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Causeway
Track G · FrontierNode G1

Inequality, properly

Layer 2 · Working Model

The shape behind the number

~ 5 min
Step 01 · Inequality is a shape

Inequality is a shape, not a number. The Lorenz curve sketches the shape — how much of the income the bottom 50% earn, the top 10%, the top 1%.

The X-axis is cumulative population (poorest to richest). The Y-axis is cumulative income. The diagonal would be perfect equality: 10% of people earn 10% of income, 50% earn 50%, etc. Real distributions bow downward — the poorer slices earn less than their share of the population would imply.

Step 02 · Gini is the bow, compressed

The Gini coefficient is the area between the equality diagonal and the Lorenz curve, divided by the triangle. 0 = perfect equality; 1 = one person has everything. It's a useful single number — but it loses information about where the bow is.

Step 03 · Two countries, same Gini, different problems

Two countries can share a Gini and need opposite policies. One country's Gini might be driven by a missing bottom 50% (poverty alleviation is the lever). Another country's same Gini might be driven by a runaway top 1% (tax / antitrust is the lever). Same coefficient, different cures.

Step 04 · What to read instead

Read the curve, plus three numbers: top 1% share (where wealth concentrates), bottom 50% share (where deprivation lives), and the median / mean ratio (how skewed the distribution is). The Gini is a headline; these are the diagnosis.

In your life

Read the curve, not just the coefficient.

Every inequality argument is a fight about which slice of the curve matters. People arguing past each other usually disagree about the slice, not the math. Knowing the shape lets you identify what someone actually thinks the problem is.

Lorenz curve · the shape of income distribution
0%0%25%25%50%50%75%75%100%100%Cumulative % of population →Cumulative % of income →perfect equalityLorenz
The gold area between the lines, divided by the triangle, is the Gini coefficient.
Decile shares (% of total income)
1.5D13.0D24.0D35.0D46.5D58.0D610.0D712.5D815.5D934.0D10
D1 = bottom 10%, D10 = top 10%. Perfect equality would mean every bar at 10%. The top decile here gets 34.0%; the bottom half gets 20.0%.
Gini coefficient
0.439
0 = perfect equality. 1 = one person has it all.
Top 1% share
19%
Top 10% share
34.0%
Bottom 50% share
20.0%
Median / mean ratio
0.78
1.0 = symmetric. Lower = right-skewed (rich tail pulls mean up).
Inequality is a shape. Read the curve, not just the coefficient.