2.1Identify the reason for unequal distribution of income from the information above? (1)

The reason for the unequal distribution of income is the disparate growth in earnings between the majority (whose real wages and median incomes have shrunk) and the top earners (whose earnings have grown significantly), coupled with the unequal distribution of capital income (from shares and capital gains) which disproportionately benefits the wealthy.

• Disparate growth in earnings and capital income between the majority and the wealthy.