Wealth Distribution

Wealth Distribution

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  • Created by: Lollipop
  • Created on: 21-06-12 13:30

Wealth is distributed very unequally in Britain because:

  • Long established inequalities of wealth have never been successfully changed - loopholes enable the rich to avoid taxation
  • Over time houses, land, shares and fine art tend to increase in value - the gap between those owning such property and those without widens
  • In recent years, globalisation has led super-rich non-natives to live in Britain
  • The rewards available in modern sport, entertainment and the financial services industries have led some to accumulate fortunes
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Disturbtion of Income

Wealth is distributed unequally and therefore income from savings and investments will be distributed unequally

Occupations do not offer the same level of income reasons:

  • Market forces operate - those who have skill for which there is a high demand are in a strong bargaining position. Those lacking skill or whose skills are not in demand are in a weak bargaining position
  • Different principles apply to senior executives and to ordinary employees. The pay of the former must be high to 'attract the best talent' and the pay of the latter must be low so that the workers 'do not price themselves out of a job'
  • The high status and power of some occupations eg. doctors gives them an advantage when bargaining pay

Some people are dependent on benefits paid by the state - these tend to be low

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Family and Inequality

Some families have wealth which can:

  • be inherited directly by the children
  • purchase high quality schooling, either directly by paying fees of by purchasing a house in the catchment area of a good state school
  • fund social activities for their children which allow them to meet with the 'right kind of people'

Many of the children of wealth parents thus grow up to occupy the privileged positions which their parents held. The less wealthy a family, the less it is able to insulate their children's future from the effects of external circumstances

These incude the lack of apporpriate job opportunities for people with less good qualifications

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