SI - ST1: Wealth Inequality Flashcards
Intro
There are many causes of wealth inequality. Some would argue that unemployment or low pay are the most likely to cause wealth inequality that lead to poverty whilst others would argue that low educational attainment is more likely to see someone suffer from poverty. Ultimately, this response will argue unemployment to be the factor most likely to cause poverty.
Para 1 - KU
One reason for wealth inequality is unemployment.
This is because not having a job means that a person is likely not making enough money to buy basic needs to survive such as food, shelter and clothing. Being unemployed might also mean that a person isn’t able to take advantage of opportunities that will help them to gain the skills required to get a job, such as unpaid internships, work experience or educational courses, as they can’t afford to do so. This means that they will likely not get employment and struggle to survive.
Para 1 - example
For example, the Joseph Rowntree Foundation (JRF) showed in 2022 that in households where someone is in full time work, the poverty rate is 10%. This is compared to households with no work where the poverty rate is around 50%.
Para 1 - A
This shows that unemployment can cause wealth inequality because if someone doesn’t work then they will likely struggle to survive as they are unable to afford basic necessities, which can lead to them living in poverty. If someone has no job, they may be unable to pay for housing which could lead to homelessness. As well as this, being unemployed would cause stress which can have long-term mental and physical health effects.
Para 1 - Benefits KU
However, unemployment is not the sole reason for wealth inequality. If someone is unemployed, they are also more likely to be dependent on benefits which makes them even more vulnerable to poverty. This is because benefits in the UK are lower than other countries’ and decisions taken by the UK government to restrict, increase, freeze or decrease benefits can have a large impact on the amount of people living in poverty. This also means that families that rely on their benefits don’t always have enough to survive as their income is constantly fluctuating.
Para 1 - benefits example
For example, the Joseph Rowntree Foundation showed in 2022 that the poverty rate for families relying on Universal Credit is 54% compared to the poverty rate of 15% for families who do not rely on benefits.
para 1 - e
Overall, unemployment is the most important reason for wealth inequality because people that are unemployed have very little income to survive on and are also more likely to rely on benefits which means they don’t have a stable wage to rely on to pay their bills and buy essentials like food and also makes their daily lives unstable as they never know how much money they will be provided to live on.
para 2 - KU
Another reason for wealth inequality is low pay. This is because if someone doesn’t earn a lot of money from their job they are likely unable to afford basic necessities such as food, clothing, shelter, etc. as they wouldn’t have the sufficient funds to afford them. If someone has a job, even if it’s low paying, they are also unable to claim many benefits which would mean they aren’t making a lot of money on top of their job, which could possibly land them in poverty. Having a job doesn’t exclude someone from poverty as the poverty rate for the country is higher than the unemployment rate.
para 2 - example
For example, the UK unemployment rate at the end of 2021 was around 4% which is significantly lower than the working age poverty rate of 20% in the UK.
para 2 - A
This shows that low pay causes wealth inequality because if employment alone was enough to avoid poverty, the poverty rate should be much lower than it is. This means that low pay must contribute to poverty.
para 2 - KU women and young
However, low pay is more likely to lead to wealth inequality for women and young people in particular.
This is because women and young people are more likely to work part time jobs, which are lower paying, as they are flexible and allow them to fulfil their caring roles and educational responsibilities whilst still earning money. This has resulted in many families falling below the poverty line and becoming “working poor households”, particularly those with a single mother. Additionally, working part-time can lead to poverty as those working part-time make less money than someone who works full time as they are working less hours.
para 2 - women and young example
For example, part-time worker poverty rates are more than double the poverty rates of full time workers (23% compared to 10%).
para 2 - e
Overall, low pay is a somewhat significant cause of poverty. However, it is not as important as unemployment because if someone is unemployed they have much less money to survive on compared to someone who is low paid. Someone who is low paid has a more stable income compared to someone who is unemployed who may only have access to a small amount of benefits.
para 3 - KU
A third reason for wealth inequality is low educational attainment. This is because higher qualification levels and skills are associated with higher earnings and better employment prospects which reduces the risk of poverty for highly qualified people and their children. If someone doesn’t get high qualifications at school, it is likely that they will struggle to get a well paying job which can lead to poverty as they wouldn’t have the money to afford basic necessities such as food, clothes, shelter, etc.
para 3 - example
For example, just over 1 in 10 working age adults with an undergraduate degree or above are living in poverty compared with more than 4 in 10 working-age adults with no qualifications.
para 3 - A
This shows that low educational attainment causes wealth inequality because most well-paying jobs require having high qualifications which means those without them will find themselves in jobs with little pay so therefore leads to poverty. Also, schools help people learn essential life skills such as how to pay bills, reading clocks, how to look after your physical and mental health, etc. so someone with low educational attainment may struggle with these skills which could lead to them living a poorer quality of life.
para 3 - e vs s KU
However, low education may not be the most important reason for wealth inequality because some places in the UK struggle less with this than others. This is because education is a devolved power, meaning it is different in each of the 4 UK countries. In Scotland, students don’t have to pay to go to university as it is provided by the Scottish government. In contrast, English students must pay fees to attend university. This means that Scottish students from poorer backgrounds will have fewer financial concerns about affording university in contrast to English students who may need to take out a loan each year just for tuition.
para 3 - e vs s example
For example, according to UCAS, English students can pay up to £9,250 a year to go to university in 2023. Most Scottish students will not generally have to pay to go to university in Scotland for their first degree. Considering the poverty rate in Scotland is 3% lower compared to England, the greater barriers to education may explain some of England’s higher poverty rate.
para 3 - e
Overall, educational attainment is a somewhat significant cause of poverty. However, it is not as important as unemployment because it is still possible to enter into a successful and adequately paid job without educational qualifications. Opportunities may be harder to come by but it is possible. Whereas, it is considerably more challenging to avoid poverty if you are unemployed as you are more reliant on benefits or other support to meet your living needs.
conclusion
As set out, it is clear that factors such as low pay and low educational attainment do increase people’s risk of experiencing wealth inequalities. Low pay increases people’s risk of experiencing poverty as if you are working a low paid job, you will likely struggle to find the money to pay for basic necessities e.g food and may use credit cards to pay for these items which can land them in debt. Low educational attainment increases people’s risk of experiencing poverty as the majority of well paid jobs require high qualifications which means that people without high qualifications may struggle to find a well paying job and might also lack the basic skills that are taught in schools which could land them in poverty
However, as argued this response shows that a factor such as unemployment is a greater contributor to poverty than any of the other factors discusses due to the fact that people who are unemployed do not have a job that they can rely on for money which means that they will struggle to pay for basic necessities and will likely have to depend on benefits each month in order to survive which can lead to them living in instability as the amount they are given can be changed or removed at any time.
