How are poverty and inequality related to each other

Poverty and inequality moves hand in hand. Inequality, if we talk about income inequality, means difference in the income of households. Now, to see the relationship between poverty and inequality we can take the example of globalization. Globalization redistributed income in such a way that poorer became more poor and rich became richer and whenever this will happen, it will increase the income gaps of households and inequality will rise. Similarly, if poverty alone rises, it would also increase inequality. So we can say, poverty and inequality have a direct relationship.

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