7.2 The Problem Of Poverty Flashcards
What is poverty?
State of being extremely poor and not having enough money or income to meet basic needs
What is poverty caused by?
Low national incomes
Inequality
What is relative poverty?
When an income is below 60% of average income
What is absolute poverty?
A condition characterised by severe deprivation of basic needs, food, safe drinking water, sanitation, shelter education (depends on income but also access to services)
What are the 3 causes of poverty in the UK?
-old age
-unemployment
-low wages
How is old age a cause or relative poverty?
Reliance on state pension and lack of pension
State pensions changed from changes in real earnings to inflation
-old people reliant completely on the state are becoming increasingly worse off in comparison to older people
How does unemployment cause poverty?
Unemployment benefits lower than pay of working, increase in unemployment therefore causes an increase in poverty, Government more in favour to make changes to state pension instead of unemployment because of political reasons
How does low wages cause poverty?
Many unskilled workers and are relatively poor as a result
NMW is an attempt to reduce poverty of the low wage
What are the three effects of poverty in the UK?
Educational deprivation
Health deprivation
Effect on communities
How does poverty cause educational deprivation?
Children from poorer backgrounds lag in all stages of education
By the age of 3 poor kids 9 months behind rich kids
Children receiving free school meals receive 1.7 grades lower on GCSEs
How does poverty cause health deprivation?
Higher risk or illness and death due to poor nutrition, disabilities and dealing with Cronin expensive illnesses
What is the effect of poverty on communities
Children living in poverty 2x more likely to live in bad housing
Fuel poverty means family have to choose between food and heating and can’t go on holidays away from home
What are bed-blockers
Old people remaining in hospital after they have been treated because there is no where els to go
What is ppp
The rate at which the currency of one country would be in another county
What is the issues associated with absolute poverty by(5 asp)
-lack of education
-depleted environment
-corruption and conflict
-poor health and nutrition
-poor gov
How is relative poverty defined in the UK?
Below 60% of median income
What is persistent poverty?
Being in relative income poverty both in current year and at least 2 of the 3 preceding years
What are the main causes of absolute poverty?(7 asp)
-effects of corruption in gov and businesses
-low employment rates
-absence of basic property rights
-damaging effects of civil wars and natural disasters
-high debt and interest rate levels
-absence of basic government/ public services
-population growing faster than GDP in low income countries
What is the gig economy?
Where people work on 0 hour contracts
What are the causes of relative poverty(notes)(5 asp)
-unemployment
-inheritance
-lack of human capital
-lack of financial capital
-changing nature of society
How is unemployment a cause of relative poverty?
-benefits may be below society’s median income
-mental and physical illness affect ability to work and earn money
-changing pattern of demand of labour
How is lack of human capital a cause of poverty?
Unskilled workers can only sell their labour to services for low wages
How does a lack of financial capital cause relative poverty?
An ageing population and fuel poverty
How is the changing nature of society a cause of relative poverty?
Divorce rates/single parent homes and child poverty
