Wealth & inequality

Question 1

what is meant by the term social exclusion?

Answer 1

not being able to fit into the rest of normal society. This results in marginalisation and can lead to a spiral of further poverty

Question 2

Define wealth.

Answer 2

wealth is a stock of financial & real assets.

• property
• savings
• land
• pension

Question 3

What are the issues with property?
What are the problems with cash?
any issues with pensions?

Answer 3

1. you can sell your house for money but then you are homeless
2. many people have a lot of wealth but no physical cash
3. are a type of saving but are needed for income later on.

Question 4

What is marketable wealth?

Answer 4

= Any type of asset that that can be sold
and its value realised.
-Land, Shares, Savings, Cars, house (mortgage)

Question 5

Where does wealth come from?

Answer 5

Inheritance
Saving
Entrepreneurship (Working Hard!)
Chance (Lottery)

Question 6

how to measure wealth.

Answer 6

A. inheritance tax = how much you inherit after tax
B. look at how much money someone had after death
C. survey asking how much money someone has

• poorer people are excluded from inheritance tax
• people are reluctant to tell
• wealth can be passed on before death

Question 7

what is the Marxist theory on inequality?

Answer 7

Inequality is caused by capitalism. The bourgeoisie exploit the proletariat.

Question 8

What is the functionalist view on inequality?

Answer 8

Inequality serves a function, gives the poor hope and allows people to be at the top.

Question 9

And the Weberian view?

Answer 9

Competition means that not everyone can be wealthy, the group who end up at the top will try to stay there.

Question 10

Kersley and Shaheen (2014)

Answer 10

• Globalisation
• Technology
• Financialisation
• Trade Unions
• Government Redistribution
• Political Capture

Question 11

wealth divide facts.

Answer 11

1. top 20% of households in the UK hold 63% of wealth.

2. in the top 1% of households, 13% of the countries wealth is being held.