lesson b : wealth

Question 1

what is wealth?

Answer 1

total stock of economic resources and possessions at a fixed point in time

Question 2

what is marketable wealth?

Answer 2

assets which can be disposed of or sold. adds on estimated cash value of pensions entitlements

Question 3

where do wealth stats come from?

Answer 3

1. the wealth and asset survey
2. rich list by sunday times
3. inland revenue - when someone dies, value of estate is calculated for tax
4. annual survey of hours and earnings - info on distribution of earnings

Question 4

give an example of a rich person.

Answer 4

james dyson - £23bn

Question 5

what are three positive consequences for being rich and wealthy?

Answer 5

1. financial stability
2. help + donate to community
3. make connections

Question 6

what are three negative consequences for being rich and wealthy?

Answer 6

1. stress
2. lots of money comes with responsibility
3. can introduce fame + platform, in limelight

Question 7

what are the problems with measuring wealth?

Answer 7

• defining what counts as wealth can be problematic
• calculating value of assets is difficult
• obtaining wealth data is difficult. many wealthy people conceal wealth to avoid taxation

Question 8

give three stats about trends in income distribution.

Answer 8

• britain is one of most unequal societies in europe in terms of income
• bottom 10% of population earn £8468, top 10% earn £79042
• top 1% average income of £259,917, top 0.1% had income of £941,582

Question 9

what did the birmingham commision report by rowlinson find?

Answer 9

• wealth inequalities occur in different ways. eg. some have higher incomes, some accumulate wealth rather than spend, some receive high levels of inheritance
• wealth affects physical and mental wellbeing, education and employment
• report suggests that gov should consider actions to redistribute wealth including fairer rewards for working and reforms to wealth taxation, council tax and capital gains tax