Economic Inequality Flashcards
(16 cards)
what is social inequality
unequal distribution of resources in society. people different amount of resources, different opportunity to acquire
what is income
self employment income, pensions, benefits, investment income
what is wealth
value of all physical belongings and financial assets
tax and its link to economic inequality
lower level of inequality as tax is progressive
measures of inequality (economic)
90:10 ratio - income 90th percentile / 10th percentile
what is the gini coefficient
A / (A+B)
wealth = 0.62
income = 0.34
the top 0.01%
5,360 adults
men ages 45 to 65
why has economic inequality increased
skill based technical change, low return on unskilled, globalisation, manual work moved abroad, decrease top taxes, lower redistribution
what did Thomas Piketty suggest about economic inequality
argues wealth inequality will continue if not stopped by policy
inheriting wealth
progressive taxation - taxes based on earnings
what is the great Gatsby curve
income inequality and social mobility
increase inequality and lower mobility correlated
what is the spirit level - great Gatsby curve
higher inequality, negative effects social outcomes
politics to reduce economic inequality
higher top taxes, wealth tax, stricter inheritance, higher minimum wage
what does Mike Brewer suggests about unequal societies
top CEO’s earn annual wage of average worker in 2 1/2 days
less healthy, less trusting, more crime and violence
Mike Brewer the Lorenz curve
slowly increases then speed up to 100
Mike Brewer the Gini coefficient
how close the Lorenz curve is to being a straight line - 0 is equal
Wilkinson and Pickett about economic inequality
higher obesity, violence and mental health problems when higher inequality
