4.2.1 Absolute and relative poverty

Question 1

Absolute poverty

Answer 1

Lacking basic necessities to survive
-Absolute poverty can decline at the same time as relative poverty is increasing

Question 2

Measures of absolute poverty

Answer 2

World bank definition - Anyone living less than $1.90 a day

Question 3

Relative poverty

Answer 3

Relatively poor compared to the rest of your country
-There may be relative poverty in a country but not necessarily absolute poverty.

Question 4

Measures of relative poverty

Answer 4

In Britain, relative poverty is classed as being those with an income of less than 60% below median household income.

Question 5

Causes of inequality: Absolute poverty

Answer 5

• A rise income and GDP - state can provide more resources to ensure basic necessities are met.
  -Rise in population - rapid population growth can strain resources.

Question 6

Causes of inequality: Relative poverty

Answer 6

-Inequality in wage growth - higher paid jobs see high growth than those on lower wages.
E.g. public sector workers have had low wage increases, and several year of falling real wages in the last decade due to austerity. The richest are paid 160 times that of the average worker.
- Deindustrialisation - increased the number of service sector jobs.
- Decline in trade unions - left many workers unable to bargain for higher wages.
- State benefits have fallen in relative value and taxes are regressive.