Difference between Poverty and Inequality

Inequality and poverty are inseparably connected. That is because destitution is not an individual quality. For example, hair shading or tallness; however, there is a relationship between needy individuals and the general public in which they live.

Poverty

A condition in which a man or group does not have the monetary assets and essentials to appreciate the standard of life is called poverty that incorporates social, financial, and political fundamentals.

According to the United Nations vitally, poverty is the failure of getting decisions and opportunities, an infringement of human pride. It implies not sufficiently having to nourish and dress a family, not having a school, or not having admittance to credit.

According to the World Bank, Poverty is declared hardship in prosperity and contains numerous measurements. Poverty incorporates low levels of well being and instruction, less right to use freshwater and cleanliness, inadequate physical security, absence of voice, and lacking limit and chance to improve one’s life.

Inequality

It is the state of being unequal; absence of correspondence; uniqueness: imbalance of size. Economic inequality alludes to how financial measurements are appropriated among people in a gathering and nations. A few studies have underlined inequality as a developing social problem. Too much disparity can be critical because income disparity and concentration of wealth can impede long haul growth.

However, in 2011, International Monetary Fund business analysts demonstrated that more remarkable wage uniformity—less imbalance—expanded the length of time of nations’ financial development spells more than unhindered commerce, low government defilement, remote venture, or low outside debt. A broadly utilized one is the Gini coefficient, yet there are additionally numerous different techniques.

Poverty VS Inequality

According to many people, poverty and inequality show the same meaning, but a difference exists between poverty and inequality, which is briefly explained below:

• Individuals:

As poverty is the estimate of individuals. We can say that a person is living in poverty.

Inequality is an estimate of a whole society and a relative term as we can’t say that person is living in inequality.

• Affect:

Poverty gets effected by inequality, but poverty is explained and study on its own. It describes a vast range of methods where inequality exists.

Inequality is not affected by poverty, and we explain it by considering poverty. It only tells the underlying issues.

• Nuances:

Poverty can be said as a nuanced term as it explains the people who are poor, always poor, or sometimes poor.

Inequality can be defined as fixed-term as it explains the economic disparity among people.

• Effect of policies:

Poverty can be linearly reduced with the construction of specific policies.

In the case of inequality, it is difficult to make policies to keep check and balance as it has non-linear construction.

• Vulnerability:

Poverty can be measured as an expression of vulnerability.  We can explain the poverty as the person is unable to pay a bill day to day basis, but we can that he is only getting by.

Inequality can’t be calculated in terms of vulnerability.

• Factors:

The factors which are responsible for poverty are:

• Unemployment
• Low wages
• Larger/ extended family
• Disability
• Living in a remote community
• Illiteracy
• Lack of skills
• Poor governance
• Poor infrastructure
• Marginalization
• Malnutrition
• Climate change/ disaster
• Conflict/ warfare

Following are the factors which are responsible for inequality in the society:

• Growth in technology
• Gender
• Globalization
• Inheritance; rich or poor
• Difference in talent and skills
• Policies or taxes
• National economy

• Consequences:

Poverty can lead to the irresistible consequences which are mentioned below:

• Hunger
• Death
• Depression
• Negative thoughts
• Immigration to other areas
• Extremism
• Issues of health
• Increased crime rate
• Terrorism
• No access to education, especially higher education

Inequality leads to significant consequences:

• Class conflict
• Exploitation
• Instability
• Poor health
• Political domination
• Promote monopolies
• Degrade morality
• Suppression of talents
• Capital formation

Conclusion

From the above discussion, we come to know that poverty is a vast concept, whereas inequality just explains the underlying issues in society. Poverty can be described by not having many resources or difficulty for a person to meet both ends. Inequality can be viewed as unequal distribution of resources and rights in society. Suppose, in a community, a person does not earn to live a prosperous life and blame others for being poor; it would be unfair. If one person makes thousands or even lac in a month or the other person is having difficulty in fulfilling the basic needs does not mean that the second person is not able to make more money. It could be an unequal distribution of money. It’s in the hands of a person how he utilizes the resources or how he uses his skills to get a handsome salary or payment. It is said that it is not a person’s fault to born poor, but it definitely his failure to die poor. In life, a person has offered thousands of chances by Allah to make his living better, so it depends on the person if he struggles or works hard to live a standard life or not. When he faces failure in life, he should not be disappointed rather than to prove himself by doing hard work.

Somehow an inequality leads to poverty, as it is observed that countries having a low level of inequality in terms of social, economic, religious factors, have a low level of poverty. Do you agree with us?