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As time passes, outside of inflation, the buying power of an individual changes relative to their peers wealth.

How can I measure the effect wealth inequality has relative to one's savings?

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  • $\begingroup$ I want to tag this gini-coefficient but I don't have sufficient rep. Please edit as you see fit. $\endgroup$ – technology_is_overrated Dec 23 '16 at 4:07
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Economists generally think of three similar, but distinct, metrics of economic disparity: inequality of income, consumption and wealth. Income inequality is the most commonly cited measure, consumption inequality, though harder to measure, provides a better proxy of social welfare. Wealth is also an important metric since it can be inherited, unlike income. Most people would use the Gini coefficients to measure all three.

This article might be of use.

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