For much of history, particularly around the year 1000, the global economy was relatively 'flat,' meaning the average income differences between countries were minor. This contrasts sharply with the modern era, where vast economic disparities exist between nations. This historical shift from a world of low inter-country inequality to one of high inter-country inequality is a central theme in economic history, often visualized in data like Figure 1.1.

The 'Flat World' and the Great Divergence: A Millennium of Global Inequality

- For the majority income has been stagnant for nearly 40 years while the top 1% has enjoyed huge increases and the top 5-20% have seen modest gains
- Wealth inequality is closely associated with income inequality 
- Education, race and gender play a role in income

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- This gap is impacted by: 
- Education
- Race 
- Generation wealth
- Income
- Meritocracy 

The Growing Gap Between the Poor and the Rich 

Barian, A. et. al. (2020). A Sociology Experiment. https://www.sociologyexperiment.com/ 

A Sociology Experiment

- plays a big role in income 
- access to education is not evenly distributed

Education [in relation to inequality]

- Black people face high rates of poverty, mass incarceration and unemployment
- White people [compared to Black people] are about to pass much more money to their children (spoken about in Generational Wealth node) because they have not been systematically oppressed (ex: housing policies)
- The whole process of cumulative advantages is invisible to many white people who benefit from it (spoken more about in Meritocracy node)

Race [in relation to inequality]

- The more wealth you have, the more opportunities there are to increase that wealth, pass it to your children, and protect against life events that might create financial hardships
- Rich families may also pay lots of money so their children can get into and go to elite colleges
- This generational wealth tends to positively impact white families the most

Generational Wealth [in relation to inequality]

Income [in relation to inequality]

- A system where personal responsibility and individual effort are the sole determinants of success
- Decades of research have found that this is not true and that some individuals have an easier path to financial success than others

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