Abstract
This paper concentrates on comparing the policies implemented in the United States of America and European Union after the 1960s which led to the inequality tends among the respective populations. Data comparison between the top 1% and bottom 50% households show significant increase in inequality in US whereas Europe has been successful in stabilizing these trends. Various factors such as role of European Union, role of Labour unions, Education, tax, and transfer policies are thoroughly explained with relevant data from various sources.
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