Income Inequality, Poverty, Discrimination - Lesson

Income Inequality, Poverty, Discrimination

Open Ended

What is poverty line?

Poverty line

Poverty line is

• an absolute level of income

• set by the federal government (3 times the cost of an adequate meal)

• for each family size

• below which a family is deemed to be in poverty.

It is adjusted every year to account for changes in the level of prices.

Poverty line computing

In the US, an adequate meal costs $5.57.

1 day we need to eat 3 times => $16.7/day

365 days/year => $16.7 * 365 = $6,104.5/year for 1 person

Family with 4 members => $6104.5 * 4 = $24,418

Therefore, the poverty line = $24,418

Open Ended

What is poverty rate?

-> Make sure to prevent any duplication when counting
the number of people who are in poverty.

You have a high-income level, but your other family members have a low-income level.
-> Average
-> You are still considered as poor.

Poverty is correlated with

Age

These effects also work together:
Almost half
+ the children (age)
+ in black and Hispanic (race)
+ female-headed households (family composition)
live in poverty.

Race

Family Composition

Open Ended

Describe three (03) potential problems
in interpreting the measured poverty rate.

Open Ended

In-kind Transfers

Open Ended

The economic life cycle

Open Ended

Permanent Income

Open Ended

Economic Mobility

Economic Mobility

the movement of people between income classes.

• Some reflect transitory variation in income.

• Some reflect more persistent changes in income.

• Many of those below the poverty line are there only temporarily.

Fill in the Blanks

(03) Political philosophies of redistributing income

The first one is

Fill in the Blanks

(03) Political philosophies of redistributing income

The second one is

Fill in the Blanks

(03) Political philosophies of redistributing income

The third one is

Fill in the Blanks

The founders of utilitarianism are

Fill in the Blanks

Utility is the measurement of ___ or ___.

Open Ended

Utilitarianism

Fill in the Blanks

Utilitarianism is based on what assumptions?

Open Ended

Diminishing marginal utility

Open Ended

Why does utilitarians reject complete equalization of incomes?

(The drawback (-) of utilitarianism in income redistribution)

Fill in the Blanks

The founders of liberalism is

Open Ended

Liberalism

Open Ended

[Liberalism]

maximin criterion

Fill in the Blanks

From the view of a Liberalist, income distribution is a form of

.

Open Ended

[Liberalism]

social insurance

Open Ended

Libertarianism

Fill in the Blanks

Libertarianism is advocated by

Multiple Choice

Libertarians focus on the process not outcome.

• True

• False

Multiple Choice

Robert Nozick argues that economic justice would result

if society chose a set of rules for the redistribution of income from behind a "veil of ignorance" and

he argues that the set of rules would be the maximin criterion.

• True

• False

Multiple Select

Which political philosophy suggest that income should be redistributed across the population?

• Utilitarianism

• Liberalism

• Libertarianism

Fill in the Blanks

Policies to reduce poverty

Number 1 of 5 is

Open Ended

(2) arguments for minimum-wage laws

Open Ended

(2) arguments against minimum-wage laws

Fill in the Blanks

[2 arguments against minimum-wage laws]

1. 1. In the long run, demand for unskilled labor is likely elastic, so minimum wage causes

   among the unskilled.

Fill in the Blanks

[2 arguments against minimum-wage laws]

1. 2. Minimum wage workers are more likely to be

   than low-income adult workers.

Fill in the Blanks

Policies to reduce poverty

Number 2 of 5 is

Open Ended

welfare

Fill in the Blanks

Name 2 welfare programs

The first one is

Fill in the Blanks

Name 2 welfare programs

The second one is

Open Ended

criticism of welfare programs

Open Ended

Supporters of welfare system say that

Fill in the Blanks

Policies to reduce poverty

Number 3 of 5 is

Open Ended

Negative income tax

Open Ended

[Negative income tax]

Pro & Con

Fill in the Blanks

Policies to reduce poverty

Number 4 of 5 is

Fill in the Blanks

In-kind transfers refer to

provided to the needy

Fill in the Blanks

The government gives poor families food through the

Program.

Fill in the Blanks

The government gives many poor people healthcare through a program called

.

Open Ended

Advocates of in-kind transfers

Open Ended

Critics of in-kind transfers

Fill in the Blanks

Policies to reduce poverty

Number 5 of 5 is

Fill in the Blanks

[Anti-poverty programs and Work incentives]

Assistance from anti-poverty programs

as income rises.

What is its result?

Fill in the Blanks

[Anti-poverty programs and Work incentives]

Anti-poverty policies therefore ___ the poor from
______ on their own.

Fill in the Blanks

[Anti-poverty programs and Work incentives]

The only possible solution to this problem is

.

What does that system require?