Causes Of Income Inequality Flashcards
What is unemployment
Where a working age adult that is available for a job doesn’t have a job
How many adults in the uk are unemployed
Over 1.4 million
What do individualists believe causes unemployment
People aren’t properly trying to find a job
What do collectivists believe is causing unemployment
Mainly unemployment is out of people’s control
Why do collectivists believe this is cause for unemployment
People are getting made redundant due to them bring replaced by technology and cheaper imports
What’s an example of people losing jobs due to cheaper imports
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
Why does unemployment cause inequality
People need to rely on benefits which are below the average wage
How much of the total work force in the uk are currently unemployed as a percentage
3.8%
What percentage of people in poverty in the uk have at least one person that’s wages are too low
60%
What do individualists believe that a capitalist economy is based on
pay is based on
how valuable the work is therefore high-skilled jobs tend to be rewarded with higher pay than low-skilled jobs.
What do collectivists believe a capitalist economy is based on
Exploiting lower skilled jobs so they can give them lower wages and maximise profits
In 2022 how much did wages rise for the highest fifth of workers
7.8%
In 2022 how much did the lowest fifth earners wages rise
7.5%
What is zero hour contracts
Where a worker doesn’t have a set amount of hours
How much people in the uk had zero hour contracts in 2005 compared to now
2005 100,000
2024 about one million
What a negative of zero hour contracts
People only get paid when they are required to work
Because an employee doesn’t have a set amount of hours why does this cause income inequality
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
Why has the cost of living increased so much in recent years
Ukraine war, Brexit and the Covid 19 pandemic
Why have people struggled with the rising cost of living
Because it has gone up faster than the average wage and benefits
How much have prices gone up in recent times by percentage
3.4%
What was the high of prices being reached and when
11% in 2023
How much did the average house hold energy bill go up in 2022
50%
What do individualists believe people should do because of the cost of living
People need to budget better
What is it called when a poorer person has to spend more money than higher earners because of the cost of living
Poverty premium
What happens in poverty premium
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.
What welfare reforms have made more inequality
The govt has cut the budget of it
How much in benefits can a household receive now
Maximum £22,000
What is the two child limit
A household can only claim benefits for two children
When was the two child brought in
2017
What do individualists believe these welfare reforms do
Motivates people to earn more Money rather than receive little
But what do collectivists believe that the welfare reforms have done
Widened the gap with inequality
