Governments and Social Inequality Flashcards
Taxation
Income tax is often used bu governments to redistribute wealth from more prosperous to less prosperous groups, and so create a fairer society. Most governments have progressive tax systems where the better-off pay a larger proportion of their incomes in tax. Essential items such as food may be exempt from tax. This benefits poorer groups who spend a larger percentage of their income on food
Subsidies
Governments also try to reduce inequality by giving subsidies to poorer groups. Children in poor families may get free school meals, clothing allowances and help with university fees. Pensioners may get subsidies for fuel and transport. Other subsidies may include free child care for single parents. Low wage earners, unemployed workers and those with long-term disabilities are entitled to benefits
Planning
Governments, charities and housing agencies often give priority to upgrading housing and services in the poorest areas. Planning is often organised geographically and is targeted at the most deprived areas which vary in scale from neighbourhoods to entire regions
Law
Legislation exists which outlaws discrimination on racial, gender, ethnic and age criteria and aims to give equal opportunities to all groups. The poorest groups of workers are protected by minimum-wage legislation
Education
Governments often provide funding for training and upgrading skills in order to raise skill levels and qualifications, improve employment prospects and boost economic growth. Education programmes designed to improve personal health (e.g. diet, obesity, smoking) are often targeted at the poorest groups in society
Income tax rates and bands (UK)
- Personal allowance: 0% up to £11,500
- Basic rate: 20% from £11,501 to £45,000
- Higher rate: 40% from £45,001 to £150,000
- Additional rate: 45% over £150,000
UK government spending (2016- £760 billion)
- Split roughly 75% central/25% local government
- 20% pensions
- 18% health
- 15% welfare
- 12% education
- 35% remainder (e.g. transport; defence; international development)
Taxation (simple)
- People who earn more are taxed a higher percentage on their additional earnings
- Some essential items are exempt from tax
Subsidies (simple)
- Financial aid from the government (e.g. pensions, student loans, benefits)
- Single parents or low-income households can get free childcare
Planning (simple)
- Charities and housing agencies given priority planning permission in deprived areas
Law (simple)
- Everyone must be in education until they are 18.
- Employers cannot judge a candidate based on their race, sex, religion, sexuality
- The law protects people from discrimination based on race, gender (etc)
- Minimum wage protects poorer groups of workers
Education (simple)
- Free and universal
- Education programmes that discuss issues such as drugs and obesity are often directed at schools to improve the personal health of young people