Causes Of Income Inequality Flashcards

1
Q

What is unemployment

A

Where a working age adult that is available for a job doesn’t have a job

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2
Q

How many adults in the uk are unemployed

A

Over 1.4 million

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3
Q

What do individualists believe causes unemployment

A

People aren’t properly trying to find a job

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4
Q

What do collectivists believe is causing unemployment

A

Mainly unemployment is out of people’s control

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5
Q

Why do collectivists believe this is cause for unemployment

A

People are getting made redundant due to them bring replaced by technology and cheaper imports

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6
Q

What’s an example of people losing jobs due to cheaper imports

A

Thousands of people are losing jobs in steel factories due to steel being really cheap if being imported from China and 3,000 people losing jobs at port talbot

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7
Q

Why does unemployment cause inequality

A

People need to rely on benefits which are below the average wage

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8
Q

How much of the total work force in the uk are currently unemployed as a percentage

A

3.8%

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9
Q

What percentage of people in poverty in the uk have at least one person that’s wages are too low

A

60%

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10
Q

What do individualists believe that a capitalist economy is based on

A

pay is based on
how valuable the work is therefore high-skilled jobs tend to be rewarded with higher pay than low-skilled jobs.

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11
Q

What do collectivists believe a capitalist economy is based on

A

Exploiting lower skilled jobs so they can give them lower wages and maximise profits

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12
Q

In 2022 how much did wages rise for the highest fifth of workers

A

7.8%

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13
Q

In 2022 how much did the lowest fifth earners wages rise

A

7.5%

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14
Q

What is zero hour contracts

A

Where a worker doesn’t have a set amount of hours

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15
Q

How much people in the uk had zero hour contracts in 2005 compared to now

A

2005 100,000
2024 about one million

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16
Q

What a negative of zero hour contracts

A

People only get paid when they are required to work

17
Q

Because an employee doesn’t have a set amount of hours why does this cause income inequality

A

Because they aren’t guaranteed hours to work and a low amount of hours means they don’t get paid as much or no hours at all with them also missing out on parental leave

18
Q

Why has the cost of living increased so much in recent years

A

Ukraine war, Brexit and the Covid 19 pandemic

19
Q

Why have people struggled with the rising cost of living

A

Because it has gone up faster than the average wage and benefits

20
Q

How much have prices gone up in recent times by percentage

A

3.4%

21
Q

What was the high of prices being reached and when

A

11% in 2023

22
Q

How much did the average house hold energy bill go up in 2022

A

50%

23
Q

What do individualists believe people should do because of the cost of living

A

People need to budget better

24
Q

What is it called when a poorer person has to spend more money than higher earners because of the cost of living

A

Poverty premium

25
Q

What happens in poverty premium

A

poorer people tend to pay have to pay higher interest rates on loans, a higher unit
cost if they have pre-paid metres for energy and are less likely able to bulk buy food.

26
Q

What welfare reforms have made more inequality

A

The govt has cut the budget of it

27
Q

How much in benefits can a household receive now

A

Maximum £22,000

28
Q

What is the two child limit

A

A household can only claim benefits for two children

29
Q

When was the two child brought in

A

2017

30
Q

What do individualists believe these welfare reforms do

A

Motivates people to earn more Money rather than receive little

31
Q

But what do collectivists believe that the welfare reforms have done

A

Widened the gap with inequality