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Sociology > Wealth And Income > Flashcards

Wealth And Income Flashcards

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Sociology 101 flashcards
1
Q

Define wealth…

A

A stock or real or financial assets such as the ownership of property, shares and savings.

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2
Q

What are the issues when defining wealth and income?

A

Pensions and property as it is hard to convert to cash as we all need somewhere to live. You can be wealthy but cash poor.

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3
Q

What is the solution to defining wealth and income?

A

Marketable wealth, anything that can be sold.

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4
Q

The richest 10% own how much % of all wealth?

A

44%

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5
Q

The richest 1% own the same as the poorest…

A

55%

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6
Q

44% and 55% who came up with these figures?

A

Equality Trust 2015 based on ONS 2014

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7
Q

Define income…

A

A flow of money consisting of earned (salaries and wages) and unearned income (interest, rent, dividends, social security payments).

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8
Q

Define disposable income…

A

The amount left after taxes

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9
Q

Define discretionary income…

A

The amount left after essentials have been brought.

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10
Q

Define household income…

A

The combined income of a household

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11
Q

What are the 3 ways of measuring wealth?

A

Inheritance tax, surveys and tax brackets.

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12
Q

Describe inheritance tax and its limitations In measuring wealth…

A

40% above £325,000. Avoidance £3000 gifts, £5000 children’s marriage.

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13
Q

What are the limitations of using surveys when measuring wealth?

A

Low response rates, Unknown, privacy, validity.

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14
Q

What are the limitations of using tax brackets when measuring wealth?

A

Off shore accounts, lie about salarys.

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15
Q

Sikka 2005 estimates

A

The U.K. Looses £25bil each year due to tax evasion. Self employment sale rides are X1.5 larger than reported.

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16
Q

In 1970 the 10th from the top earned….

A

X2.5 more than 10th from the bottom, in 2010 it was x3.8.

17
Q

How do you become wealthy?

A

Inheritance, entrepreneurship, chance and saving.

18
Q

Which is more evenly distributed, income of wealth?

A

Income

19
Q

In 2013 the top 10% earned…

A

X10 more than the bottom 10%

20
Q

The gini coefficient has risen from…

A

0.24 in 1977 to 0.34 in 2012

21
Q

How is wealth redistributed?

A

Direct taxes - progressive
Indirect taxes - regressive
Cash benefits
Benefits in kind (NHS,education)

22
Q

How much does redistribution reduce inequality?

A

2/3rds

23
Q

What is the intersectionality of income distribution?

A

Gender, ethnicity, age, disability and occupational class

24
Q

Fact about income distribution and gender?

A

Men earn 9% more per hour than women

25
Q

Fact about income distribution and ethnicity?

A

Discrimination/ education

26
Q

Fact about income distribution and age?

A

30-65 higher wages

27
Q

What are the 2 reasons to explain the growth in economic inequality?

A

Labour market polarised between secure well paid jobs and insecure poor paid jobs. Family changes (single parent families).

28
Q

What are the 6 things Kersley and Shaheen 2014 used to explain the growth in economic inequality…

A

Globalisation, technology, financialisation, government redistribution, political capture, trade unions.

29
Q

How does globalisation explain the growth in economic inequality?

A

Outsourcing under wins low skilled workers, skill intensive jobs are concentrated in the Uk, more opportunities for the rich.

30
Q

How does technology explain the growth in economic inequality?

A

Computerisation/process innovations put unskilled workers out of jobs high skilled workers paid to invent/man the equipment.

31
Q

How does financialisation explain the growth in economic inequality?

A

Organisations make money from money, wages earn less than investors

32
Q

How does government redistribution explain the growth in economic inequality?

A

Benefits decreased (austerity programmes) tax decreased eg top bracket 85% in 1980 to 45% now (income).

33
Q

How does political capture explain the growth in economic inequality?

A

Corporate capture in democracy, extend policies that protect their interests, low paid disillusioned by policies and stop voting, government don’t represent them.

34
Q

How do trade unions explain the growth in economic inequality?

A

45% on 1980, 25% today. CEOs can exploit workers not part of an Union to maximise profit.

35
Q

What are 2 additional reasons for economic inequality…

A

The government has failed to close tax loopholes, inflation within property market means the rich get richer and the poor can’t afford to even get a property.

36
Q

Pensions are part of the?

A

Contributionary principle.

Sociology (15 decks)

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