-what are some of the dimensions of economic inequality and what is considered income? Capitalism and Inequalityis done by different entities using different measurements,resulting in a disparity in outcomes. In fact, commonly, wealthis narrowly defined as financial wealth-namely, cash on handand the money value of tangible and nonliquid assets. Even justthe market valuation of financial portfolios is commonly used todefine financial wealth. However, some may extend the definitionto include the value of income streams and insurance rights that,for the most part, cannot be transacted or encumbered. Theseinclude Medicare, Medicaid, and Social Security. When suchtransfers and public assistance are included, the poor and manyelderly could benefit, reducing the wealth disparity (Galbraith2016). To obtain net wealth, the value of the debts are subtractedsubtracted from the value of the assets. Galbraith stated thatfinancial wealth is the most unequal and thatmuch of the US population has no net financialwealth, and this is especially true for AfricanAmerican and immigrant households. Even forthe middle class, the value of financial assets maybe smaller than the value of a mortgage debt, heldagainst housing.In measuring global poverty, the World Bank Group (2016) andthe World Bank national accounts (2015) first created a measureof well-being that shows the differences in the quality of life acrossan entire population. To determine the standard for well-being,a survey was conducted. The survey determined the quality oflife based on the data range of consumption and income, whichis created by dividing the population into those with the highestand lowest of well-being. This is done in order to better comparethe data, which are the monetary values that are given to differentvariables that establish a point where income and consumption aredeemed insufficient to have good quality of life. When that point3 Albert Duncanis statistically defined, it is called the poverty line. There is alsoan established point that marks the minimum food consumptionthat can sustain life, which is called the extreme poverty line. Thatpoint will differ from one country to the next due to a change inthe circumstances of the population, but the process remains thesame. With that information, we can understand how many peoplelive below the poverty line. In addition, the World Bank uses theInternational Comparison Program in order to create a benchmarkto measure extreme poverty, which was at US $1.90 a day in the2011 purchasing power parity (PPP). This would mean that at US$1.90, a person would be able to purchase a sufficient quantity andquality of food to meet his or her daily caloric need. Most of theworld's extremely impoverished people live in Sub-Saharan Africaand Southern Asia. While over one in ten people live in extremepoverty globally, in Sub-Saharan Africa, that figure is four in ten,representing 389 million people, which is more poor people thanall other regions combined (World Bank Group 2016).The international measure of poverty is not applicable toadvanced countries, like the United States, due to their relativeprosperity. In fact, the measurement of inequality and poverty inAmerica is complex and multidimensional that, at times, can causethe official figures not to be an accurate reflection of the economicwell-being of households and individuals. Given that there arediverse ways of calculating income, there must be disparities in themeasurements of the income mean, median, and Gini coefficient.In the United States, poverty is income that is measured belowa certain minimum level, and in there, the US Census Bureauand the Department of Commerce prepare annual measuresof poverty. According to Frumkin (2000), “Poverty has anevolving dimension over time and involves raising the standardsperiodically to reflect improvement in living conditions and higheraspirations afforded by the advancements in technology" (p. 86).This situation normally raises the number of persons living in4

Question

-what are some of the dimensions of economic inequality and what is considered income? Capitalism and Inequalityis done by different entities using different measurements,resulting in a disparity in outcomes. In fact, commonly, wealthis narrowly defined as financial wealth-namely, cash on handand the money value of tangible and nonliquid assets. Even justthe market valuation of financial portfolios is commonly used todefine financial wealth. However, some may extend the definitionto include the value of income streams and insurance rights that,for the most part, cannot be transacted or encumbered. Theseinclude Medicare, Medicaid, and Social Security. When suchtransfers and public assistance are included, the poor and manyelderly could benefit, reducing the wealth disparity (Galbraith2016). To obtain net wealth, the value of the debts are subtractedsubtracted from the value of the assets. Galbraith stated thatfinancial wealth is the most unequal and thatmuch of the US population has no net financialwealth, and this is especially true for AfricanAmerican and immigrant households. Even forthe middle class, the value of financial assets maybe smaller than the value of a mortgage debt, heldagainst housing.In measuring global poverty, the World Bank Group (2016) andthe World Bank national accounts (2015) first created a measureof well-being that shows the differences in the quality of life acrossan entire population. To determine the standard for well-being,a survey was conducted. The survey determined the quality oflife based on the data range of consumption and income, whichis created by dividing the population into those with the highestand lowest of well-being. This is done in order to better comparethe data, which are the monetary values that are given to differentvariables that establish a point where income and consumption aredeemed insufficient to have good quality of life. When that point3 Albert Duncanis statistically defined, it is called the poverty line. There is alsoan established point that marks the minimum food consumptionthat can sustain life, which is called the extreme poverty line. Thatpoint will differ from one country to the next due to a change inthe circumstances of the population, but the process remains thesame. With that information, we can understand how many peoplelive below the poverty line. In addition, the World Bank uses theInternational Comparison Program in order to create a benchmarkto measure extreme poverty, which was at US $1.90 a day in the2011 purchasing power parity (PPP). This would mean that at US$1.90, a person would be able to purchase a sufficient quantity andquality of food to meet his or her daily caloric need. Most of theworld's extremely impoverished people live in Sub-Saharan Africaand Southern Asia. While over one in ten people live in extremepoverty globally, in Sub-Saharan Africa, that figure is four in ten,representing 389 million people, which is more poor people thanall other regions combined (World Bank Group 2016).The international measure of poverty is not applicable toadvanced countries, like the United States, due to their relativeprosperity. In fact, the measurement of inequality and poverty inAmerica is complex and multidimensional that, at times, can causethe official figures not to be an accurate reflection of the economicwell-being of households and individuals. Given that there arediverse ways of calculating income, there must be disparities in themeasurements of the income mean, median, and Gini coefficient.In the United States, poverty is income that is measured belowa certain minimum level, and in there, the US Census Bureauand the Department of Commerce prepare annual measuresof poverty. According to Frumkin (2000), “Poverty has anevolving dimension over time and involves raising the standardsperiodically to reflect improvement in living conditions and higheraspirations afforded by the advancements in technology&#34; (p. 86).This situation normally raises the number of persons living in4

Accepted Answer

Economic inequality is the distribution of economic resources with unequal manner to the country’s…