The distribution of income in a population is a measure of the concentration of income. That is, of the total population, what percentage receive immense incomes relative to what percentage receive little or no income, and the relative measures of those levels of income.
In the US, terms like "upper (income) class", "middle class", and "lower class" have identified three distinct levels of income. The income levels associated with each, and the relative sizes of each class changes continuously. In general, lower class refers to too little income for planning and saving; income for a month covers not much more, if all, the expenses for the month. Middle class income might allow savings of a few months income to several years' worth. Upper class might have savings in excess of several years of income, or much more.
Different political agendas see the classes as having different roles in the social structure. In one view, the upper class provides the capital for ventures and infrastructure, the middle class the skilled efforts and mercantile workforce that actually generate most of the wealth of the nation. The lower class provides relatively less wealth creation, but often much of the labor and, prior to modern agribusiness, much of the food of the nation.
Societies with very large lower classes and little mobility (the access people have to move to a higher income class) tend to be less stable, more prone to civil unrest. In the US, military service and public education, plus a reliance on character and aptitude over social status in hiring practices, has been markedly accessible, in the past.
Another social theory contends that the existence of the upper class is the reason for poverty, and removal of wealth from the upper and middle classes will enrich the lower class to place the entire society in the middle class.
Measuring and citing income distribution can be used in serious study of social dynamics, in evaluating and planning economic changes, trends, and impacts of changes, and in political rhetoric.
Sharply divided income distributions favor the few wealthy and powerful individuals, as they have few competitors and a large impact of the lower classes. Broadly distributed incomes, particularly large middle classes and modest lower class people, tend to generate more wealth for all, including the lower classes.
The importance of national income in the economy is absolutely huge. This determines whether or not there is money that can be spent.
the distribution of income
Personal income distribution and functional income distribution :)
1. it help to know economic problem of under developed country 2. it help to measure inflationary 3. national income accounting throw the light on distribution income in economy 4. it help to measure the welfare of the citizens or country by EMMANUEL GASPER MZUMBE UNIVERSITY
it is very important to calculate national income so as to see whether the country in terms of its economy is progressing and to also see that the calculation of national income is carried out efficiently and precisely
The importance of national income in the economy is absolutely huge. This determines whether or not there is money that can be spent.
the distribution of income
it means distribution of income is how a nation's total economy is distributed amongst its population. Classical economists are more concerned about factor income distribution,that is the distribution of income between the factors of production,labor land and capital. Distribution of income is measured by Lorenz curve and Gini co
Personal income distribution and functional income distribution :)
1. it help to know economic problem of under developed country 2. it help to measure inflationary 3. national income accounting throw the light on distribution income in economy 4. it help to measure the welfare of the citizens or country by EMMANUEL GASPER MZUMBE UNIVERSITY
it is very important to calculate national income so as to see whether the country in terms of its economy is progressing and to also see that the calculation of national income is carried out efficiently and precisely
K. R. Ranadive has written: 'Income distribution' -- subject(s): Economics, Income distribution 'The political economy of poverty' -- subject(s): Economic policy, Poverty
National income figures helps governmental institutions understand the state of the economy. If the national average for income has increased, then businesses are growing.
Unequal distribution of income meant that most Americans could not participate fully in the economic advances of the 1920s. Many people did not have the money to purchase the flod of goods that factories produced.
This is an explanation for how wealth or income distribution will be in the future. Some might have the economic hypothesis that the economy will continue to grow.
ensuring an equal distribution of income to all citizens
Because of the distribution of the income Economy A 2 people income of person 1 = 1000 income of person 2 = 0 Per capita income is 500 Economy B 2 people income of person 1 = 500 income of person 2 = 500 Per capita income is 500