Poverty & Inequality Lesson

Recap on Human Rights Abuses

Wealth Distribution: The top 1% controls 46% of the world's wealth according to Oxfam.
Implications: Despite controlling a significant portion of wealth, this 1% continues to seek more, indicating growing disparities.

GDP: Total incomes earned by residents and businesses, inclusive of foreign investments.
GDP per capita: Provides clearer productivity picture by dividing total GDP by the population.
GNP: Measures average achievements in human development, such as life expectancy and living standards.
GNI: Overall size of the economy, summing all goods produced and services provided.
HDI: Value of all production means owned by residents in a specific period.

F1: Understand key features of global inequality including income, wealth, education, health, and gender.
F2: Differentiate between absolute and relative poverty.
F3: Analyze impacts of poverty using country-specific evidence/examples.
F4: Identify how global inequality is measured.
F5: Learn terminology related to global inequality and its implications.
F6: Analyze measurements of global inequality through evidence/examples from various countries.

Multimedia Insight: Take a short clip showing the life of a woman in Los Angeles dealing with poverty.
Discussion Points: Reflect on the shocking aspects of poverty in a wealthy nation like the USA.

Relative Poverty: Defined by an individual’s income being compared to others in their vicinity; varies by country.
Absolute Poverty: Defined by a fixed level regardless of location; global standard set by the World Bank at $2.15 per day.
UK Measurement: Relative poverty defined as income below 60% of median income.

Neoliberal Critique: Relative poverty directly linked to inequality; number of individuals can increase as incomes rise for the wealthy.

Poverty transcends income; includes lack of participation in society.
Associated Issues: Lower educational attainment, poor diets, reduced life expectancy, and disengagement from democratic processes.
Marginalization leads to multiple deprivations affecting overall quality of life.

Characteristics: Absence of essentials such as sufficient food and shelter; linked to higher mortality rates due to starvation and disease.
Global Standard: Extreme poverty defined as earning less than $2.15 daily, starkly different from relative poverty measures in developed nations.

Definition and Forms: Discuss what inequality means and examine different measurement methodologies.

Concept: As nations develop, inequality tends to rise then fall, demonstrating an inverted U shape.
Economic Context: In poorer societies, incomes are generally closer, while industrial advances create income disparities.

Policies leading to increased inequality over 40 years include reduced tax rates and privatisation of industries, weakening social safety nets and unions.

Gini Coefficient: Ranges from 0 (perfect equality) to 1 (perfect inequality); can be depicted as percentages.
Palma Ratio: Compares income shares between different groups, particularly the top 10% to the bottom 40%.

International Insights: A Gini coefficient over 0.4 is termed as severe inequality; upper middle-income countries often face the highest inequities.
Regional Analysis: The most unequal areas are Africa and Latin America, with the USA being the most unequal among developed nations.

Dimensions Measured: Health (life expectancy), Knowledge (educational attainment), and Living Standards (GNI per capita).
Components: Each dimension contributes to the overall HDI score, informing on a country's development status.

Thought Provocation: Is inequality significant within a single nation? Discuss and analyze.

Reference: Insights from Wilkinson and Pickett on how equality benefits society.
Key Thesis: A call for rethinking political ideologies surrounding equality.

Spirit Level TED Talk Exploration: Identify inequality problems proposed by Richard Wilkinson, aspects of life affected, and suggested solutions.