3.7.2 - The Problem of Poverty Flashcards
What is poverty?
The state of being extremely poor and not having enough money or income to meet basic needs.
What is poverty caused by?
A low real national income relative to a country’s total population size alongside inequalities in the distributions of income and wealth.
“A low real national income relative to a country’s population size” - Absolute poverty or relative poverty?
Absolute poverty.
“Inequalities in the distributions of income and wealth” - Absolute poverty or relative poverty?
Relative poverty.
What is absolute poverty?
A severe deprivation of basic human needs (water, food, education, sanitation etc.)
Not just predicated on income.
What is relative poverty?
Income is below a specified proportion of average income.
What is the poverty percentage in the UK?
60% of the median income.
What are the main reasons for poverty in the UK?
Old age
Unemployment
Low wages
How does old age cause poverty?
Many old people are reliant on the state pension, lacking a private pension.
Prior to the 1980s, the state pension increased in line with the increase in national prosperity. After the 1980s, pensions became linked to inflation, meaning the state pensions stagnated in real buying terms to the 1980s rate.
‘Triple Lock’ pensions were then introduced by the Conservative government in 2011. The state pensions rises by either CPI inflation, earnings or 2.5% (whichever is greatest).
How does unemployment cause poverty?
Benefits are generally lower than the pay workers received in work.
During austerity, the coalition government announced a limit on the total amount of benefits that people aged 16 to 64 could claim. This may have increased poverty, but might have also reduced unemployment as people on benefits looked for work.
The ‘grey vote’ may cause governments to increase state pensions rather than increase benefit spending.
How can low wages cause a poverty trap?
People on low wages sometimes make too little to survive so claim benefits as well. Sometimes people enter a poverty trap wherein it becomes more economically viable to stay at home to look after children as their work incomes will not offset childcare costs.
What are the effects of poverty?
Educational deprivation
Health deprivation
Community damage
How is educational deprivation an effect of poverty?
Those on free school meals during GCSEs average 1.7 grades lower than those who are not.
Due to their status in poverty, they are on average, less educated so find it more difficult to get into further education.
How is health deprivation an effect of poverty?
Poverty is associated wiht higher risk of illness and premature death, with children weighing more than 200g less than those born in richer areas. This is likely due to the malnutrition of people in these areas.
Health is also affected as those on lower incomes are more likely to consume demerit goods such as cigarettes or fast food, increasing their reliance on the NHS.
Why is community damage an effect of poverty?
Those born into poverty are more than twice as likely to live in inadequate housing, having detrimental effects on their physical and mental health alongside academic achievement.
Some families are forced to choose between food or heating causing distress to children, damaging academic achievement.
