Wealth and Income Inequalities Guide Flashcards
What are wealth and income inequalities?
This is where people are disadvantaged through employment and salary.
How is budgeting for high earners?
High earners are able to budget easily and afford the current prices.
How is budgeting for low earners?
Low earners struggle to budget and therefore have to make difficult decisions and cuts when budgeting.
What is unemployment?
Unemployment is when working age adults are available to work but are not employed.
What is the individualist view on the unemployed?
Individualists believe that people are unemployed due to not working hard and not abiding by the rules in their job.
What is the collectivist view on the unemployed?
Collectivists believe that people are unemployed due to factors outside of their control, such as their boss letting them go due to cut hours.
What does the economy have to do with unemployment?
The economy is constantly changing which costs people work.
What happened to the UK steelworkers.
Thousands of UK steelworkers lost their jobs as steel became cheaper to produce in China.
How does benefits cause inequality?
Due to the unemployed having to rely on benefits this causes inequalities because benefits are below the average earnings in the UK.
How much of the workforce for the unemployed take up?
The unemployed only make up 4% of the workforce and so it is not a largely significant factor in wealth and income inequalities.
How many people in poverty live in a house where someone doesn’t earn sufficient living wages.
60% of those in poverty live in a house where someone doesn’t earn sufficient wages to live.
What is the individualist view on why people are in low paying jobs?
Individualists believe that people with low paying jobs have them because your salary is equivalent to the skills and qualifications that you have.
What is the collectivist view on why people are in low paying jobs?
Collectivists recognise that capitalism exploits employees so that managers, executives and CEOs can receive higher pay and benefits.
What is the difference between the FTSE 100 salary and the average worker?
The average FTSE 100 CEO is paid more in 4 days than the average UK worker is in a year.
How many people are in 0 hour contract jobs?
1 million people in low paid jobs are on a 0 hour contract that means they have no set hours to work per week and so only work when they are needed.
Why do 0 hour contracts create financial insecurity?
0 hour contact jobs create financial insecurity because employees can go weeks without work or weeks with extensive work, and on top of this they do not have any employment rights and therefore the inequality forms.
How does educational attainment impact 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 this ties in with educational attainment making less impactful as a stand alone factor.
What have been the recent accelerations of cost of living and wages?
Recent rises in cost of living are accelerating past wages which should not be happening, they should increase in the same pace - hand in hand.
What are some of the causes of the rising cost of living?
The Ukraine War, Brexit, and COVID Pandemic have all caused higher expenses due to trading needing to be retouch and material prices increasing for corporations.
What were the 2022 inflation and energy rates?
In 2022 inflation was 11% and energy bills were up by 50%.
How is the rising cost of living impacting the budgets in poorer households?
Budgets are needing to be rethought and poor houses are having to make difficult cuts or be forced into poverty. This isn’t the same for richer households.
What is poverty premium?
Poverty premium is where essentials cost more for poor people and so take up more of their budget.
What did IFS say about budgeting across social classes?
IFS said that the poorest 10th of the country spend 3x more of their budget than the richest 10th do on tier bills.
Why would you say the rising cost of living isn’t a main cause of poverty?
Many people are already trapped in poverty before this crisis and so their financial struggles are only deepened which therefore further the inequality and did not cause the inequality specifically.
What is educational attainment?
Educational attainment is the highest level of education that a person has completed.
How does having higher qualifications benefit a person?
Higher qualifications increase the chances of recieving higher pay in a job as it shows your capability and dedication.
What is difference in a graduate and non-graduate salary?
University graduates earn on average £10,000 more per year than a non-graduate.
What is the individualist view on the educational attainment gap?
Individualists argue that the educational attainment gap exists because it is the difference between people who try in school and those who present a lack of effort.
What is the collectivist view on the educational attainment gap?
Collectivists recognise that instead it is a lack of opportunity presented to people that helps to create the educational attainment gap.
Why is educational attainment so bad for wealth and income inequalities?
Educational attainment is both a cause and consequence of inequality and so creates a vicious cycle.
How may low earning families struggle to support their child in education?
Low income families may struggle to support their child induction for multiple reasons, for example, having to work multiple jobs or not having the education themselves.
Why may poorer student be deterred from going to university?
The high cost of university fees is a deterrent for many poor students.
Why is educational attainment such a significant factor?
Educational attainment is significant through its cause and effect cycle which traps parents and children and so on into poverty.
