Wealth and Income

Very brief, very basic, very simple outline of the following:

Difference between wealth and income.
Difference between relative and absolute poverty.
Causes of Wealth/Income Inequality
Lorenz Curve & Gini Co-Efficient

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  • Created on: 06-12-09 10:03
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Wealth and Income
The Difference Between Wealth and Income:
- Income is a flow of `factor incomes': wages, rent from owning land, interest from savings,
owning shares.
- Wealth is a stock of assets like property, savings, private pensions, ownership of land.
The Difference between Relative and Absolute Poverty:
- Absolute poverty occurs when individuals live below a basic standard of income and do
not have access to basic requirements in life such as food, clothing etc.
- Relative poverty is poverty in comparison to others' income (the national average income).
It means individuals are unable to participate in what is deemed normal or acceptable
standards of living.
Both
wealth and
income are
unequally distributed in the UK. 9 Million people receive income support, and a UN report cited UK as
having one of the highest levels of poverty for an industrialised nation!

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