Income Inequality and Poverty

These flashcards cover key vocabulary and concepts related to income inequality and poverty as discussed in the lecture.

Income Inequality

The unequal distribution of income and opportunity between different groups in society.

Poverty Rate

The percentage of the population whose family income falls below an absolute level, known as the poverty line.

Poverty Line

Set by the federal government; it is three times the cost of providing an adequate diet, adjusted for family size and annually for inflation.

Quintile Ratio

A measure of income inequality calculated by dividing the income share of the highest quintile by the income share of the lowest quintile.

Utilitarianism

A political philosophy suggesting that the government should choose policies to maximize the total utility of everyone in society.

Economic Mobility

The movement of people among income classes, which can result from changes in income and economic status.

Minimum Wage

The lowest legal hourly wage that employers can pay workers, aimed at improving the earnings of low-wage workers.

In-Kind Transfers

Goods or services provided to the needy, such as food assistance or healthcare, rather than cash payments.

Welfare

Government programs designed to supplement the incomes of the needy, such as Temporary Assistance for Needy Families (TANF).

Negative Income Tax

A tax system that collects revenue from high-income households and gives subsidies to low-income households, providing a form of universal basic income.