Inherited Wealth Flashcards
What is inherited wealth
Inherited wealth is when a person dies and passes on assets (like a house) to certain people in their family.
What did the IFS say
The IFS says “its getting much harder for young adults who are not part of the lucky half to accumulate wealth of their own”.
What advantages do people with inherited wealth get
This is because people who inherited an asset get an advantage in life and are able to afford more things like buying another house where as people who didn’t inherit anything will struggle to get a house as the average house price in the UK is a lot more money than the average salary.
What disadvantages does an average person with no inherited wealth have
Which means if an average person wanted to get a house they would have to save money to put down a deposit and then borrow money from the bank to buy a house and pay it off as a mortgage which could take several decades to pay off, which leads to major inequality as it widens the gap between rich and poor as poorer people are stuck having to pay off mortgages etc to the bank where as a richer person who has inherited a house could just buy one since they could have extra money saved.
Why is inherited wealth an important inequality and what problems does it cause
Inherited wealth is an important inequality as it’s a problem around the whole country and affects a lot of people and makes the gap between the rich and the poor bigger. This particular inequality isn’t getting much better because of the rising costs of houses etc and since most people inherit an asset like a house it furthers the gap more since it would be difficult for the poor who didn’t inherit an asset to catch up to the rich, which is why inherited wealth is more important than other factors.
