Wealth Distribution, or the distribution of wealth, is a way to quantify the amount of wealth held by different groups of society. The measurement of Wealth Distribution seeks to highlight how money, and by extension power, influence, and prestige, is unevenly distributed among different “sects” of society.
Over time, without any government intervention, wealth typically condenses in the already wealth and powerful members of society. This phenomenon, known as “Wealth concentration” is perpetuated when rich member of society has the purchasing power to invest in newly created sources and wealth structures, in exchange for being able to reap the rewards of such sources. Wealth concentration typically occurs in a free unregulated market within a nation, which could lead to wealth entrenchment, where money is used to shield a wealthy family from losing their investments.
Governments that are social or societal in ideology / agenda typically seek to decrease this increasing wealth distribution by enacting “social measures” to counteract the influence of wealth concentration. Taxation, Social Security, Nationalization of corporations, and forced redistribution (like collectivization) are all measures governments have employed to cut down on wealth distribution. Of course, such an action comes at a cost to the freeness of a nation’s market, and the freedom for citizens to control their own financial sources and expenditures.