Sociology - Wealth, Poverty and Work - Defining and Measuring Wealth

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Defining and Measuring - Wealth and Income:

Defining Income:

Income is the inwards flow of money, it is not the same as wages and includes other sources of money like;

  • Benefits

  • Investments

  • Self employment

  • Pensions

Earned income:Any money received for labour, wages/self employment etc

Unearned income: Money gained from elsewhere (bank investments, benefits, pensions)

  • Original income: Income from private sources, not from the state etc (wages, investments, gifts etc)

  • Gross income: A measure of all income sources before tax reductions and national insurances

  • Disposable incomes: A measure of what's left from gross income after reductions

  • Post-tax income: (We still have to pay taxes on food and goods we buy, VAT, council tax etc) A measure of income after these taxes.

  • Final income: After everything is reduced it adds on the benefits you receive that may not be in cash, E.g. healthcare, education etc

Measuring Income:

Every year the government ask for Tax returns which is where everyone should submit what they

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