Income And Wealth Flashcards
(7 cards)
Sources of wealth
Inheritance - assets including property can be accumulated over generations with each successive her ration being more wealth than the preeciding one
Savings - wealth can be accumulated through saving though this is easier for high income earners and the elderly
Entrepreneurship- an increase in those who are self employed through taking risk and successfully building up a business usually have more wealth
Chance - instant millionaires lottery
Wealth inequality
Inheritance - in the UK large stocks of wealth including estates and titles are passed down from one generation of already wealth families to the next
Marriage - wealthy people tend to marry other wealthy people reinforcing concentration of wealth among very few
Income inequality - high income earners are better able to save and earn interest and access higher interest accounts
those who have a prosperity to save a higher percentage of their income will build up more wealth than those who have a smaller percentage
Chance
North unemployment
the skills and qualifications of the labour force have not been appropriate for changes in industrial structure leading to structural unemployment
Trickle down economics
Some supply side economists argue that higher spending by the rich with stimulate the economy for the benefit of all includin the relatively poor
They argue that cutting coop tax and income rates will create incentives for entrepreneurs to expand and thereby create employment for the poor
Tax credits
Tax credits consist of benefits paid through the tax system as reductions in the amount of tax pied rather than receiving cash benefits
Creates incentives to reduce child poverty
Free market economists min wage
Distorts the forces of supply and demand will have undesirable consequences since firms costs of production rose
Free market economists min wage
Distorts the forces of supply and demand will have undesirable consequences since firms costs of production rose
