This study note looks at the difference between income and wealth
Income is not the same as wealth
Income is a flow of money going to factors of production:
Wealth is a stock concept – it is a large amount of money or valuable possessions and can be held in different ways:
Many dimensions of poverty
Poverty is hunger. Poverty is lack of shelter. Poverty is being sick and not being able to see a doctor. Poverty is not having access to school and not knowing how to read. Poverty is not having a job, is fear for the future, living one day at a time. Poverty is losing a child to illness brought about by unclean water. Poverty is powerlessness, lack of representation and freedom.
Source: World Bank Development Report
Inequality in the distribution of income and wealth
Living standards depend on the level of economic activity and on the redistribution of resources within society as a whole. The level of inequality of income and wealth can be measured by:
Mean and median income in the UK
For 2009 the figures (in £s per week) were as follows:
6 per cent of individuals in Britain live in households with disposable incomes of £1,000 per week or more and this helps to explain why the mean value for household income exceeds the median.