2) The distribution of wealth. Flashcards
Types of wealth.
-Marketable wealth: assets that can be bought and sold.
-Non-marketable wealth: pensions or savings.
-Productive property: rental properties.
-Consumption property: you own consumer goods eg cars.
Types of income.
The money earned from work, or unearned income from rental properties.
Disposable income: all money eft after tax.
Discretionary income: all money left after tax, rent, bills, food, travel.
Attempts to redistribute wealth.
-Inheritance tax.
-Capital gains tax: reduce profit from rental properties.
-Income tax: on earned and unearned income. Increases with wage.
Why attempts to redistribute wealth fail.
-Banks in other countries+ loopholes in law.
-Tax is capped and not very high for the wealthy.
-Handing down valuables ie paintings instead of money.
-Tax evasion.
-Government needs poor people to do dirty+ dangerous work (funct, Marx: fake caring face of capitalism.)
Ethnic minorities and poverty.
Bangladeshi, Pakistani and Chinese people are more likely to be in poverty than white people.
-Pay+ family types: in a lot of families, only the man works. Some groups are more likely to be single parents.
-Unemployment: higher among Pakistanis, Bangladeshis and Black people.
-Inequality in education: due to ethnocentric curriculums, subconscious bias from teachers, bullying.
-Racism in employment: prejudice from employers: favour white British names over EMG. Workplace harassment.
Age and poverty- old and pensioners.
-They may not be hired because they are seen as weak and not being able to contribute to the business.
-The retired may not want to work any more- they may be weakened or have disabilities, which could limit job opportunities.
Age and poverty- children.
1/3 of all children live in poverty, higher than most European countries. Poverty is higher in EMG and asylum seeker children. They are more likely to live in poverty as adults (cycle of deprivation.)
-Single parenthood.
-Unemployed/ low-payed parents.
-Disability.
-The cost of childcare.
Disability and poverty.
-Inaccessibility: not every workplace has accommodations for disabled people eg wheelchair ramps, providing a low-distraction workplace.
-Low pay: accessible workplaces may be low-pay, impacting pensions.
-Employment discrimination: despite it being illegal- worry about making accommodations.
-Inadequate welfare: not enough, especially if they need extra funds to manage their condition. Benefits have not increased like children+elderly.
Gender and poverty.
-Part-time and low payed work: combine work and childcare (dual burden.)
-Homeworkers: take care of children instead of working.
-More likely to be single parents.
-Longer life expectancy: higher poverty at an old age.
-Sacrifice own living standards for family: will go without food, new clothes and holidays for children.
Soft pillow theory.
The nuclear family maintains capitalist structure. Women are the primary house makers so that men can go to work- women comfort them so they can go back and give profit to the bourgeoisie. The gender pay gap and glass ceiling prevent them from improving their condition/ meritocracy is a myth.
Explanation for wealth inequality: functionalism.
Everything in society has a function, even poverty (Durkheim’s organic analogy.)
-The underclass create jobs eg nursing, child services.
-They do the dirty and dangerous work eg bin men.
-They guarantee the status of the wealthy: cant have wealth without poverty.
Davis+Moore- functionalism.
Some jobs are more functionally important than others with hard to acquire skills eg doctors> Tesco worker.
People with valuable skills need to be motivated to work, so get payed more- meritocracy.
Rewards creates motivation.
COVID criticism: shop workers= essential.
Gans: functionalism.
Inequality creates stability in society.
-The threat of poverty keeps people working hard to escape or not end up in that position.
-Some industries benefit from low-payed workers eg clothing.
Explanation for wealth inequality: Weberian theory.
People have different market values- skills that are rare or needed are more valued. Class, status and party all impact the market value of a person. This may stop people from acquiring skills to improve their situation.
Explanation for wealth inequality: traditional Marxism.
Miliband: poverty is as a result of private ownership and the concentration of wealth in the hands of the bourgeoisie. Poverty is inevitable in a capitalist society and the wc are cheap labour that are exploited. Divide+ rule, false class consciousness.
