The distribution of poverty, wealth and income between different social groups Flashcards
(23 cards)
what does wealth refer to?
wealth refers to property in the form of assets that can be sold and turned into cash for the owner’s benefit, including housing, land, factories, bank accounts, saving, shares in companies, private pension funds, and personal possessions
how is wealth typically measured in Britain?
wealth is measured through the Office for National Statistics Wealth and Assets Survey, which assesses four components: property, financial assets, physical wealth (personal and household goods), and private pension wealth
define the term “marketable wealth”
assets that can be sold for cash (cars, houses, shares)
define the term “non-marketable wealth”
wealth that cannot be cashed in, like pension rights
define the term “productive property”
wealth that generates unearned income (rental properties)
define the term “consumption poverty”
wealth for personal use that does not produce income (cars, owned homes)
how is income defined?
income refers to the flow of money obtained from work, welfare benefits, or investments in productive property. it is characterised into disposable income, discretionary income, earned income, and unearned income
define the term “disposable income”
income left after paying taxes
define the term “discretionary income”
income left after taxes and necessary expenses (mortgages, food)
define the term “earned income”
income from paid employment (wages and salaries)
define the term “unearned income”
income from investments or properties (rent, dividends)
how is wealth and income distributed in contemporary Britain?
wealth and income are very equally distributed, contributing to widespread relative poverty and disparities in life chances among different social groups
what impact does wealth inequality have on life chances?
inequality affects opportunities for accumulating wealth and achieving high incomes; richer groups have better access to inheritances and financial assistance than poorer groups, perpetuating poverty
who are the rich?
- traditional aristocracy: major landowners with inherited wealth
- corporate rich: owners of industries and businesses
- celebrities: stars from entertainment and sports who often possess significant wealth
what role does inherited wealth play in the distribution of wealth?
about 1/3 of all wealth in the UK is inherited, often resulting in individuals receiving unearned income without contributing to it through employment
what factores contribute to poverty among ethnic minorities?
-larger family sizes
-low-paid work
-racism in employment
-educational underachievement
all contribute to higher poverty rates among certain ethnic groups, such as, Pakistanis, Bangladeshis, and Caribbeans
what are the contributing factors to child poverty in the UK?
-lone parenthood: many children live with single parents who may struggle to find full-time work
-high childcare costs: limited access to affordable childcare prevents parents from working full-time
-disability: children with disabled parents are at higher risk of poverty
-insufficient financial support: inadequate benefits and support systems exacerbate child poverty
what is meant by the term “feminisation of poverty”?
the term indicates that while both genders experience poverty similarly in percentage terms, women often face unique challenges that may increase their vulnerability to poverty, such as lower pay, lack of access to career advancement, and caregiving responsibilities
how do gender disparities influence poverty levels?
women are more likely to work in lower-paid jobs and may take career breaks for childcare, impacting long-term earning potential
what factors contribute to higher poverty levels among disabled individuals?
- employability issues: physical or mental impairments make finding and maintaining employment challenging
- unemployment rates: disables people are much more likely to be unemployed compared to non-disables individuals
- low wages: disables individuals who do find work are often in lower-paid roles
- inadequate welfare support: benefits for people with disabilities are insufficient compared to those for children or pensioners
functionalist explanations for explaining wealth and income inequality
functionalists argue that inequalities are necessary for motivating people to fill important societal roles, poverty has functions like motivating low-paid job acceptance
weberian explanations for explaining wealth and income inequality
focus on market situations and skills, suggesting differences in income arise from varying skills and abilities in the job market
marxist explanations for explaining wealth and income inequality
contend that wealth inequality is rooted in the private ownership of production resources, leading to class inequality and the exploitation of low-paid workers
