103 Income Inequality

Question 1

Austerity Policy

Answer 1

A policy that is focussed towards cost-saving strategies.

Question 2

Income inequality

Answer 2

Income inequality is the extent of the disparity between high and low-income earners. It is the unequal distribution of wages, salaries, and financial earnings.

We can define income inequality very basically as the differences in income between high-income earners and low-income earners.

Question 3

What is the difference between income inequality and wealth inequality?

Answer 3

Income inequality: unequal distribution of wages, salaries, and financial earnings more generally

Wealth inequality: unequal distribution of assets (such as houses, estates, investments).

Question 4

How can we explain why income inequality continues to grow at an accelerated rate?

Answer 4

Significant policy shifts have contributed to rising income inequality in NZ. These include tax cuts, benefits cuts, and employment laws.

Neoliberal policies are used and implemented to drive these gaps because neoliberalism is fine with inequality.

Question 5

What is the relationship between income inequality and social + health problems?

Answer 5

The higher the levels of income inequality there are in a country - the more social and health problems they have.