Poverty - Chapter 9

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  • Created by: sammilaw
  • Created on: 16-03-16 09:44
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  • Poverty
    • Chapter 9
    • Absolute: when an individual's income is not sufficient to cover shelter, food and clothing costs
    • Relative: when someone is comparatively poor to someone else
    • Causes of poverty
      • Unemployment
      • Low wages
      • Sickness and disability
      • Old Age
      • Imperfect information
      • The Poverty trap
        • When individuals are no better off following a pay increase as tax paid increases and benefits are withdrawn
    • Government policy measures
      • National minimum wage
      • Tackling Unemployment
      • Training and Education
      • Exploiting 'trickle down' effects
        • Some argue that higher spending by the rich will stimulate the economy for the benefit of all
          • i.e. Cutting corporation tax and income tax rates will create incentives for entrepreneurs to create employment for the poor
      • Cutting the bottom rates of income tax

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