Zusammenfassung der Ressource
Inequalities in the
Distribution of
Income and Wealth
- INCOME= a flow of earnings to a factor of
production over a period of time, e.g. wages
(hourly/weekly) or salaries (monthly/yearly)
- Someone with a particular sporting
talent, e.g. a racing cyclist, could
command a high income
- WEALTH= a stock of owned
assets, e.g. housing property
or a portfolio of shares
- The main source of wealth
in the UK is still through
inheritance
- In a free market economy, an individual's ability to consume goods and services depends on INCOME and WEALTH
- An unequal distribution of income and wealth may result in an unsatisfactory allocation of resources, this may be judged as unfair or inequitable
- The relatively poor don't have access to the range of goods and services consumed by 'average' citizens
- High inequality may also lead to alienation and encourage crime with wider negative consequences for society
- A lack of fairness or equity in the distribution of income and wealth can be seen as a failure in the free market
- The government aims to close the gap between rich and poor and make things more equal
- When discussing inequality and
poverty we can't escape making
value judgements and normative
statements
- What constitutes 'unacceptable'
distribution of income and what the
governement should do about this
is a political issue; people will
have varying views
- There is evidence however that high and rising levels
of inequality of income and wealth can lead to negative
social consequences i.e. external costs that affect the
whole of society