You've seen that the global distribution of income is unequal. Why do you think it is unequal? The global distribution of income is unequal because there is an unequal distribution of

- Human capital and physical capital

Explanation:

There are various factors that are responsible for the unequal distribution of income globally. These factors may include tax evasion, inflation, unemployment, etc.

As per the question, the major reason for this unequal distribution is due to improper allocation of 'human capital and physical capital' across the population which leads to establishing an imbalance in the economy as some people possess excessive wealth to show off while the others born, live, and die in poverty for generations. Thus, improper 'human and physical capital' distribution is the root cause of the increasing gulf between the rich and poor.

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