Causes Of Inqualities In Wealth

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Causes of inequalities in wealth Income and wealth Income is the money a person earns in a given period. Income is in the form of wages or salaries from employment, as well as interest from savings, dividends from shares, profits from business, and rent from land and property. Wealth is made up of the assets that are owned by people living in a country. Wealth is in the value of a house, the value of a pension, shares and savings. How wealth is held in the UK: • Housing • State pensions • Private pensions • Savings The main sources of income in the UK: • Employment • Pensions • Benefits • Self-employed income • Rent, dividends, interest • Others How wealthy is the UK? The total value of all goods produced and services provided in a country in one year is called the Gross Domestic Product (GDP). In order to compare different countries, the GDP is divided by the number of people living in the country at the time. This is the GDP per head. In 2003, the UK’s GDP per head was $25,500 (£17,340). This makes the UK a very wealthy country. It is ranked 19th of 29 countries in the Organisation for Economic Co-operation and Development (OECD) and 24th in the world overall (out of 192 countries). Poverty in the UK Absolute poverty is based on subsistence, a minimum standard needed to live. UNICEF describe a person as living in absolute poverty if they are deprived of two or more of the seven basic needs: clean water, sanitation, shelter, education, information, food and health. If the household or individual does not have access to a particular basic need, they are defined as ‘deprived’. Relative poverty is when people do not get access to products and services that society considers to be necessary for basic living. This type of poverty varies significantly as society changes. How do we measure poverty in the UK? In
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