# The Gini index **The Gini index** is like a score that shows how **equally or unequally** money is distributed among people or households in a country. # Calculate - Imagine a line representing **perfect equality**, where everyone has the same amount of money. - Then you compare that line to the actual distribution of money using something called a **Lorenz curve**. - The **Gini index** measures the difference between the two lines. - A **Gini index of 0** means **perfect equality**, where everyone has the same amount of money. - A **Gini index of 100** means **perfect inequality**, where one person has all the money and everyone else has none. **The Gini index** is important because it helps us understand how **fair or unfair** a country's economy is. A **lower Gini index** indicates a **fairer distribution of wealth**, while a **higher index** indicates **more inequality**. **The Gini index** is a way to see how fairly money is distributed among people in a country. A **lower value** means **more fairness**, while a **higher value** means **more inequality**.

Expand