poverty Flashcards
(9 cards)
Lorenz curve
used to represenet the distriubution of income geographically
the further the lorenz curve is away from the diagonal increase inequality
gini coefficient is the measure of inequality
0=completely equality
1=competely inequality
APP:uk gini coefficient uk=0.35
southa frica=0.63
slovenia=0.24
absolute poverty
conditions where household income is insufficient to afford basic necessities(food,shelter)
relative poverty
households receive 60% income less than average median income
causes of poverty-
high up
lack of job/educational opportunities
poor health /healthcare
gov corruption
benefits trap
RECESSION
BORN INTO POVERTY
gov polciies to tackle poverty
benefits-tax revenue used to pay benefits to thos who need them
eval:costly to governmetn-adds to debt,c can cause poverty trap– government should reduce reliance on “nanny state”-Goverment is too overprotective
raising nmw=raise income for the poor in soiciety-reducing pvoerty–acts an incentive to work and increase living standards
eval: demand for labour contracts and supply extends–excess supply–increase in real wage unemployment–worsens gap
education–increase skills–increase mrp–increase dl increase qty
consequences of income inequality
high elvels of debt–low income borrow –cant afford to pay–icnrease debt for banks–increase financial crisis
social costs–income inequality–resorts to crime–increase–increase g on police–opportunity ocst
costs to gov–policies to deal with income inequality–raise taxes–regrssive
uk relative poverty
£14,000 less
factors which influence the distriubtion of income and wealth
age–works have more experience-increase mrp–increase income–increase time to work–increase savings–increase wealth
wage differentials-wage discrimination
geography–deindustralsiation–structural up –hysteriss –lack of good quality infrastructure(2018,average income in north regions=£17,000 in london=£24,000
education-more qualifications==greater income potential
