Reasons for Wealth Inequality Flashcards
Point 1
Unemployment
What is unemployment
The situation where someone who is able to/wants to find work however is unable to.
Unemployment Evidence
Scotland’s employment rate now stands at 74.2% - lower than the corresponding rate of 75.7% for the UK as a whole.
Unemployment Analysis
This shows that there has been a major increase in the number of unemployed Scots who will ultimately be unable to afford day-to-day necessities and will fall victim of wealth inequality.
Point 2
Low Pay
What is low pay
Low pay means that, despite being employed, people are not being paid enough to meet the cost of daily life.
Low pay evidence
For example, the minimum wage is currently £10.42 per hour for workers aged 23 and over.
Low Pay Analysis
This shows that, despite being in work, someone being paid minimum wage isn’t being paid an adequate salary to support day-to-day life.
Unemployment and Low Pay Link
Therefore, unemployment is the main cause of wealth inequality as people have no way of affording day-to-day costs, but low income is also a major factor as people will not have the money to pay their bills and will likely need outside support.
Point 3
Poor Education
What is Poor Education
This means that someone who has received little or very poor quality education will likely suffer wealth inequality in the UK.
Poor education evidence
For example, people with no qualifications are almost 40% likely to live in poverty compared to 11% of people with degree level qualifications.
Poor education analysis
This shows that people with poorer levels of education or lower qualifications are more likely to find themselves living in poverty.
Point 4
Ethnicity
What is ethnicity
This means that someone from an ethnic background is more likely to be discriminated against compared to white people.
