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Economic Inequality

We observe, as another type of grand challenge, the increasing exacerbation of economic inequality. Although there are many different types of inequality – in terms of, for instance, race, class, gender, caste and geography (rural vs. urban) – a common outcome is the uneven distribution of income and wealth, that leads to further disparity and the continued marginalization of certain populations. This has been especially true during the pandemic, when front-line and essential workers have bore the brunt of the impact while investors and professionals have remained relatively insulated.Accountants can play an important role in addressing these inequalities through measures, audits and other control systems. For instance, the Equality Trust examines the social and financial cost of poverty and income inequality in the UK, finding that this exceeds the amount spent on national defense. Accountants can further highlight the benefits associated with reducing inequality.