By Steve Greenlaw, Ph. D., 2020. Brought up on the Declaration of Independence and the idea that all people are created equal, Americans have traditionally described themselves as living in a classless society. This classless society meant that individual effort and talent contributed to one’s place in society. The vast majority of Americans, it has been believed, are middle class. Looking at the data, however, it’s clear that economic inequality exists. But what is it? Economic inequality is the unequal distribution of income (earnings) or wealth (net worth or savings) in a society.