Chapter 2 - Inequality, Poverty, and Opportunity

Abstract

A prime issue in capitalism is income inequality. This chapter argued that income inequality could be the “best” form of inequality as it can be adjusted and improved through policies, while other forms of inequality could be life-long. Inter-personal and intra-personal inequality is analyzed to examine the inevitability of inequality, but the more important issue is the improvability of inequality. Poverty could be a more relevant topic than inequality, and a conceptual difference is made between the stock and flow of poverty. While policies concentrated on the stock issue, it is the flow that would lighten the level of poverty. Indeed, ultimately, it is the generation of economic opportunity that could improve inequality and reduce poverty.