Innequality Flashcards
1
Q
Marketable wealth
A
transferable between individuals
2
Q
Non-marketable
A
wealth specific to one person + non-transferable
3
Q
4 ways wealth is acquired
A
Inheritance
Marriage
Income
Chance
4
Q
(2) UK wealth share
A
Bottom 50% have 7% More working class households in poverty tan non-working
5
Q
4 causes of income inequality
A
Weak trade unions
Less progressive tax
Welfare reduction
Structural unemployment/ 2nd Kuznets curve
6
Q
3 costs of poverty
A
Creates disincentive to work due the reduced net gain
Moral hazard created as state welfare means no need to risk working when more working households are in poverty
Raises health expenditure and crime (costs 7.7% of GDP)
7
Q
3 solutions to inequality
A
Land tax (non-evadable + v.proggresive)
Increased welfare spending safety nets (for every £0.77 given £1.79 spent on local economy)
Training
