In this study, a direct correlation between personal life quality measurement and the Gini coefficient is expected to be found. Gini coefficient measures degree of equality in a country’s income distribution. It was first defined by Italian statistician Corrado Gini (1884-1965). The Gini coefficient ranges between 0 and 100. Where 0 represents completely equality while 100 represents completely inequality. The expectation of this study is based on the fact that when the Gini coefficient is low, which means social wealth is distributed more equality within one country compared to the other countries which have higher Gini coefficient. More equal social and wealth distribution is more likely to cause a higher quality of life. In this study, we will look at seven life quality measurements: real personal disposable income, average real wage, unemployment rate, life expectancy, infant mortality rate, adult literacy rate political stability rating, risk of armed conflict, and hope to find correlations between those variables and Gini coefficient. This research is important for many reasons. Poverty is a global issue and is being aggravated by inequality. A study found
Over the past few decades, the economics move upward and downward of the business cycle for most countries. In a strong economy, there tends to be low unemployment rates, high real personal disposable income and average real wage. During a recession, real personal disposable income and average real wage tends to be decrease and the unemployment rates tend to rise. When people in the unemployment situation, they will have less money than their life requirement. Their life quality decreases when they can barely put food on the table for their families or afford their bills. Increased inequality will make it even worse. Many people equate money with freedom, security, success and even happiness. People can not talk about life quality without
Many of us view poverty as mainly a third world issue, because it tends to have little effect on the majority of individuals on a recurring basis. Yet, it is a difficult situation prevalent in all types of civilization, despite the overall advances in technology, medicine and education that one country may have over the other. Poverty does not necessarily have to affect a specific individual, but as a country, it affects all levels of production; even when the production of a single country begins to falter, it could potentially have major effects on others, creating a continuous cycle.“Poverty is color blind”, it does not discriminate, and is a societal problem that needs to be dealt with today (Fullerton, par. 3). If not helped or solved,
Another method of measuring inequality is through use of the Gini coefficient, it represents statistical dispersion of the income distribution of nations residents. The trends in Australia’s Gini coefficient are a fall from 0.329 in 2009-10 to 0.32 in 2011-12, thus illustrating a reduction in inequality due to tax cuts and increased welfare ...
Poverty is not just an issue reserved for third world countries. Instead, poverty is a multifaceted issue that even the most developed nations must battle
Gadrey, J. and Catrice, F,J. (2006). The new indicators of well-being and development. New York::Palgrave Macmillan.
Income inequality in the United States has increased and decreased throughout history, but in the recent years, the widening gap has become a serious issue. Income inequality is usually measured by Gini coefficient. According to this method coefficient varies between 0 and 100; while 0 represents complete equality (income is distributed equally among all the population of the country), 100 represents complete inequality (only one person receives all the country’s income, while the rest of the population receives nothing). According to the Census of Bureau, the official Gini coefficient in the U.S. was 46.9 in 2010. This is way higher than the all-time low coefficient of 38.6 set in 1968 (qtd. in Babones).
Everyone knows what the word poverty means. It means poor, unable to buy the necessities to survive in today's world. We do not realize how easy it is for a person to fall into poverty: A lost job, a sudden illness, a death in the family or the endless cycle of being born into poverty and not knowing how to overcome it. There are so many children in poverty and a family's structure can effect the outcome. Most of the people who are at the poverty level need some type of help to overcome the obstacles. There are mane issues that deal with poverty and many things that can be done to stop it.
...herefore the choice we make as individuals, such as how we spend our earnings, etc. creates the class society place us in. We all desire to keep our family members safe, protected, educated, healthy and happy. The decrease in income may suggest other family members to interrupt their education and seek employment. Income decrease may also separate your family unity, because adjusting to change for some people is unthinkable. If small mid age children are in the family, this may cause them to commit crimes due to materialistic desires. Overall poverty may exist, and there is help for people, but people are in control to their destiny.
America is in a Great Recession, and the American Dream seems to be dying (if not already dead) for many Americans. I don’t think that the American Dream is dead; it just needs rehabilitation due to the injuries it sustained at the hands of an unregulated government. Though we are in a Great Recession, every American can progress their lives for the betterment of themselves and future generations. Brandon King (2011) in The American Dream: Dead, Alive, or on Hold? : “.the most worrisome problem is inequality: that wealth is concentrated into the hands of a rich minority.” Because of this, many Americans and politicians are arguing about either “raising the taxes on the rich” or “supporting the richest sectors in America” (Thomas, 2011) to stimulate the economy.
Poverty is usually referrer as the condition of having little or no money, but in some circumstances it can also be described as lack the means of support. According to Global Issues in the Causes of Poverty, over three billions of people live on the wages less than 2.5 dollars per day and 1 billion children, which is equivalent to one in every two children in the world, live under the condition of lacking shelter, safe water, or health services. There is also a huge misconception about the abundant food around the world. However according to the United Nations, there are still about 20,000 people die everyday by hungry or poverty related causes. Even though extreme poverty is not very common in the United States, it is a huge problem for many
The largest cause of unemployment can be attributed to recession. The term recession refers to the backward movement of the economy for a long period. People spend only when they have to. (Nagle 2009). With people spending less there would be less money in circulation therefore, enterprises would suffer financially and people would suffer too. This is so because recession reduces the fiscal bases of enterprises, forcing these enterprises to reduce their workforce through layoffs. These enterprises lay off their workers in order to cut the costs they incur in terms of wage and salary payments.
There are a multitudinous number of both economic and social difficulties associated with unemployment. One fundamental reason why the government particularly stresses on reducing unemployment levels is as a result it poses a great cost on the economy. Not only does it affect the economy, but also it poses a great threat towards the living standards of the unemployed people itself. This could lead to many receiving less or no income based on whether or not they receive unemployment welfare benefits from the government. Reduction in income, would lead to a less disposable inc...
Poverty extends out over all continents, making it the most widespread negative factor. Out of the world’s 2.2 billion children, approximately half live in poverty according to UNICEF. Poverty claims approximately 22,000 children’s lives per day. This statistic illustrates the struggle children that live in poverty must face in order to survive. Poverty is a root cause of hunger, disease, and lack of shelter. It is concentrated in pockets in areas such as South Africa and South Asia. Children, who must...
Poverty is an undeniable problem in America. In 2014, 14.8 percent of the United States was in poverty (“Hunger and Poverty Fact Sheet”). There are more people in the United States than it seems that do not have their basic necessities. In an
‘Deep poverty affects approximately 3.9 million young children, making them vulnerable and limiting their life experiences.”(deep poverty) The effects of poverty today are huge effecting not only children but “The World Bank projects that the number of people living in poverty fell to 702 million people in 2015, or about 9.6% of the global population.” (World poverty rate).Even though there are many systems out there helping these children, they are still vastly suffering by not being able to go to school to have a formal education and having low educational scores, malnutrition, and missing key social events causing social incompetence.
One of the most life changing effects of unemployment is the loss of income. Especially if they are a single parent of if they have a large family to support. Having no money means eventually having no food, no clothes, no shelter, and no car. It also prevents one from doing many things and activities, even though their amount of leisure time has increased. One might not have money to go to the movies, play on sports’ teams, or do any other recreational things. Being unemployed for a long enough time leads to a lot of debt. Any money that has been saved ends up getting spent rather quickly with all of today’s living expenses. Twenty thousand dollars may seem like a lot of money to some people, but with no income that money gets spent before you know it.