Understanding Economic Inequality: How We Force the Poor to Pay More & How We Rely on Welfare

Flashcards reviewing key concepts and details from the lecture on economic inequality and welfare systems.

What are two systemic problems highlighted in the lecture regarding economic inequality?

The poor being forced to pay more and the failure of welfare systems.

What is economic inequality about, according to the lecture?

It's about a gap in opportunity, access to resources, and treatment within economic systems, not just income.

How do financial burdens affect the poor?

The poor often pay more for basic services due to lack of access to traditional financial tools, leading to cycles of debt.

What are payday loans and why are they problematic?

Payday loans charge high interest rates and create long-term debt cycles, disproportionately affecting low-income individuals.

How do corporations take advantage of low-income individuals?

Corporations profit from financial struggles by offering expensive payday loans and services like check-cashing.

What do overdraft fees represent for the poor?

Overdraft fees act as a hidden tax on poverty, penalizing those who are already struggling financially.

What does the term 'predatory inclusion' refer to?

Predatory inclusion describes situations where low-income and minority individuals are included in financial systems but under unfair terms.

What significant change in poverty levels was observed during the COVID-19 pandemic?

Poverty rates dropped due to the effectiveness of expanded welfare programs.

What role did expanded unemployment benefits play during the pandemic?

They provided crucial financial support, helping people stay afloat while looking for work.

What is welfare avoidance?

Welfare avoidance occurs when eligible families do not apply for welfare due to stigma or complex processes.

How do middle- and upper-class families benefit from welfare?

They receive significant government assistance, such as mortgage interest deductions, that often exceeds aid for the poor.

What is a common myth about poor people and taxes?

The myth is that poor people don’t pay taxes; in reality, they pay significant amounts in various taxes.

How do welfare programs exhibit structural bias?

They often create barriers that prevent the poorest individuals from accessing assistance, favoring those with some financial stability.

What disparity exists in government aid?

Government aid often disproportionately benefits middle- and upper-income families rather than those in need.

What impact does race have on perceptions of welfare?

Welfare is often racially perceived, associating it with Black and minority communities despite most recipients being white.

What is structural racism and how does it impact poverty?

Structural racism refers to systemic inequalities that hinder minority communities' economic mobility.

How do welfare and tax breaks differ in perception and distribution?

Welfare is seen as a handout while tax breaks are viewed as rewards, leading to stigmatization of those needing welfare.

What does the concept of a broken social contract imply?

It suggests that the mutual responsibilities between citizens and the government have collapsed, leading to inequality.