful
to my English teacher Mrs.S.Sridevi who guided and supported
me the entire period and helped me complete my Project on
time. I extend my sincere thanks to my Principal
Shri.T.Ramasubramanian who had been a pillar of moral support
during the tenure of the Project. I also owe my thanks to my
Parents, friends and all those who have helped me in completing
my Project successfully.

Date: Signature of the candidate

Place:

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 KOLA PERUMAL CHETTY VAISHNAV
SENIOR SECONDARY SCHOOL
815, Kola Perumal School Street, Periyar EVR Salai, Arumbakkam Chennai-600 106

Phone No: 044-23631819, E-MailID:Kolaperumal@gmail.com

CERTIFICATE

This is to certify that the Project Work on the topic Economic Inequality

based on the CBSE curriculum of class XII ENGLISH CORE has been

completed by Raghavasimhan v, a class XII student of Kola Perumal Chetty

Vaishnav senior secondary school, Arumbakkam, Chennai – 600106, under

the guidance of Mrs.S.Sridevi during the academic year 2023 – 2024.

SIGNATURE OF THE TEACHER SIGNATURE OF THE PRINCIPAL

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 Index

S.no Contents Pg.No

1 Statement of purpose 6
2 Action Plan 7
3 Introduction 8
4 About Economic Inequality 9
5 Causes of Economic Inequality 10
6 How is Inequality Measured 12
7 Types of Economic Inequality 13
8 Consequences of Economic Inequality 14
9 Solutions to Economic Inequality 16
10 Effects of COVID-19 17
11 Relation with the poem 19
12 Conclusion 20
13 Student‟s Reflection 21
14 Bibliography 22

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 Statement of Purpose

This project will discuss about the term Economic Inequality

and its importance.

It will discuss about the types of Economic Inequality and look

into Economic Inequality‟s effects on the society.

It will also discuss the causes of Economic Inequality and its

possible solutions.

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 Action Plan

At the beginning of the academic year, we, the students were

briefed about the project and the topics. Following our selection
of topics comprehensive information and instructions related to
the project were provided. Surplus time was allocated for
planning and execution of the project. We prepared a sample
soft copy which was submitted to the teacher for the approval,
following her corrections and approval the project was
completed successfully.

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 Introduction

Economic inequality, the difference in the distribution of wealth

between the rich and the poor people, has been a subject of
debate for a very long time. It is a major concern in today‟s
society as the gap between the rich and the poor keeps
increasing and the poor are in a perpetual state of poverty. This
project will discuss the types, causes, consequences and
solutions to economic inequality. We will also discuss about the
different ways of measuring inequality.

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 About Economic Inequality

Colloquially referred as the gap between rich and poor, the term
Economic Inequality houses a deeper meaning. It is an Umbrella
Term for two categories Income Inequality and Wealth
Inequality which will be discussed in detail. Economic
Inequality can be measured across two or more countries or
within the same country. It can also be measured between sub-
populations such as within a poor income group or within a rich
income group. Economic Inequality is a major concern in the
modern society as the people who are poor are perpetually poor
and the people who are rich only keep getting more prosperous.
As of 2021 Forbes counted 2,775 billionaires in the world, and
the World Bank estimated that more than 711 million people
were living in poverty i.e, living on less than 1.90$ (<160 INR)
per day. Now this is a great improvement compared to 1990,
when a staggering 1.9 Billion people were living in poverty and
only had 269 Billionaires back then. But some people believe
that it still is mildly inexcusable that 711 Million people are
living in poverty and the combined worth of all the 2,775
billionaire‟s worth is 13.1$ Trillion. Globalization has helped to

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bring down inequality between countries; it has increased the
inequality within the population. Over the span of last thirty
years, approximately 90% of all developed countries have
increased their inequality.

Causes of Economic Inequality

Many factors contribute to economic inequality; few of them

have been discussed below.

Tax Structure

Tax structure in countries makes it such that lower – income

earners have to pay higher percentage of their incomes as tax as
compared to high-income earners.

Human Capital

In certain situations two workers may have the same

qualification one with higher experience and the other with less
experience, here the worker with more experience would be paid
more than the other worker with less experience.

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Social capital

People with powerful social connections are in a better position

to exploit economic opportunities.

Inheritance

People born in rich families will directly inherit the wealth from
their parents.

Technological Advancements

The rapid pace of technological advancement demands for

skillful and talented people, this leaves behind people who are
less skillful or in outdated expertise. Hence wage gaps and
income inequality can be observed

Globalization

Globalization has led to economic growth in the light of recent

years, but Multi National companies (MNCs) exploit the
developing countries by producing their goods there for lower
production costs leaving workers in developed nations face job
insecurity and wage stagnation.

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How is Inequality measured?

The most widely used one is given below.

The Gini coefficient

This method measures inequality from a given frequency

distribution. A Gini coefficient of 1 reflects means perfect
equality where all the wealth in a given region is distributed
equally and a value of 0 implies maximum inequality where in a
given region a single individual has all the wealth and the others
are left with none. This method was named after its inventor
Italian statistician and sociologist Corrado Gini.

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 Types of Economic Inequality

There are three major types of inequality

Income Inequality

In Economics it is the disparity in the distribution of income

between individuals or within group a group of population,
highlighting the differences in earnings between the more
affluent people of the society and the less affluent people of the
society.

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Wealth Inequality

Wealth inequality focuses on wealth distribution, including

property, investments and savings. Some families or individuals
may accumulate substantial wealth than others due to a variety
of factors, such as Inheritance, skills, education, social status etc.

Educational Inequality

Disparities in access to quality education can contribute to

economic inequality. Lack of education hinders the individual‟s
ability to acquire skills consequently there is a decrease in job
opportunities for that individual.

Consequences of Economic Inequality

Few consequences of Economic Inequality is are discussed

below

Social Stratification

Due to the gap between the rich and the poor economic
inequality often causes social stratifications in a population. This
leads to lack of trust, absence of social cohesion and erosion of
trust among the citizens.

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Political Instability

Excessive economic inequality can lead to political instability.

As the gap between the rich and poor keeps broadening, the lack
of political satisfaction arise between the citizens leading, this
dissatisfaction with the political and economic system can lead
to social unrest and political upheaval.

Health

Health is a major factor that gets affected due to economic

inequality. The richer portion of the population has access to
healthy food, hygiene surroundings and proper health care and
subsequently they lead a longer life. While the poor are not able
to access even the basic commodities or services.

Crime

According to researchers in countries where income inequality is

lower, crime rates are lower than in countries where there is
relatively more income inequality

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Debt

High income inequality has been the driving factor in growing

household debts. As high income earners increase the prices of
commodities, the middle class earners go deeper into debt trying
to maintain what once was a middle class lifestyle.

Solutions to Economic Inequality

Most probable solutions to Economic Inequality are given

below.

Educational Reform

Addressing educational reforms is crucial for breaking the cycle

of economic inequality. Investing in early childhood education,
access to quality schools can improve the individual‟s skills and
opportunities.

Proper Taxation

Implementing tax policies that make people with higher incomes

contribute a larger portion of their earnings as tax to support
public services. This helps redistribute the wealth and reduce
economic disparities.

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Corporate Social Responsibility

Encourage businesses to adopt ethical and socially responsible

practices such as fair wages and employee benefits can
contribute to more equal wealth distribution in the country.

Effects of COVID-19

The economic impact of lockdowns, business closures and

disruptions to employment has widened the income inequality
and has disproportionately affected the low-income workers.
Many lost their jobs or faced reduced working hours.

COVID-19 has highlighted economic inequalities. People in a

perpetual state of poverty are contracting and dying from the
virus as poor people can‟t afford health insurance, proper
medical care or any medical supplies such as hand sanitizers or
masks which are crucial to protect oneself from the virus.

Along with the low-income earners, „essential‟ workers were

also severely affected by the virus. Due to the nature of the jobs
of these workers, such as public workers, were exposed more to
the virus, and coupling that with their poor income; they were
easily infected by the virus.

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Statistical data suggest that these workers who earn as little as
15.0$ per hour have been disproportionately infected by the
COVID-19 outbreaks at work.

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 Relation with the poem “A Roadside Stand”

In the poem “A Roadside Stand” the author offers insights into

economic inequality.

The author describes a makeshift stall put up by rural family on

the side of the road, who is yearning to hear the squeal of car
brakes. They are longing for a customer to stop by and purchase
something from their stall; the poet describes this as “childish
longings”. Few cars do actually stop there, but only to turn
around or ask for directions. Some other people complain about
the board which was put up for the stall.

The author‟s portrayal of the family‟s effort to make a living of

the meager resources highlights the perpetual nature of poverty
and inequality, the family has limited access to education,
facilities and their economic opportunities are limited which
makes it harder to break free from their economic situation as it
is constrained by factors beyond their control.

While the poem does not explicitly address economic inequality,

its theme implies disparities in wealth and opportunities that
signify this societal challenge.

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 Conclusion

The overall inequality in the world has reduced significantly

compared to the 1990 but for the past few decades it‟s trickling
back down slowly. COVID-19 has left a lasting impact on the
poorer section of the society. The essential workers took a big
hit during the pandemic due to their lack of access to proper
healthcare and healthcare equipment such as hand sanitizers.

As a consequence; social stratification, increased household

debt, crime, reduced health can be observed in the low-income
section of the population

Economic Inequality is a challenge that requires coordinated

efforts to address its root causes. By implementing policies that
promote education, proper taxation, corporate responsibility
societies can strive towards a more equitable distribution of
wealth and create a foundation for sustainable economic growth.

It is our collective responsibility to build a future where the

benefits of economic progress are shared by all members of the
society.

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 Student’s reflection

The poet has done a great job at highlighting Economic

Inequality in the poem “A Roadside Stand”. It really expanded
my knowledge on this unseen side of economics and society. I
was also shocked to realize how much money was accumulated
with a very small percentage of the population. I also found it
odd that the economic inequality was decreasing for few years
since the 1990 but it‟s on the rise again. Economic Inequality is
a crucial issue in the society and has to be addressed
immediately.

There is much more to explore in this topic such as IHDI

measurement index as opposed to the Gini coefficient and many
types of inequalities like, Gender inequality, Regional inequality
and inter-generational inequality.

This was an extremely interesting topic and I definitely look

forward to explore in this topic in the future.

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 Bibliography

1) Wikipedia: https://en.wikipedia.org/wiki/Economic_inequality
2) Investopedia: https://www.investopedia.com/economic-inequality-
4845459
3) OECD Data: https://data.oecd.org/inequality/income-
inequality.htm

Thank you

Submitted by
Raghavasimhan V
XII-B

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