tailieunhanh - Lecture Essentials of economics (3/e): Web chapter B - Brue, McConnell, Flynn

Web Chapter B: Income inequality and poverty. In this chapter we will explore income inequality and actions that can be taken by government to try to correct income inequality, using the Lorenz curve and Gini ratio to help with this evaluation. | Web Chapter B Income Inequality and Poverty McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved In this chapter we will explore income inequality and actions that can be taken by government to try to correct income inequality, using the Lorenz curve and Gini ratio to help with this evaluation. We will then define poverty and look at how it affects different groups. We will also discuss government programs to aid families in poverty. Lastly we analyze discrimination and how this impacts wages. Facts about Income Inequality Average household income $66,424 in 2008 Among the highest in the world Distribution by quintiles Income mobility People change quintiles Government redistribution Taxes and transfers WCB- Income inequality is a continuing concern in much of the world. The classic case of the “haves” versus the “have-nots” has caused major disruptions in society. How to correct the disparity is of great debate among many. The United States’ average household income of $66,424 is among the highest in the world, but the distribution of income among the different groups varies with the top 20 percent of households earning more than 50 percent of total income. Over an individual’s lifetime, the individual or household may change quintiles as income changes. The government also attempts to redistribute the income through taxes and transfers, such as welfare and Social Security. Facts about Income Inequality (1) Personal Income Category (2) Percentage of All Households in This Category Under $10,000 $10,000–$14,999 $15,000–$24,999 $25,000–$34,999 $35,000–$49,999 $50,000–$74,999 $75,000–$99,999 $100,000 and above Source: Bureau of the Census, . Numbers do not add up to 100 percent due to rounding. WCB- In this table, we can see the distribution of income among households in 2009. Note that approximately 25 percent of all households have an income of less than . | Web Chapter B Income Inequality and Poverty McGraw-Hill/Irwin Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved In this chapter we will explore income inequality and actions that can be taken by government to try to correct income inequality, using the Lorenz curve and Gini ratio to help with this evaluation. We will then define poverty and look at how it affects different groups. We will also discuss government programs to aid families in poverty. Lastly we analyze discrimination and how this impacts wages. Facts about Income Inequality Average household income $66,424 in 2008 Among the highest in the world Distribution by quintiles Income mobility People change quintiles Government redistribution Taxes and transfers WCB- Income inequality is a continuing concern in much of the world. The classic case of the “haves” versus the “have-nots” has caused major disruptions in society. How to correct the disparity is of great debate among many. The United .