4.5 - Reducing Inequality + Poverty

Question 1

What are the 3 main policies designed to reduce income + wealth inequality?

Answer 1

Welfare Systems
Labour Market Policy
Tax reforms

Question 2

What do welfare systems usually consist of?

Answer 2

Direct cash transfers to poorer households
Basic pensions system
Subsidisation (Childcare etc)

Question 3

Labour market policies used to reduce inequality?

Answer 3

Min wage
Employment protection
Unions
UBI
Training incentives

Question 4

How can tax reforms reduce inequality?

Answer 4

Progressive tax systems
Fund state spending with revenue
Corporation/Windfall

Question 5

How can a basic pensions system benefit lower income households?

Answer 5

Allows more + consistent saving on disposable income
Can increase spending on health, education