poverty Flashcards
what is absolute poverty
Absolute, or subsistence, poverty refers to a lack of minimum requirements necessary to subsist and to maintain life, health and physical efficiency.
limitations of using absolute poverty
ignores:
-social needs
-treats people as biological machines
-value judgements
-cultural needs
what is relative poverty
Relative poverty defines poverty in terms of social inequality, taking into account social and cultural needs.
how is relative poverty measured?
using townsends deprivation index and the minimum income standard
strengths of using relative poverty
It recognises poverty as a social construction.
It recognises that what constitutes poverty can change between societies and over time within the same society.
It links poverty to wider issues of social exclusion and recognises the social, cultural and environmental dimensions of poverty.
limitations of relative poverty
It is a measure of social inequality, rather than an indicator of poverty.
It includes value judgments as to what constitutes a reasonable standard of living.
It is difficult to establish what counts as an acceptable standard of living and the cultural need that should be included.
who are mack and lansley
reconstructed townsends deprivation index and created a consesus for what makes up ‘neccesities
wealth statistic
According to the Office of National Statistics, in the UK, the wealth held by the top 10 percent of the population is around four times greater than that of the bottom half of all households combined, and over 850 times greater than the least wealthy 10 percent of households.
who is most likely to be in poverty
Within households at greater risk of poverty:
13% were pensioners.
16% were lone parents.
28% were children.
22% belonged to minority ethnic groups.
22% were disabled.
what is the distribution wealth
Redistribution of wealth refers to the transfer of wealth and income from one individual or group to another individual or group by means of social mechanisms,
methods to redistribute income
Social welfare benefits – payments paid by the state to needy members of society.
Income tax – tax paid on earned or unearned income.
Inheritance tax – a tax paid when people give gifts of wealth.
Capital gains tax – a tax paid when gaining significantly from the sale of an asset.
tax evasion
Tax evasion is also an issue: people do not always declare their income or wealth so they don’t have to pay tax on it.
Tax avoidance is where people, mainly the wealthy, employ accountants to find legal ways of avoiding paying tax and therefore redistribute their wealth
