Poverty and Inequality

Poverty and Inequality

1. Social Exclusion

   • Social Exclusion - homelessness
   • Economical Exclusion - unemployment
   • Political Exclusion - unable to vote
   • Cultural Exclusion - lack of leisure
   • Marginalization
     • Pushed aside in society

2. Poverty

   • Absolute
     • Income not enough to access necessities
     • Bare minimum level of survival
     • Below line = poor Above line = not poor
     • Advantage - clear poverty line
   • Relative
     • Cannot take part in normal activities due to lack of money
     • Where people stand relative to others in society
     • People expect more than avoiding starvation even if items owned by most are not necessary
     • Disadvantage - unclear where the line should be drawn

3. Life Chances

   • Opportunities for achieving living standards
   • Weber - affected by class position
   • More capital = better life chances
     • Economic - wealth, money and possessions
     • Cultural - classes have different tastes
     • Human - skills and qualifications
     • Social - networks and levels of trust

4. Income

   • Money received with given time
   • Original = from employment etc Disposable = original minus taxes etc
   • Statistics
     • British Household Panel -doesn't cover homeless
     • New Earnings - those earning below income tax threshold not included
     • Time of sample - income can change very quickly
   • Inequality
     • Ageing population - more pensions so more low incomes
     • Benefits - more benefits so more low incomes
     • Tax cuts - beneficial to high earners
     • Low minimum wage
     • Labour market - increasing gap between work rich and work less households

5. Wealth

   • Possessions held at given time that can be turned into cash to benefit owner
   • Linked to status, power and prestige
   • Often inherited e.g. Royal family
   • Trends
     • Increased ownership of consumer goods
     • People become wealthier as they get older
   • Statistics
     • Surveys - people not willing to reveal details
     • Rich lists - time consuming and complex, relying on estimates
     • Inland Revenue - calculates value of estate but many distribute assets while alive

6. Underclass

   • Suffer economic disadvantage and material hardship
   • Life chances are worse
   • Children are socialised into this life so values are passed down
   • Field - recruits from three main groups
     • Long term unemployed, lone parent families and pensioners
   • Murray - New Rabble
     • Distinctive and unattractive values, living off crime and benefits
     • Irresponsible parents and poor role models
     • Low skilled, poorly educated, unwilling to get a job
   • Concept assumes people are poor through their own fault