Equity vs Equality
- Ideally, economies try to achieve equality and/or equity.
- Whereas equality is when economic opportunities and resources are equally distributed, equity is when resources are fairly distributed.
- In economics equity refers to fairness, which can be different things for different people.
- Equity is a normative concept, meaning it has many different meanings for different people.
- The key difference is that equality doesn't always lead to equity, meaning that some people can be left in unfair situations if provided with the same opportunities as everyone else, due to differing needs.
Inequity and Inequality
- Similarly inequality and inequity both refer to similar yet distinct concepts.
- It is when there is a discrepancy between the opportunities and resources that different social groups and people have.
- For example a small portion of the population having much more money than the rest of the population is a case of inequality/inequity.