Case Study: Inequality, Poverty and Wealth A study reported in 2001 discovered that relatively poor people give more generously to charity than those with greater wealth. The project, entitled “The Widow’s Might: How Charities Depend on the Poor”, was conducted by Beth Egan of the Social Market Foundation, who examined the contributions of over 1000 individuals to ten British charities. It was found that although richer people gave more money in absolute terms, this comprised a smaller proportion of their overall income than was the case for the poor: in other words, the lower a person’s income, the more of their earnings they donated to charity. For example, those with an annual income of under £5000 gave away an average of 4.5% in donations, whereas for those with salaries of over £40,000, the figure was only 2%. The journalist Lucy Ward suggests that this challenges the assumption most of us hold that charities redistribute income from the rich to the poor: instead, it would seem that charitable organisations rely upon those in relative poverty to support the most needy. Furthermore, there is a gender difference in so far as women are more likely to give to charity in general, but when men do contribute, they donate a higher proportion of their income. People born after 1950 were also found to be less generous in their donations than those born during or before World War II, which reveals an interesting shift in values between generations. Question: 1) In your opinion, are these generous poor people in absolute or relative poverty? Explain. 2) What do the findings suggest about how people in different social classes spend their disposable income
Case Study: Inequality, Poverty and Wealth
A study reported in 2001 discovered that relatively poor people give more generously to charity
than those with greater wealth. The project, entitled “The Widow’s Might: How Charities
Depend on the Poor”, was conducted by Beth Egan of the Social Market Foundation, who
examined the contributions of over 1000 individuals to ten British charities. It was found that
although richer people gave more money in absolute terms, this comprised a smaller
proportion of their overall income than was the case for the poor: in other words, the lower a
person’s income, the more of their earnings they donated to charity. For example, those with
an annual income of under £5000 gave away an average of 4.5% in donations, whereas for
those with salaries of over £40,000, the figure was only 2%. The journalist Lucy Ward suggests
that this challenges the assumption most of us hold that charities redistribute income from the
rich to the poor: instead, it would seem that charitable organisations rely upon those in relative
poverty to support the most needy. Furthermore, there is a gender difference in so far as
women are more likely to give to charity in general, but when men do contribute, they donate
a higher proportion of their income. People born after 1950 were also found to be less generous
in their donations than those born during or before World War II, which reveals an interesting
shift in values between generations.
Question:
1) In your opinion, are these generous poor people in absolute or relative poverty?
Explain.
2) What do the findings suggest about how people in different social classes spend their
disposable income?
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