After the Second World War, the global economy was characterised by massive growth. Not only the aristocracy of society, with regards to wealth, experienced progression, but even the middle and lower class households. Nevertheless, a period of recession in the 1970s halted this continuous growth. Whereas the income gap between rich and poor had been relatively stable, the recession landmarked a turning point in this trend. In the 20 to 25 years after the recession, leading up to the most recent global economic crisis, the gap between rich and poor kept on growing (Cingano, 2014). During these years of crisis, the economic growth stagnated; household incomes fell and unemployment rates rose. Nonetheless, even during this period, the lower and middle class incomes fell rapidly, whereas that of the higher class was affected less.
Although the aforementioned periods of time are characterised by different economic statuses, the term economic inequality is applicable to each, as it can be defined as ‘a situation in which inhabitants of a country or region have unequal opportunities to access wealth’.
A nation that pursues a communist regime is one that can be defined as being the pinnacle of economic equality.