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Question 1

Introduction

Answer 1

One cause of income and wealth inequalities in Scotland is the Cost-of-living Crises.

Question 2

Explain 1

Answer 2

This crisis has massively widened the gap between the haves and haves not in society. This is mainly due to the increase in inflation. This resulted in a rise in price of food, fuel, and housing whilst the rate of wages and benefits did not increase at the same pace. Those who had not previously lived in poverty were beginning to face the reality of living in it.

Question 3

Example 1

Answer 3

For example, between 2022 and 2023 inflation in the UK grew at the rate of 11% while unemployment benefits increased by just 3.1%.

Question 4

Analysis 1

Answer 4

This proves that for many individuals they were faced with not having enough money to cover the essentials for living and for the first time experienced income and wealth inequality as their source of income was no longer enough to afford basic necessities such as heating or rent leading to income and wealth inequalities.

Question 5

Rebuttal

Answer 5

However, many argue that unemployment may in fact be more significant that other factors in causing Income and Wealth Inequalities in Scotland.

Question 6

Explain 2

Answer 6

This is because when someone is unemployed, they are most likely unable to earn the income necessary for survival or to take advantage of opportunities to improve their circumstances. It has been proven that working reduces chances of poverty.

Question 7

Example 2

Answer 7

For example, in May 2024, the Scottish unemployment rate was 4.5%, which is nearly the same as 1 in 20 people in the Scottish workforce.

Question 8

Analysis 2

Answer 8

This shows that because unemployment not only prevents a person from affording essentials such as food, shelf, and clothing, but also opportunities such as work experience which could benefit their chance of permanent employment, unemployment could arguably be more significant than other factors in causing income and wealth inequalities in Scotland.

Question 9

Evaluation

Answer 9

Overall, due to the evidence shown, unemployment is more significant than the Cost-of-living Crises when explaining wealth inequalities. This is because unemployment has always been an issue, unlike the Cost-of-living Crises. A recent survey by the Scottish Government showed that 22% of respondents shifted from a working to a workless household which caused poverty for them. This unemployment caused the Cost-of-living Crises as they could no longer afford the essentials. Therefore, unemployment showed a larger effect and caused more income and wealth inequalities.