ECONOMICS
INCOME DISTRIBUTION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -Taxation and income transfers to the poorest segment of society are the most direct way to keep inequality in check and reduce poverty in the short term. These instruments are particularly appropriate when the benefits of growth fail to reach the poor.
Detailed explanation-2: -In 2020, the ONS calculated that the richest 10% of households hold 43% of all wealth. The poorest 50%, by contrast, own just 9%. More than that, for the UK as a whole, the WID found that the top 0.1% had share of total wealth double between 1984 and 2013, reaching 9%.
Detailed explanation-3: -In 2020-21, 37% of total disposable household income in the UK went to the fifth of individuals with the highest household incomes, while 8% went to the fifth with the lowest. The Gini coefficient for income inequality was 34% before housing costs and 38% after housing costs in 2020-21.