4.2 Flashcards
Poverty
When individuals or households are deprived of material possessions and income stopping them having a decent standard living
Absolute poverty
Individuals or households are deprived of basic human needs e.g. food/water
Relative poverty
When individuals or households are poor in comparison to the rest of the population
What is the main reason for poverty
Inequalities in the distribution of income and wealth
The three ways poverty is measured
- Minimum income standards
- Households below average income
- Material deprivation
Minimum income standards (MIS)
A measurement of what is required to achieve a minimum acceptable standard of living
Households below average income
Based on government stats.
Poverty line - household income below 60% of median household incomes
Material deprivation
How affordable a basket of goods is in order for people to have an acceptable standard of living
Causes of a change in poverty
- Age (older people are more likely to live in poverty due to inflation)
- Low wages and unwaged (wages may not be enough)
Social problems caused by poverty
- Increased crime
- Less safe environment for everyone
- Social tension
- Reduced happiness
The distribution of income and wealth
Looks at the differences for individuals and households.
e.g. gender/location
Wealth
Stock concept
Assets owned / human wealth e.g. skills / education
Income
Flow concept
Money generated from wealth
Causes of income and wealth inequality
- Government (tax system etc)
- Wealth
- Human capital
- Wage differentials
- Inheritance
- Income
- Marriage
Equity
The fair distribution of resources in society (normative)
Equality
The equal distribution of resources in society
