1. Inequality

2. Definitions Inequality  This is where income is distributed unevenly in society. Equality  This is where income is distributed evenly in society.

3. Inequality Lorenz Curve Lorenz Curve Drawing Activity Davos 2013: the five key datasets | Business | guardian.co.uk

4. Inequality Trends Inequality trends

5. The Gini coefficient measures the ratio of the area between the Lorenz curve and the line of perfect equality over a period of time. This diagram shows that over the last 40 years, the income gap has fluctuated but the main trend is that income inequality has risen in the UK and wealth has been relocated to the richer households which is clarified by the table on the next slide. Gini Coefficient Economist article.

6. Absolute and Relative Poverty How would a more even distribution of Income affect UK Economic Performance ET JAN 2006.pdf Discuss How would a more even distribution of Income affect UK Economic Performance ET JAN 2006.pdf UK Poverty Economics Today Sept 2008.pdf – Discuss Absolute and Relative Poverty

7. Causes of Poverty in Developing Countries. Natural – Floods – Famine – Earthquakes – Volcanic Eruption – Few Natural resources – Deserts – Lack of Water Man Made – Political Strife – Forced Migration – Unemployment – Structure Agricultural based – Overpopulation – Corruption – Government Policies – Environmental Degradation – Exploitation by TNC – Trade Barriers – Inappropriate advice IMF World Bank

8. Consequences of Poverty the very poor will have no collateral and so will be unable to start their own business absolute poverty could remain high in countries where inequality is high those on low incomes will have a low marginal propensity to save, so limiting funds available for investment, while those on high incomes may spend a large amount of their incomes on imported goods or may transfer their incomes to other countries (capital flight) there may be socially undesirable consequences of inequality, such as an increase in crime rate Poverty trap remains stays stuck in the cycle.

9. Developed Countries Causes of Poverty Education (Take of higher education places) Low wages Lack of Skills Unemployment (insufficient apprenticeship opportunities) Complex Benefit Systems Gov Policy Regional Policy grants Trade Barriers USA Break up of Family Units. Corrupt Institutions Loose pensions Longer Life Spans

10. Kuznets http://en.wikipedia.org/wiki/Kuznets_curve

11. Causes and consequences of Inequality UK Poverty Economics Today Sept 2008.pdf Use Article UK Poverty Economics Today Sept 2008.pdf inequality article.doc Wealth[1].pdf – Consequences – Look at Jan 2010 lab markets – development question re china development question re china

12. Solutions How would a more even distribution of Income affect UK Economic Performance ET JAN 2006.pdfHow would a more even distribution of Income affect UK Economic Performance ET JAN 2006.pdf use article Wealth