Income Inequality and Poverty

These flashcards cover key concepts related to income inequality and poverty, including definitions, statistics, and relevant economic terms.

Average Household Income

$68,426 in 2014; ranked among the highest in the world.

Income Mobility

The ability for individuals to change their income quintiles over time.

Quintiles

Divisions of the population into five equal groups based on income distribution.

Gini Ratio

A measure of income inequality that represents the area between the Lorenz curve and the line of perfect equality.

Poverty Definition for 2016

Single person < $12,228; Family of 4 < $24,536; Family of 6 < $32,928.

Percentage of Americans in Poverty (2016)

40.6 million Americans were living in poverty, approximately 12.7 percent.

Factors Causing Income Inequality

Includes education and training, discrimination, preferences, risks, market power, and luck.

Income Inequality Trends since 1970

Characterized by rising inequality due to higher demand for skilled workers and other economic changes.

Entitlement Programs

Aid programs where all eligible recipients receive assistance, such as Social Security and Medicare.

Public Assistance Programs

Welfare programs like TANF and SNAP designed to provide financial aid to low-income individuals and families.