| How can Governments Intervening in Benefits help Tackle Poverty? | -Benefits are used to Redistribute Income. Tax Revenue, from Higher Incomes, are used to pay the Benefits for those that need them
-Means-tested benefits can though Contribute to the Poverty Trap
-Governments therefore may:
1. Remove Means Tested Benefits, encouraging more people to work. But those that can't work may be just Utterly Screwed
2. Change Mean-Tested Benefits --> Universal Benefits, but the cost of them may lead to those on Low Incomes are Taxed More |
| How can Governments Intervening via State Provision help Tackle Poverty | -State Provided Services, like Healthcare and Education, reduce Inequalities caused by Differences in Income. Those on Lower Incomes can access the same Healthcare as someone on Higher Incomes
-State Provided Goods also Redistribute Income because the Money needed to fund them comes from Taxing those with Higher Incomes |
| How can the Government intervene via Progressive Taxation help tackle Poverty | -PT means a Bigger % of tax comes from Workers with Higher Incomes than those with Lower Incomes. This Reduces the Difference between People's Disposable Income, reducing Relative Poverty
-PT though can Contribute to the Poverty Trap. Furthermore, if High Income Earners are Taxed too much, they move to another Nation where they're taxed less. This results in a Loss of Labour and Money from the Economy |
| How can the Government Intervene via Economic Growth help tackle Poverty | -A Very Efficient Way of doing so, as Jobs are Provided and Unemployment is Reduced. Higher Wages furthermore are usually Provided leading to Greater Tax Revenue, helping fund their State Provision
-But it can be hard to achieve, as it can lead to Large Inequalities in Income. It may benefit only the Rich, or create Sustainable Problems with Resources, which causes Future Inequality and Poverty for the Future |
| How can the Government Intervene via the National Minimum Wage help tackle Poverty | -If set at a Reasonable Level, it can help Reduce Poverty amongst the lowest-paid workers, Provide an Incentive to work, and help those on Lower Incomes afford a Reasonable Standard of Living.
-It can also Counteract Monopsony Power, which is another Cause of Poverty
-But the NMW may affect Employment Levels, and thus a Rise in Poverty. Furthermore, an NMW won't Factor in the Cost of Living depending on where people live, so the Standard of Living for those on the NWM will Vary depending on where they live.
-Those unemployed will be Forgotten! |
