Poverty And Inequality Flashcards Preview

Economics Unit 4 > Poverty And Inequality > Flashcards

Flashcards in Poverty And Inequality Deck (13):
1

Reducing inequality

- Through the use of tax
- Increased opportunity for women
- Education

2

Through use of tax (analysis)

- More progress tax system
- Put the money gained from those in the higher tax bracket in areas of the economy where inequality is present

-Reduce indirect tax
- Take less out of the poor's discretionary income
- Involves reducing VAT, which should increase incentives to spend
- More spending stimulates the economy and allows the government to reduce inequality (seen with the laffer curve)

3

Through the use of tax (Eval)

- Increasing tax for those in the higher tax bracket could lead to brain drain
- Business and/or people may relocate where tax is less, therefore leading to a greater loss of tax for the government
- loss of tax could have been used for other methods

4

Increased opportunity for women (analysis)

- Increased opportunity within the workforce as well as out

- Less employed women in the UK
- they would rather take low paid jobs e.g. Cleaning allowing them to be worse off
- This is further helped by the fact that these jobs are seen as 'muck jobs' which no one is willing to do

- schemes to help the women, especially those in high position jobs with childcare services or training them
- Allows women to stay in work or reduced their working status their working status from full-time to part-time

- Gives more incentive to women, to join the workforce, especially fields where it is male dominated without worrying about sacrificing their personal life
- e.g. Engineering, building/construction, businesses

- Allows less of a divide through training

- Government also gains from more tax revenue and an increase in economic growth

5

Increased opportunity for women (Eval)

- Not all women want to work their way up the work ladder
- They choose to work in the female dominated industry e.g. Sectary
- Enjoy being a housewife

6

Increased opportunity for women (examples)

- Statistics show for April to June 2015, 1.01 men unemployed. 838,000 women unemployed

- Employment in the UK is 78.2% for men, 68.7% for women aged from 16 to 64 years (favour in men)

7

Education (analysis)

- 7% private schools, 93% state schools, investing more money creates more opportunities
- Young people can learn things beyond what they are taught or aid them in their learning - wider spectrum available
- Allows them to compete with other schools they wouldn't have been able to previously
- Increaed spending in colleges, training schools, apprenticeship & BTEC courses, leads to a decrease in inequality
- those who do not enjoy the ridged structure of school and post 16 eduction can do hands on work or a course (BTEC) - achieve a qualification
- Allows for those in a variety of backgrounds to do the things they want in life
- Leads to a higher percentage of young people in employment in the long run

8

Education (EVAL)

- May not be effective
- between April to June 2014 to April to June 2015 people on government supported training and employment fell by 23,000 to reach 104,000

- Instead of reducing inequality it increases it

9

Indirect tax

- The charges on spending
- Examples: VAT (Ad valorem), Duty (specific)

10

Regressive tax

- Hits the poor harder, have low incomes e.g. VAT
- But not charged on various goods e.g. Children's clothes which reduces the impact

11

Progressive Tax

- Rate of tax increase with the level of income = income tax

12

Laffer Curve

- increase in tax, decrease in incentives
- decrease in tax, increase in incentives

13

Lorenz curve

- The greater the line swings down the less equality
- Aim to be as close as possible to the line of absolute equality
- Can be used before tax and benefits after in order to compare
- Can be used for wealth distribution (stocks, culmination)