Distribution of Income and Wealth

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Distribution of Income and Wealth by Sam Bahnert

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Distribution of Income and Wealth

  1. 1. Trends in the distribution of income and wealth By Sam Bahnert Higher Food Prices
  2. 2. Income distribution <ul><li>Income distribution is the spread of wealth within the economy. </li></ul><ul><li>Australia, over recent years has seen a fall in the height of inequality among the distribution of income over recent years however it still remains at a high level compared to other developed countries. </li></ul>
  3. 3. The level of Inequality <ul><li>Weekly earnings in Australia generally range from $150 to $1200 </li></ul><ul><li>This is showing the two </li></ul><ul><li>Extrems of the economy </li></ul>
  4. 4. Trends in Income - Gender <ul><li>Over time women have seen </li></ul><ul><li>increases in the amount participation </li></ul><ul><li>In the work force. </li></ul><ul><li>However women on average have lower incomes overall then men </li></ul><ul><li>E.g. Year 2005-2006 </li></ul><ul><li>Male: $983 </li></ul><ul><li>Female: $644 </li></ul>
  5. 5. Trends in Income - Ethnic & Culture <ul><li>Ethnic minorities will often have a lower average income then the majority of the economy </li></ul>
  6. 6. Trends in Income - Familys <ul><li>Over time the make up of an </li></ul><ul><li>Average family will change as of </li></ul><ul><li>Lately we seen increased numbers </li></ul><ul><li>In the number of single parent </li></ul><ul><li>Families. These obviously would have </li></ul><ul><li>A different level of income as well as needing to spend more on consumption. </li></ul>
  7. 7. Benefits of Inequality
  8. 8. Benefits <ul><li>The labor forced is encouraged to work harder </li></ul><ul><li>The labor force is encouraged to have a higher skill level and level of education </li></ul><ul><li>It also allows the labor market to be more mobile </li></ul>
  9. 9. Downside To Inequality
  10. 10. Down Side <ul><li>Inequality reduces overall utility </li></ul><ul><li>Can reduce economic growth </li></ul><ul><li>Reduces consumption and investment </li></ul><ul><li>Also the people that are on the lower spectrum of the income scale struggle more as prices rise as they spend more of their income on consumption. </li></ul>
  11. 11. The End <ul><li>By Sam Bahnert </li></ul>

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