
1. Introduction:
There is a big problem of income inequality amongst people in the population today. Some people have much money whereas others have less. i.e. the rich and the poor. With the rich getting more richer whereas the poor are getting more poorer. There’s a big gap between these two groups. Here is why we ask ourselves that why is it so? What could have caused this big difference in the income levels today?

2. What Is Income Inequality?
Income inequality is when there’s uneven distribution of income amongst the population. Its that difference in income levels among the population. Its the state of some having much whereas others don’t have/have less.
3. 8 Causes Of Income Inequality Today.
There are several causes of income inequality today, lets look at them:
1. Level Of Education:
The difference in the level of education causes income inequality. People who have attained a high level of education tend to get high paying jobs than people with low level of education. Now days you need to have at least from diploma level to bachelors to PhD to get a fair paying job. So those with high education levels qualify for those big jobs with a high pay while those without qualify for jobs with low pay.

2. Age Factor.
Money tends to rotate within the youths age bracket not the old-why? This is because the youth are strong enough to make money while the old are weak to be able to work. This makes the youth have money while the old without. This brings about income inequality.
3. Differences In Backgrounds.
Some people have wealthy backgrounds whereas others have poor backgrounds. People who come from a stable financial background have money and live in high standards. Those from a poor background lack money and are struggling to make it in life. This is why there is income inequality in society.
4. The Rate Of Unemployment.
The high rate of unemployment today have led to income inequality. This is where labour is able to work but there is no available job. Someone without a job doesn’t have any source of income. The one with a job earns and has some income. This means the one without a job has no income while the one with a job has income.
5. Uncertainties.
Uncertainties are things which happen all of a sudden e.g. deaths, prolonged illness like cancer, being sucked from work, accidents etc. These happenings are things we cannot avoid but they also lead to inequality incomes. Prolonged sickness could drain all the families’ finances in treatment of their patient to get better. This lowers the income in this such family and makes it poor. But a family without health problems continues progressing in growth because their income is used to build, pay fees, buy food, farm etc.
6. High Inflation Rates.
Inflation is the rapid rise in the prices of goods and services in minutes, hours and days. This makes the people’s cost of living so high. Inflation leads to income imbalance because the rich can afford these goods even if the prices rise each day. On the other hand the poor cannot afford these goods but will work very hard to afford them especially if they are a necessity. This leaves them with less or no income.
7. Government Policy Of Taxation.
People are subjected to high taxes regardless of their earning and standard of living. Even the extremely poor people are subjected to these heavy taxes. This leads to poor standards of living. This is because the poor who cannot even afford the day-to-day basic needs are taxed. e.g. Tax is imposed on all goods and services whether run by the poor or rich. This leads to income inequalities.
8. Government Programs Of Wealth Creation.
Some government programs also cause income inequality today. Wealth creation programs like (PDM)-Parish Development Model etc. lead to income imbalance. Some part of the population get this money and others don’t get which leads to inequality.