Features of social inequality

What is wealth?

Ownership of valuable assets that can generate income (properties, savings, investments, art, jewellery)

How unequal is wealth in the UK?

The richest 20% own around 60% of wealth, while ths poorest 20% own less than 1%. Wealth inequality is greater than income inequality

What is income?

Regular money received from wages, benefits, pensions, interest, and dividends

What shows income inequality in the UK?

CEOs can earn around 100x the average worker’s pay; a company boss can earn in 3 days what a nurse earns in a year

What is global inequality?

Inequality has increased since the 1980s. The richest 1% own around 45% of global wealth, while 64% of adults have under $10,000

Where has inequality increased most since 1980, and why?

North America, China, India, and Russia, partly due to reduced government regulation. The US has the highest inequality among industrial nations

What is meritocracy?

The idea that modern societies should reward people according to talent and effort, rather than social background

Why does welfare exist in a meritocratic society?

The reduce extreme inequality and ensure everyone has a minimum standard of living

What is a social democracy?

An approach influenced by Keynes and Beveridge that supports government intervention, redistribution, and welfare to create greater equality

What does social democracy aim to achieve?

Social justice, equal opportunities, less wasted talent, social cohesion, and stability

Why do social democrats criticise the free market?

They argue it can create inequality and economic crises, concentrate power and reward people according to market forces rather than moral fairness

What is the New Right’s view of the economy?

Influenced by Adam Smith and Milton Friedman, it supports free markets and minimal state intervention, arguing intervention causes inefficiency, high taxes and unemployment

What was the New Right approach to welfare in the UK?

Conservative governments from 1979 reduced state spending and favoured a residual model (minimal support for deserving poor, greater reliance on private, voluntary, and family welfare)

What is absolute poverty?

A lack of basic needs (food, shelter, clothing)

Particularly associated with developing countries, can be difficult to define universally

What is relative poverty?

Being significantly below the average standard of living in your society (highlights inequality and social exlclusion)

What are the main arguments about relative poverty?

Critics say it can ignore life-threatening deprivation

Supporters argue it reveals injustice and marginalisation in wealthy societies

What are the main explanations for poverty?

Culture of poverty: hopelessness, fatalism, lack of motivation

Structural causes: low wages, poor education, unemployment, discrimination, economic change (deindustrialisation)

What is the dabte over welfare dependence?

Some argue generous benefits discourage work; others argue benefits are essential for survival, rather than providing luxury

What are the consequences and cycle of poverty?

Poverty causes poor health, low self-esteem and exclusion, while society faces crime and higher costs

The cycle is low income → welfare dependence → difficulty finding work → continued poverty

What is the difference between universal and selective welfare?

Universal: available broadly to everyone who meets the conditions

Selective: targeted at those judged to be most in need

What are the advantages and disadvantages of universal and selective welfare?

Universal: less stigma and easier access, but more expensive

Selective: cheaper and targets resources, but can cause stigma, discourage claims, and leave some people unsupported