3)Poverty

Question 1

What are the two types of poverty and how are they defined (in terms of money)

Answer 1

Absolute poverty= having difficultly subsisting, defined by world bank as living on below $1.90 a day. can’t afford necessities
Relative poverty= in relation to the overall distribution of income in a country, in the UK relative poverty set at 60% of the median average (£244 or less per week). No luxuries.

Question 2

Problems with measuring relative poverty

Answer 2

• Someone can be lifted from relative poverty simply because the people around them are becoming poorer
• Homeless people and people living in B&B accommodation are excluded from calculating 60% of median.
• Being low income does not mean you have a low standard of living

Question 3

Problems with measuring absolute poverty

Answer 3

They won’t tell you if those at the bottom are falling even further behind those in the middle, and won’t take into account changes in what we see as the minimum acceptable standard of living.

Question 4

Causes of poverty worldwide

Answer 4

• Vulnerability to natural disasters
• War and politics unstable
• National debt
• History
• social inequality

Question 5

Causes of poverty in the UK

Answer 5

• Higher levels of structural and long term unemployment
• Inequality in wages and earnings growth
• Falling relative value of state benefits
• inheritance
• regressive tax

Question 6

What is HDI and how does it measure poverty/economic development?

Answer 6

Human development index

• GDP per capita
• mean years of schooling
• life expectancy at birth