Wealth distribution in the context of "Middle-class"

The middle class refers to a class of people in the middle of a social hierarchy, often defined by occupation, income, education, or social status. The term has historically been associated with modernity, capitalism and political debate. Common definitions for the middle class range from the middle fifth of individuals on a nation's income ladder, to everyone but the poorest and wealthiest 20%. Theories like "Paradox of Interest" use decile groups and wealth distribution data to determine the size and wealth share of the middle class.

Terminology differs in the United States, where the term middle class describes people who in other countries would be described as working class. There has been significant global middle-class growth over time. In February 2009, The Economist asserted that over half of the world's population belonged to the middle class, as a result of rapid growth in emerging countries. It characterized the middle class as having a reasonable amount of discretionary income and defined it as beginning at the point where people have roughly a third of their income left for discretionary spending after paying for basic food and shelter.

In economics, the consumption distribution or consumption inequality is an alternative to the income distribution or wealth distribution for judging economic inequality, comparing levels of consumption or spending rather than income or wealth. This is an important measure of inequality as the basic utility of the wealth or income is the expenditure. People experience the inequality directly in consumption, rather than income or wealth. World Bank lists 118 countries based on consumption inequality compared to 68 countries based on income inequality.

Income inequality metrics or income distribution metrics are used by social scientists to measure the distribution of income and economic inequality among the participants in a particular economy, such as that of a specific country or of the world in general. While different theories may try to explain how income inequality comes about, income inequality metrics simply provide a system of measurement used to determine the dispersion of incomes. The concept of inequality is distinct from poverty and fairness.

Income distribution has always been a central concern of economic theory and economic policy. Classical economists such as Adam Smith, Thomas Malthus and David Ricardo were mainly concerned with factor income distribution, that is, the distribution of income between the main factors of production, land, labour and capital. It is often related to wealth distribution, although separate factors influence wealth inequality.

In economics, the Gini coefficient (/ˈdʒiːni/ JEE-nee), also known as the Gini index or Gini ratio, is a measure of statistical dispersion intended to represent the income inequality, the wealth inequality, or the consumption inequality within a nation or a social group. It was developed by Italian statistician and sociologist Corrado Gini.

The Gini coefficient measures the inequality among the values of a frequency distribution, such as income levels. A Gini coefficient of 0 reflects perfect equality, where all income or wealth values are the same. In contrast, a Gini coefficient of 1 (or 100%) reflects maximal inequality among values, where a single individual has all the income while all others have none.

Catholic social teaching (CST) is an area of Catholic doctrine which is concerned with human dignity and the common good in society. It addresses oppression, the role of the state, subsidiarity, social organization, social justice, and wealth distribution. CST's foundations are considered to have been laid by Pope Leo XIII's 1891 encyclical, Rerum novarum, of which interpretations gave rise to distributism (formulated by G. K. Chesterton), Catholic socialism (proposed by Andrew Collier) and Catholic communism, among others. Its roots can be traced to Catholic theologians such as Thomas Aquinas and Augustine of Hippo. CST is also derived from the Bible and cultures of the ancient Near East.

According to Pope John Paul II, the foundation of social justice "rests on the threefold cornerstones of human dignity, solidarity and subsidiarity". According to Pope Benedict XVI, its purpose "is simply to help purify reason and to contribute, here and now, to the acknowledgment and attainment of what is just ... [The church] has to play her part through rational argument and she has to reawaken the spiritual energy without which justice ... cannot prevail and prosper." Pope Francis, according to Cardinal Walter Kasper, made mercy "the key word of his pontificate... [while] Scholastic theology has neglected this topic and turned it into a mere subordinate theme of justice."

Thomas Piketty (French: [tɔmɑ pikɛti]; born 7 May 1971) is a French economist who is a professor of economics at the School for Advanced Studies in the Social Sciences, associate chair at the Paris School of Economics (PSE) and Centennial Professor of Economics in the International Inequalities Institute at the London School of Economics (LSE).

Piketty's work focuses on public economics, in particular income and wealth inequality. He is the author of the best-selling book Capital in the Twenty-First Century (2013), which emphasises the themes of his work on wealth concentrations and distribution over the past 250 years. The book argues that the rate of capital return in developed countries is persistently greater than the rate of economic growth, and that this will cause wealth inequality to increase in the future. Piketty proposes improving the education systems and considers diffusion of knowledge, diffusion of skills, diffusion of idea of productivity as the main mechanism that will lead to lower inequality. In 2019, his book Capital and Ideology was published, which focuses on income inequality in various societies in history. His 2022 A Brief History of Equality is a much shorter book about wealth redistribution intended for a target audience of citizens instead of economists.