Final answer:
Inequality affects society by exacerbating public health issues, hindering economic growth, undermining democratic principles, fracturing social cohesion, and destabilizing household security. It widens the gap between different income groups, affects political influence and economic stability, and can lead to both immediate and far-reaching negative consequences.
Step-by-step explanation:
Inequality has a pervasive impact on various aspects of society, including public health, the economy, democracy, social cohesion, and household/family security. When inequality rises, low-income individuals may experience reduced access to healthcare, leading to public health challenges. Economic inequality can stifle growth patterns and consumer spending, potentially leading to a less robust economy, while in democracies, large disparities in wealth can translate into unequal political influence, undermining the principles of democracy. Social cohesion can suffer as inequality creates divisions within society, causing mistrust and fragmentation. Lastly, for household and family security, greater inequality means that lower-income families face more economic instability and fewer opportunities for socio-economic mobility.
Regarding the self-check questions, when incomes rise for both low-income and high-income workers but more so for the latter, the gap between them widens, potentially increasing inequality. Conversely, if incomes fall more for high-income earners, this could lead to a reduction in the income gap, theoretically reducing inequality.
The main reasons economists cite for the increase in inequality include changes in household structures and the impacts of new technologies on wages, while policies to reduce inequality range from redistribution to improved education. Lastly, an imbalance towards equality could diminish work incentives, but a moderate push could enhance overall economic output and support for market forces.
If equality is not promoted, the long-term consequences include entrenched poverty, reduced social mobility, and weaker economic performance. The short-term consequences may be less visible but include increased social tensions, recourse to public assistance, and immediate health disparities.