Wealth Inequality Essay Flashcards
Intro
Peter Townsend defined poverty as lacking the resources for basic needs such as social participation which others take for granted. It will be argued there are many causes of income & wealth inequality. This essay will discuss education, low pay & unemployment
Unemployment - Point
Many would argue that unemployment is a key contributing factor to poverty
Unemployment - Explain
To be unemployed means to not be working & therefore not earning money for basics you need to survive
It also means you may not be able to take advantage of opportunities to gain skills required to gain employment
Unemployment - Example
A JFR report shows households where no one is in work have a poverty rate of over 50% compared to households where someone works full time having a poverty rate of 10%
Unemployment- Analysis
The higher poverty rate for these households may be because there is no one working increasing their risk of poverty
Unemployment - Rebuttal
If you’re unemployed you are more likely to be dependent on benefits which will make you more vulnerable to poverty
Unemployment - Rebuttal Explain
In the UK benefits are generally set as the minimum someone needs to survive & the UK has some of the least generous benefits in Europe
The amount of support someone gets & who gets them is set by the government
Unemployment - Rebuttal Example
According to JFR in 2022 this is one of the reasons why those out of work & on benefits such as Universal Credit have a poverty rate of 54% in contrast to the overall working age poverty rate of 20% for the UK
Unemployment - Rebuttal Analysis
When you consider poverty has risen in the last 10 years while benefits have become less supportive, it’s clear that being on benefits puts you at risk of government changes & poverty
Unemployment - Conclusion
In conclusion, those who are unemployed and tend to rely on benefits are unable to pay for basic essentials due to how little they receive making it difficult for them to get a job and escape the poverty cycle
Low Pay - Point
Low pay is a leading cause of income & wealth inequality
Low Pay - Explain
Even people who have a job aren’t always free from poverty
Even in households where adults are in work, they may not be able to afford basic essentials because wages are far too low & are not keeping up with inflation rates
Low Pay - Example
Around 68% of working-age adults in poverty live in a household where at least one adult is in work
The living wage set by the government is £9.50 p/h & it’s stated this is what an individual needs to be paid to not be in poverty
Low Pay - Analysis
Working poor households is a major issue, younger people & women are more likely to be working on the living wage which increases their risk of being in poverty
Low Pay - Rebuttal
However, the living wage that has been set by the government is not high enough & doesn’t meet the recommended rate of pay set by the Living Wage Foundation
Low Pay - Rebuttal Explain
The Living Wage Foundation are an independent organisation that recommends pay rates every year depending on the cost of living
Employers pay this to give employees a fair deal which gives them a good reputation
Low Pay - Rebuttal Example
The Living Wage Foundation state in 2022 the living wage should be £9.90 p/h & this is expected to rise due to the cost of living crisis
Low Pay - Rebuttal Analysis
The government are failing to keep people out of poverty
Low Pay - Conclusion
Low pay is a significant cause of income & wealth inequality due to the government living wage being too low meaning too many people who are working are poor
The cost of living crisis is making those working on low wage more susceptible to poverty & the government should increase wages to meet the living wage foundations rate of pay
Educational Attainment - Point
The educational attainment of an individual is a good indicator as to the likelihood that someone may be in poverty
Educational Attainment - Explain
Those with a higher level of qualifications will have more skills & thus be more employable
It is also likely that they will have skills & knowledge to enter higher paid professions
Educational Attainment - Example
The JFR found the poverty rate was lowest for those qualified to a degree level (13%) compared to those with no qualifications who had a poverty rate of 44%
Educational Attainment - Analysis
This contrast between level of educational attainment & poverty is quite stark & suggests that it may be a significant cause of poverty
Educational Attainment - Rebuttal Point
This makes access to education a key factor to consider but this might be harder for people in some parts of the UK
Educational Attainment- Rebuttal Explain
The area of the UK you live in can increase the likelihood of being able to afford to go to university & reduce your risk of poverty
This is because university is free for Scottish students but English students have to pay tuition fees
Educational Attainment- Rebuttal Example
According to UCAS English students can pay up to £9,250 a year to go to university in 2022 in contrast to most Scottish students who will not generally have to pay to go to uni
Educational Attainment - Rebuttal Analysis
This shows that university fees are restricting those in poverty to go to university
Educational Attainment - Conclusion
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
Overall Conclusion
In conclusion, educational attainment, low pay & unemployment are all key factors to wealth & income inequalities however low pay is the main reason due to the fact that the minimum wage is not enough to live on nor is it increasing with current inflation rates. The minimum wage is currently £9.18 but the Living Wage Foundation states the amount a person needs per hour to stay out of poverty is £9.90. In order to try and tackle the amount of people in poverty, the government should start by raising the minimum wage to meet the requirements needed to survive.
