Provide an introduction explaining whether/why economists should care about inequality. Your answer could refer to the social welfare framework

Economists should indeed care about inequality for several reasons. Firstly, from a social welfare perspective, inequality can lead to inefficient allocation of resources. This is because those with less income or wealth often have a higher marginal utility of income, meaning they would benefit more from an additional dollar than someone who is already wealthy. Therefore, a more equal distribution of income could increase overall social welfare.

Secondly, high levels of inequality can lead to social and political instability. This can disrupt economic activities and create uncertainty, which can hinder economic growth.

Thirdly, inequality can also create barriers to economic mobility, making it harder for people from disadvantaged backgrounds to improve their economic status. This can lead to a waste of human capital, which is detrimental to economic growth and development.

Finally, economists may also care about inequality from a normative perspective. Many people have a sense of fairness and believe that extreme levels of inequality are inherently unjust. This view suggests that reducing inequality is a goal in and of itself, regardless of its impact on economic efficiency or growth.

In conclusion, economists should care about inequality due to its potential impact on social welfare, economic stability and growth, and notions of fairness.