Wealth And Income Inequalities Essay Flashcards
What are the factors for wealth and income inequalities?
- Unemployment
- Low paid jobs
- Educational attainment
- Rising cost of living
What is background information for wealth and income inequalities.
- This is where people are disadvantaged through employment or salary
- Budgeting is easier for high earners
- Current day prices can cause poorer households to have to make difficult financial decisions
What is your knowledge for unemployment.
- This is where working age adults are available to work but are not in paid employment.
What are examples for unemployment?
- 1000s of UK steelworkers lost their jobs as steel was produced cheaper in China
What is your analysis for unemployment.
- Individualists argue that it is the employees fault for their unemployment while collectivists say it is due to factors outwith their control.
- It causes inequality because the unemployed come to rely on benefits which are below the average earnings
What is your evaluation for unemployment.
The unemployed only make up 4% of the workforce so it is not largely significant to the cause of wealth and income inequalities.
What is your knowledge for low paid jobs.
- 60% of those in poverty live in a house where someone doesn’t earn sufficient wages to live
- 1 million low paid jobs are 0 hour contracts so there are no set hours and employees only work when they are needed
What are examples for low paid jobs?
- The average FTSE 100 CEO is paid more in 4 days than the average UK worker in a year
What is your analysis for low paid jobs.
- Individualists argue that salary is equivalent to your skill while collectivists see capitalism as exploitation for employees for the benefit of those higher up
- This creates financial insecurity and leaves the employee with no employment rights and therefore inequality forms
What is your evaluation for low paid jobs.
Some people may just lack the skills that employers for high paying jobs are looking for, for example a university degree or years of experience, and so ties with educational attainment
What is your knowledge for rising cost of living.
- Recent rises in cost of living are accelerating past wages which should not be happening, they should increase at the same pace
- Budgets needs to be rethought and poor houses are having to make difficult cuts or be forced into poverty
What are examples for rising cost of living?
- In 2022 inflation was 11% and energy bills were up by 50%
- IFS said the poorest 10th of the country spend 3x as much of their budget on bills than the richest 10th
What is your analysis for rising cost of living.
- The Ukraine war, Brexit and COVID have all caused high expenses due to trading need to be rethought and material prices increasing for corporations
- Poverty premium is where essentials cost more poorer people
What is your evaluation for rising cost of living.
Many are already trapped into poverty before this crisis and so only furthered the inequality and did it cause it specifically.
What is your knowledge for educational attainment.
- This is the highest level of education a person has completed
- It is both a cause and consequence of inequality
What are examples of educational attainment?
- Graduates earn on average £10,000 more per year
- Low income families may struggle to support their child in education for multiple factors e.g. having to work multiple jobs or not having the education theirselves
What is your analysis for educational attainment.
- Higher qualifications increase chances of receiving higher pay in a job
- Individualists argue this is because of a lack of effort while collectivists see it instead as a lack of opportunity
- The high cost of university if a deterrent for many poor students
What is your evaluation for educational attainment.
It is significant through its cause and effect cycle which traps parents and children and so on into poverty.
