Chapter 2 Flashcards
Wealth vs Income
Income is economic gain from wages, income transfers (eg. From government) or ownership.
Distribution of income in Canada has been quite stable since at least the 1970s until the mid 1990s when inequality increased
Wealth is the value of all economic assets, including income and savings.
Measuring Poverty
1) Relative poverty
2) Absolute Poverty
Relative Poverty
LICOs (Low Income Cut Offs) = a “poverty line” drawn for households that on average spend 6% of their after tax on food, clothing, and shelter
Figures vary for size of households and communities
It s relative because the calculation and expenditure for the general population
Absolute Poverty
Market Basket Measure based on an essential basket of goods and services deemed necessary for physical survival
Eg food, clothing, personal care items, rent including utilities, transportation
May include food bank use, charity, used products and only remedial (vs preventative) health care
Absolute vs Relative Poverty
Absolute Poverty measure - asks what level of income is requires to enable people to afford the basic necessities of life?
Relative Approach asks: What level of income is required to maintain anc acceptable standard of living relative to the average of society
A social problem (by definition and impact)? Political implications (budget, social services)
Comparing Canada to the World
Social spending has stayed relatively the same from 2007 - 2016 in Canada.
Canada also falls below OECD 2016
Comparing Canada to the third world
Gini coefficient of 0=complete equality
1= complete inequality
Canada sits at .30 behind Korea
Absolute Poverty
A condition that exists when people do have the means to secure the most basic necessities of life (food, costing and shelter)
Relative Poverty
A condition that exists when people can afford the basic necessities such as food, clothing, and shelter but cannot maintain an average standard of living in comparison to that of other members of their society or group.
Populations of low and middle class nations
The population is set to increase in these nations by 60%, versus 11% in high income nations.
This is despite the disparity in life chances
“New International Labour” perspective - the answer is in the global organization of manufacturing production.
Social Stratification
Hierarchical arrangement of large social groups on the basis of their control over resources
Social Classes
Karl Marx - divides capitalist society into two groups (bourgeoisie capitalist class, proletariat,working class)
Economic factors were important in determining social location
Weber - multidimensional model of wealth, power and prestige
Weber - social Class
Was interested in peoples life chances - the extent to which individuals have access to important societal resources such as food, clothing, eduction, and health care. Multidimensional model of class position
Wealth
Is the value of all economic assets including income and savings personal property and income producing property minus ones liabilities or debts
Income
Refers to the economic gain derived from wages salaries and income transfers (governmental aid such as income assistance welfare or ownership of property.
Canada has higher income inequality than Europe and lower than the US
Power
Is the ability of people to achieve their goals despite opposition from others
Prestige
The respect,esteem, or regard accorded to an individual or group by others
Wright - says neither Marx nor Weber defines classes in modern capitalist society more explains economic disparity 4 criteria for placement in the class structure:
4 criteria:
1) Ownership of the means of production
2) purchase of the labour of others
3) control of the labour of others
4) sale of one’s own labour
social stratification
hierarchical arrangement of large social groups on the basis of their control over basic resources
widening ga in wealth linked to global stratification
Wealth and Income Inequality
correlate with life chances
If there was no inequality in income in Canada, each 5th of the population would receive 20 percent of the available income
from 1976 each income quintile remains stable until the mid 1990s
Canada’s Lower Class
20% of the population and comprises the working poor and the chronically poor
Measuring Poverty: Low Income Measure(LIM)
is half of the median family income. those below that level have a low-inomce. The LIM is adjusted for family size.
Measuring Poverty: Low Income Cut Off (LIC)
the income level below which a family would devote 50+% of their income on food clothing and shelter - this is adjusted for family and community size and before or after taxes.
Market Basket Measure (MBM)
the income a family would need to be able to purchase a basket of goods that includes food, shelter, transportation and other basic needs.