Income inequality and poverty Chapter 20 Copyright © 2004 by South-Western,a division of Thomson Learning.

Chapter20 Income inequality and poverty 4 In this chapter you will: 4 examine the degree of economic inequality in our society 4 consider some problems that arise when measuring economic inequality 4 see how political philosophers view the government’s role redistribution income

4 Consider the various policies aimed at helping poor aimed at helping poor families escape poverty

Key concept 4 Poverty rate Poverty rate 4 poverty line poverty line 4 in-kind transfers in-kind transfers 4 life cycle life cycle 4 permanent income permanent income 4 utilitarianism utilitarianism 4 Utility Utility 4 liberalism liberalism 4 maximin criterion maximin criterion 4 libertarianism libertarianism 4 welfare welfare 4 negative income tax negative income tax

Poverty rate 4t4the percentage of the population whose family income falls below an absolute falls below an absolute level called the poverty line back

poverty line 4 an absolute level of income set by the federal government for each family size below which a family is deemed to be in poverty back

In-kind transfers 4 transfers to the poor given in the form of good and services rather than cash back

Life cycle 4 The regular pattern of income variation over a person’s life back

Permanent income 4 A person’s normal income Back

utilitarianism 4 The political philosophy according to which the government should choose policies to maximize the total utility of everyone in society back

utility 4 A measure of happiness or satisfaction back

liberalism 4 The political philosophy according to which the government should choose policies deemed to be just,as evaluated by an impartial observer behind a “veil of ignorance” back

Maximin criterion 4 The claim that the government should aim to maximize the well-being of the worse-off person in society back

libertarianism 4T4The political philosophy according to which the government should punish crimes and enforce voluntary agreements but not redistribution income back

welfare 4G4Government programs that supplement the incomes of the needy back

Negative income tax 4 A tax system that collects revenue form high-income households and gives transfers to low-income households back

结 束 谢 谢！！