Poverty Inequality And The Working Class - 976 Words

Inequality and poverty are thoroughly interconnected. Therefore, both the size and distribution of the economic pie are relevant in a discussion of poverty. Poverty, as measured by the Multidimensional Poverty Index (MPI), is comprised of three dimensions: health, education, and standard of living. According to this measure, approximately 1.7 billion people worldwide are â€Å"multidimensionally poor† (Hick, 2014, p. 125). While addressing poverty, it is also essential for one to examine the inequality that exists within society. Poverty, inequality, the working poor, and capitalism are all concepts that interrelate and affect one another. Poverty and the working class are results of the inequality that is produced by a capitalist society. Nevertheless, the connection of poverty and inequality is still largely debated. Economists often argue the relevance of including inequality in studies of poverty. Feldstein and Milanovic are examples of two economists who hold differing views of distributional matters. Feldstein argues that policy should address only poverty, disregarding inequality. To support his argument, Feldstein (1999) refers to the Pareto Principle which infers â€Å"that a change is good if it makes someone better off without making anyone else worse off† (p. 34). Therefore, Feldstein (1999) argues that an increase in higher incomes is beneficial, adding to the wealth of some without decreasing the wealth of others (p. 36-37). Finally, Feldstein (1999) infers that policyShow MoreRelatedHnc Poverty Essay1080 Words   |  5 Pagesread about poverty and what is meant by poverty. Included will be an exploration of the differences between | |absolute and relative poverty. You will also read about the relationship between poverty and inequality, covering the types of | |inequality between gender and class and also, the extent of poverty in the current British context. I will also cover causes of | |poverty and inequality using sociological theories. Ending this report you will read into the effects of poverty and inequalityRead MoreEconomic and Social Costs of Inequality in Australia785 Words   |  4 Pagessocial costs and benefits of inequality in distribution of income in Australia. Income inequality describes the extent to which income is distributed unevenly among residents of an area. High levels of inequality indicate that a small number of people receive most of the total income, and that most people receive only a small share of the total. There are many advantages and disadvantages associated with the inequitable distribution of income. Income inequality can lead to an increase in theRead MoreSocial Class in America1217 Words   |  5 Pagesare limited. Usually limited for those who belong to a lower social class. The main reason opportunities are limited are because of America’s social inequality. 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