This thoroughly revised second edition explores the growing sense of economic dissatisfaction, political polarization and social conflict across the world and the role that economic inequality is playing in this great dismantling. It incorporates research on how these imbalances affect societal systems in ways that not only contribute to less equitable outcomes, but also decrease economic growth and increase geopolitical unrest. Todd A. Knoop examines how capitalism’s ability to sustain economic growth is its essential superpower, while its inability to share greater access to this achievement is its downfall. The book includes new chapters on the impact of COVID-19 on economic inequality, the unique economics of artificial intelligence and new data on how economic inequality is changing across countries. Knoop presents a fresh look at a wide range of policy options that governments can use to reduce economic disparities and looks ahead to future trends in inequality, recognizing that inequality is not inevitable and that ultimately it is a political choice. Understanding Economic Inequality is a crucial resource for scholars and students of political economy, economics and finance, sociology, and politics. It is also a beneficial read for policymakers and practitioners in dealing with the preeminent challenge of our time.