This article, by Ross Gittins, clearly states that it is no longer valid to say that the poor are getting poorer. The statement is now, that the rich are getting richer, but so are the poor, only the gap between them is widening at a faster rate.

The distribution of income and wealth is a significant factor in determining the level of inequality in an economy and it is this inequality that has substantial economic and social consequences. Thus, in attempt to curb the severity of these consequences, the government endeavours to apply effective policies so as to create an even distribution of income.

An important distinction that must be made in this issue is that of the disparity between income and wealth. Wealth is the holding of assets, financial and physical that can generate income, that is, the flow of funds, goods or services. Thus, one may...