In our introduction to economics in 1.1.1 Economics as a social science, we introduced the differences between equity and equality.
Definition
Equality
The even distribution of resources, opportunities, and outcomes among individuals or groups within a society
Definition
Equity
Refers to the concept where there is a fair resource distribution.
- In economics, when talking about equity or equality, we usually talk about whether there is an equal or equitable:
- Distribution of income.
- Distribution of wealth.
- In a poverty context, the terms 'equity' and 'equality' tend to be used synonymously, even though their meanings are different. This is because:
- It is a widespread belief that income and wealth are too concentrated in a few members of society.
- Therefore, a more equitable (fair) distribution should be more equal.
- Therefore, there is an important relationship between equity and equality:
To be more equitable, economies should be more equal.
