4.2.1 Absolute And Relative Poverty ✅

Question 1

What is absolute poverty? What is its focus?

Answer 1

Absolute poverty is a measure that focuses on a fixed min standard of living basic for survival.

Meeting basic needs to live.

Question 2

What is relative poverty? What is its focus?

Answer 2

Measure that considers a personas income in comparison to overall standards of living within society.
Concerned with inequality and social exclusion.

Question 3

What does UN characterise absolute poverty? What is world banks definition?

Answer 3

A condition characterised by severe deprivation of basic needs.

Less than $1.90 a day.

Question 4

What is more common in developed countries? What is it classified as? How many in uk?

Answer 4

Relative.
Income less than 60% of median income.
1 in 5.

Question 5

What is the poverty line? What is the poverty trap?

Answer 5

Min standard of income necessary for adequate life in given country.
Effects low income = they are disincentivised to work longer hours due to tax and benefit systems.

Question 6

What are measures of absolute poverty?

Answer 6

Income approach = poverty line (spec income needed to be hit) + basic needs (assessing whether individuals can afford essentials)
Cost of basic needs = calculating cost of basic of essentials and comparing if individuals can afford.

Question 7

What are the measures of relative poverty?

Answer 7

Gini coefficient = higher values indicate income inequality (quantified income distribution).

Question 8

What factors cause changes in absolute and relative poverty?

Answer 8

• Economic.
• Social and demographic.
• Gov policies.
  -Global factors.

Question 9

How do economic factors effect poverty?

Answer 9

• Economic growth can income countries income + reduce relative poverty through providing more goods.
• Rising income inequality can increase relative poverty.

Question 10

How do social and demographic factors effect poverty?

Answer 10

• Population growth = can strain resources increase absolute poverty.
• Age + gender = vulnerable groups are more prone to poverty due to limited access to education + employment.

Question 11

How do gov policies effect poverty?

Answer 11

• Social safety nets = effective programs can recuse both poverties through providing support.
• Taxation/redistribution = progressive policies can reduce income inequality therefore relative poverty.

Question 12

What are global factors that effect poverty?

Answer 12

• Globalisation = changes in trade + investment + labour markets.
• Foreign aid = can reduce absolute poverty in developing countries.

Question 13

Explain why uk poverty has been growing?

Answer 13

• Inequality in wages = highest paid jobs having larger increases + public sector due to policy of austerity have had low wage increases.
• Wage of richest is 170x av worker v originally 60x.
• De-industrialisation = more lower paying service jobs.
• Growth in underemployment, zero hours, part + temp jobs resulting in lower wages.
• Decline of trade unions (more workers unable to bargain).
• State benefits have fallen. (Taxes more regressive).