Chapter 23 Section 3. Income Inequality Three Influences on Income Incomes differ for several reasons. Education, family wealth, and discrimination are.

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Presentation transcript:

Chapter 23 Section 3

Income Inequality Three Influences on Income Incomes differ for several reasons. Education, family wealth, and discrimination are common reason for income differences  Education- Level of education has a major impact on a person’s income.  Family Wealth- Access to more opportunities.  Discrimination- - Equal Pay Act of 1963, - Civil Rights Act of Opportunity Act of Americans with Disabilities Act

Welfare Programs ProgramDefinition Food Stamps Women, Infants, and Children (WIC) Income Assistance Supplemental Security Income Temporary Assistance to Needy Families (TANF)

Poverty Poverty Guidelines and programs  People in Poverty- Annual income $9, Million people. Welfare Programs  Food Stamps- To alleviate hunger and malnutrition.  Women, Infants, and Children (WIC)- Provides help with nutrition and health care to low-income women, infants and children up to age 5.

Poverty Continued  Income Assistance- Pays cash to certain people.  Supplemental Security Income (SSI)- Payments to blind or disabled people and age 65 and older.  Temporary Assistance to Needy Families (TANF)- Families who need help because a parent is dead, disabled, or absent.  Workfare- A term used to describe programs that require welfare recipients to exchange some of labor in exchange for benefits.

Poverty Continued Tax Policies  Progressive Income Tax- The tax rate is lower at lower incomes and higher for higher incomes.  Earned Income Tax Credit (EITC)- Gives tax credits and even cash payments to qualified workers. (20 Million people)

Questions 1.How is workfare different from welfare? 2.What is compensation? Under what circumstances does someone receive compensation? HOMEWORK: 3. Write 1 page aimed at students who are thinking about dropping out of high school. Use what you have learned in this lesson and this year to convince them to stay in school. Remind them that dropping out has serious economic consequences, and explain what they are. (Persuade/Argue in your essay to stay in school)

Government Programs