Causes of Social Inequality

Causes

The reasons for social inequality can vary, but are often broad and far reaching. Social inequalities exist between races, classes and countries. The results of such social inequalities can be seen around the globe in the history of all countries.

Social inequality is different from economic inequality, though the two are linked. Economic inequality refers to disparities in the distribution of economic assets and income. While economic inequality is caused by the unequal accumulation of wealth, social inequality exists because the lack of wealth in certain areas prohibits these people from obtaining the same housing, health care, etc. as the wealthy, in societies where access to these social goods depends on wealth.

Social inequality is linked to racial inequality, gender inequality, and wealth inequality. The way people behave socially, through racism and other forms of discrimination, tends to trickle down and affect the opportunities and wealth individuals can generate for themselves.

Thomas M. Shapiro presents a hypothetical example of this in his book, The Hidden Cost of Being African American, in which he tries to demonstrate the level of inequality on the "playing field for blacks and whites". One example he presents reports how a black family was denied a bank loan to use for housing, while a white family was approved. As being a homeowner is an important method in acquiring wealth, this situation created fewer opportunities for the black family to acquire wealth, producing social inequality.