Economics
Published on Nov 19, 2015
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PRESENTATION OUTLINE
'1.3 billion people in the world live in extreme poverty, 22 percent of the worlds population is poor'
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Income and Wealth Distribution
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Poverty
Relative poverty
Absolute Poverty
Poverty Trap
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Absolute poverty - a situation where individuals do not have access to the basic requirements of life - food, shelter, clothing
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Relative Poverty - a situation where individuals are excluded from being able to take part in what are considered the normal, acceptable standards of living in a society,
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Difficult to draw a line between those in poverty and those outside.
What do we mean by food, clothing and shelter?
Is living in a tent a form of shelter?
Does having some clothing mean we are not experiencing absolute poverty?
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Poverty
In the UK - low income threshold - 60% of the medium income
This means 12.5 million people living below this level - are in poverty?
Links between 'low pay/poverty line and health, crime, education levels, social problems.
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What is the difference between absolute and relative poverty, provide examples related to Japan.
Under what circumstances might someone in Japan be living in conditions of absolute poverty
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Lorenz Curve
Shows the proportion of national income earned by a certain percentage of the population
For example - what percentage of national income is earnt by the top 10 percent of the population.
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Wealth
A STOCK as opposed to income which represents a FLOW
Measures wealth at a point in time
Wealth can be measured by reference to type of asset representing the stock
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Types of Asset
Shares
Houses
Bank deposits
Land
Machinery and equipment
Gold
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Income Distribution
Income represents a FLOW
In the form of:
Wages
Rents
Dividends
Interest
Pensions
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Taxation - costs
Market Distortion
Administrative Costs
Can be avoided
May not be targeted at those who need the help
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Benefits
Reduction in poverty levels
Can be used to provide incentives
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Legislation
Mi minimum wage - target those on 'low wages' but what is the right level?
Discrimination - reducing the impact of racial, sexual and disabled incidences of discrimination
Regulation - employment related regulation
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What are the problems facing the government in trying to reduce poverty in Japan?
How could the Government of Japan reduce the level of poverty in Japan?
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