5.2 The problem of poverty

Question 1

What is absolute poverty?

Answer 1

Severe deprivation of basic human needs, including water, food, sanitation, health, shelter, education and information. Not only dependent on income but also access to services.

Question 2

What is relative poverty?

Answer 2

Occurs when someone is below a specified level of average income i.e below 60% of median income. Cannot afford the lifestyle that majority lead in that country.

Question 3

What are the causes of poverty?

Answer 3

Age
Unemployment
Low wages

Question 4

How does age cause poverty?

Answer 4

• Old age causes relative poverty largely because many old people rely on the state pension and lack a private pension
• Pensions (1980s) used to increase with average earnings. This meant that pensioners shared in the increase in national prosperity
• Pensions then moved away from being linked to average earnings
• Pensioners are now falling behind
• Unless it is supplemented with other income, the state pension is very much a poverty income

Question 5

How is unemployment a cause of poverty?

Answer 5

• Unemployment benefits are generally lower than the pay workers received before losing their jobs
• Therefore more unemployment, more relative poverty
• The coalition government in 2013 placed an upper limit on the amount of benefits that most people could claim
• This may have increased poverty further, but this could be offset by an increase in employment rates

Question 6

How are lower wages a cause of poverty?

Answer 6

• Low waged individuals are usually relatively poor

- In contrast, the unwaged e.g the homeless, are almost always absolutely poor

Question 7

What are the effects of poverty?

Answer 7

• Educational deprivation - lack of resources
• Health deprivation - higher risk to illness
• Communities - more likely to live in bad housing