4.2.1. Absolute and Relative poverty Flashcards
What is absolute poverty?
Situation where individuals can’t afford to acquire basic necessities for a healthy and safe existence e.g. Shelter, water, nutrition, clothing and healthcare
What did the world bank decide the amount of money for being in absolute poverty was (per day)?
If someone living off $1.90 or less a day in absolute poverty.
Where is absolute poverty seen more?
Seen more in developing countries more than developed ones
What is relative poverty?
Situation where household income is a certain % less than the median household income in the economy. Poverty in household considered relative to income levels in other households. Income after deducting household costs
What % does the UK define relative poverty as?
If households living with less than 60% of the median household income
If median UK household income was £2072/month what is the relative poverty line?
Households earning less than £1243.20/month
Where does relative poverty usually occur?
The main form of poverty that occurs in developed countries
What is the poverty line?
The minimum level of income deemed necessary to achieve an adequate standard of living in a given country
When are the reasons for how absolute and relative poverty can change over time?
-GDP increases and can cause AP to fall
-Growth in underemployment, zero hour contracts, part-time jobs and temporary jobs all of which mean lower wages
-Decline of TU’s left many workers unable to bargain for higher wages
-State benefits fallen and taxes more regressive
-Long-term + Structural unemployment risen
What is the reason for why there has been increasing relative poverty in the UK?
This is due to the growing inequaliity in wages grwowth with the higest paid jobs seeing their wages higher than those on lower wages. The wages of the richest can bee seen as 170x the average workers comaped to 60x before
