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2. 2 INTRODUCTION DEFINING POVERTY EXPLANATIONS OF POVERTY WHO ARE THE POOR? THE WELFARE STATE SUMMARY

3. 3 INTRODUCTION This unit concerning poverty reflects the inequality that exists in our society. This is an important issue for sociologists. Poverty was once considered a social problem and sociologists carried out research to understand the issue and to attempt to provide solutions to solve the problem of poverty.

4. 4 INTRODUCTION State welfare and benefits have considerably changed in the last one hundred years in developed countries, such as Ireland, in an effort to reduce the number of people who fall into the category of being ‘poor’.

5. 5 INTRODUCTION Poverty and wealth exist in developed countries. Some people are rich; others are poor. Civilised societies provide help for those that are sick, unemployed or retired, through taxation of their citizens. This ensures that those groups have a minimum income to live on.

6. 6 INTRODUCTION If families have an income, they can normally manage to live reasonably comfortably, even if they cannot afford to buy everything that they want. So how do we define poverty and who falls into the category of being ‘poor’? Poverty is deprivation due to lack of resources, both material and non-material e.g. income, housing, health, education, knowledge and culture. It requires a threshold to measure it.

7. 7 INTRODUCTION Ireland has experienced rapid economic growth in the 1990’s and into the twenty first century. However, poverty still exists. A number of indicators, are used to measure progress in eradicating poverty, such as income, levels of deprivation, early school leaving age, jobless households, long-term unemployment and life expectancy.

8. 8 INTRODUCTION The Government - approved ‘poverty measure’ identifies the proportion of people from those with an income below a certain threshold (less than 60% of median income) who are deprived of two or more items from the following index:

9. 9 INTRODUCTION Two pairs of strong shoes

10. 10 INTRODUCTION A warm waterproof overcoat

11. 11 INTRODUCTION Have the ability to buy new clothes

12. 12 INTRODUCTION Eat meals with meat, chicken, fish (or vegetarian equivalent) every second day

13. 13 INTRODUCTION Have a roast joint or its equivalent once a week

14. 14 INTRODUCTION Have had to go without heating during the last year through lack of money

15. 15 INTRODUCTION Have family or friends for a drink or a meal once a month

16. 16 INTRODUCTION Have a morning, afternoon or evening out in the last fortnight for entertainment

17. 17 INTRODUCTION One individual who was extremely influential in defining poverty was Seebohm Rowntree who devised research at the beginning of the twentieth century to define whether people were in poverty or not.

18. 18 INTRODUCTION He defined people as belonging to a category: or below the poverty line (in poverty) above the poverty line (out of poverty)

19. 19 INTRODUCTION He argued that people needed: Food Clothes Shelter These were the minimum for existence. The poverty line was drawn at the point where a minimum was needed to ‘maintain health’.

20. 20 INTRODUCTION Since Rowntree’s research, there have been many attempts to redefine poverty as society changes and people’s expectations of their lives change too. So poverty has to be defined in the time that it occurs. The Irish Government defines people living in poverty, ‘if their income and resources (material, cultural and social) are so inadequate as to preclude them from having a standard of living which is regarded as acceptable by Irish society generally. As a result of inadequate income and resources people may be excluded and marginalised from participating in activities which are considered the norm for other people in society.’

21. 21 INTRODUCTION There are two types of poverty: absolute poverty and relative poverty.

22. 22 INTRODUCTION Absolute poverty means that a person does not have what they need to survive physically, for example, they do not have food, drink, clothing or shelter.

23. 23 INTRODUCTION Relative poverty means that the individual is measured against the standard of living of the rest of the society in which he/she lives.

24. 24 The difference between absolute poverty and relative poverty is the difference between: Absolute poverty: An individual’s biological needs: FoodFood WaterWater ClothingClothing ShelterShelter Defining poverty

25. 25 The difference between absolute poverty and relative poverty is the difference between: Relative poverty: An individual’s needs according to a generally accepted standard of the society in which the individual is living at that specific time. Defining poverty

26. 26 Poverty can be measured by considering how much support the Government has to give to low income families. The average income can be calculated and poverty can be defined as being a percentage of the average income. Defining poverty

27. 27 The ‘at risk of poverty’ indicator identifies all households or people who fall below a certain income threshold, which in the EU has currently been set at 60 % of the median income. Median income is the amount that divides the income distribution into two equal parts, half of the people having incomes above the median and half below the median. Defining poverty

28. 28 Defining poverty The average income can be calculated and poverty can be defined from this.

29. 29 Poverty has been a feature in the development of all countries and it is an issue that all governments have to face. Defining poverty

30. 30 In Ireland at the beginning of the 20 th century, social reforms (changes) took place, such as The Poor Relief (Dublin) Act. Welfare benefits and pensions followed in the years to come so that people could rely on the State if they were in need. Defining poverty

31. 31 State pensions were introduced as so many major sociological surveys had shown that the elderly were a category very much at risk of poverty. Defining poverty

32. 32 In the early 20 th century in Ireland when poverty was rife and the following ‘Depression’ of the 1930’s when unemployment levels were so high, led on to reviews of the state provision for the unemployed and sick. Defining poverty

33. 33 Serious reviews needed to be undertaken in the second half of the twentieth century in the areas of: Unemployment Housing Poverty Health and Education Defining poverty

34. 34 It was assumed that most women would not work but instead stay at home bringing up their children. Women therefore often only received benefits through their husbands for some time. Defining poverty

35. 35 Changes took place after the 1940s when many women began careers. Defining poverty

36. 36 The early part of the twentieth century did bring about many reforms and altered the dire poverty that had existed in Ireland. Defining poverty

37. 37 The debate about ‘what is poverty?’ has continued right up to the present day though.

38. 38 So are there other ways of attempting to measure poverty? Defining poverty

39. 39 Another way of measuring poverty is to consider how income and wealth in society have changed. This can help us decide how much poverty exists in our society. Another way of measuring poverty is to consider how income and wealth in society have changed. This can help us decide how much poverty exists in our society. Defining poverty

40. 40 Many people argue that it cannot be denied that general living standards have been raised in the last century. Nearly everyone in this country lives at a better standard of living due to the market economy. This is not always taken into consideration in some of the studies undertaken on poverty. Many people argue that it cannot be denied that general living standards have been raised in the last century. Nearly everyone in this country lives at a better standard of living due to the market economy. This is not always taken into consideration in some of the studies undertaken on poverty. Defining poverty

41. 41 A ‘consensual’ definition of poverty can also be used. People can be asked to list what the necessities of life are and these can be ranked in order of importance. So, antique furniture and perfume may not be considered absolute necessities but clothes, food and basic furniture might be. A ‘consensual’ definition of poverty can also be used. People can be asked to list what the necessities of life are and these can be ranked in order of importance. So, antique furniture and perfume may not be considered absolute necessities but clothes, food and basic furniture might be. Defining poverty

42. 42 Depending on which approach to estimating poverty is used the response to the question, ‘How many people live in poverty?’ can be very different. Different definitions will give different answers and sociologists need to be aware of this. Government policy can be formed on statistics about poverty so sociologists have a very important responsibility. Depending on which approach to estimating poverty is used the response to the question, ‘How many people live in poverty?’ can be very different. Different definitions will give different answers and sociologists need to be aware of this. Government policy can be formed on statistics about poverty so sociologists have a very important responsibility. Defining poverty

43. 43 Explanations of poverty Explaining why poverty still exists, even in relatively rich countries such as Ireland, is a problem that the Government has to consider.

44. 44 Explanations of poverty Cultural explanations exist as to why there is poverty in our society. The culture of poverty is seen as a set of values that the poor have which others do not have. So, poverty is not defined just as not having money but is also combined with morals and behaviour. The culture of poverty is seen as a set of values that the poor have which others do not have. So, poverty is not defined just as not having money but is also combined with morals and behaviour.

45. 45 Explanations of poverty The emergence of a supportive welfare state is also held to be a reason for remaining poor. There is no incentive to try to rise out of the situation that people find themselves in. A word of warning here though – these are generalisations and have to be considered very carefully, as they obviously do not apply to all people.

46. 46 Explanations of poverty Some people may decline into a state of poverty temporarily and then climb out of it. The poor may be a group of changing people. Some elderly people may enter the group when they are retired and their savings run out, for example, but they may not have been part of this group previously.

47. 47 Explanations of poverty Studies have shown that people who are classed as ‘poor’ have the same hopes for themselves and their families as people who are wealthy and are not, as some people want us to believe, ‘different’ from those who have wealth.

48. 48 Explanations of poverty Poverty can also remain in families just because they are poor. They begin poor; they continue to be poor. A poor couple have children and bring them up fighting against poverty but those children cannot, or do not, have the skills to take themselves out of the poverty environment so they remain poor and have poor children themselves. Education and possessing the right skills that are needed in the job market may be a passport to climbing out of the poverty trap for young people.

49. 49 Explanations of poverty Governments have tried to put forward various solutions to combat a dependency on benefits and to encourage people out of the ‘poverty trap’. Governments want to ensure that people do not just rely on benefits even in times of unemployment but still retain the will to work. Equal pay for women and the introduction of a minimum wage, for example, have also improved the situation.

50. 50 Explanations of poverty A cultural explanation of poverty may be too simple though. People become ill; people become unemployed through no fault of their own. There are many reasons why people can suddenly find that they have fallen below the poverty line. We cannot just adopt the idea that the poor must be ‘problem people’. The poor are also those who work but cannot earn enough in unskilled jobs to raise themselves and their families out of poverty.

51. 51 Explanations of poverty Feminists believe that women fall into the poverty trap more easily than men. Due to their responsibilities for looking after children, women are dependent on their male partners. If that partner should leave, the woman is then left to cope with childcare and employment. Women often fill the gaps in the labour market with poorly paid jobs, casual jobs where they have few rights and low paid or part-time work.

52. 52

53. 53 The following categories of people can feature greatly amongst the poor: Lone parent families Unemployed people Sick and disabled Low paid workers The elderly Refugees Who are the poor?

54. 54 Some facts to consider: There are fewer elderly amongst the poor than there were previously There are more unemployed amongst the poor Unemployment is a powerful reason for poverty The numbers of single-parent families have increased Homelessness has increased since the 1970s Debt has also increased Who are the poor?

55. 55 Women are more likely to become victims of poverty Working class people are more likely to be poor Members of ethnic minority groups are more likely to be poor Children and the elderly are afflicted by poverty Who are the poor? Government statistics show these trends.

56. 56 The unemployed, who are out of work, are often the least skilled among the workforce. Ethnic minorities can be prone to unemployment in greater numbers than white people. Lone parent families are often poor because of the limited opportunity for employment and the high cost of having children. Who are the poor?

57. 57 The Welfare State In this section, we are going to consider the welfare state. What is welfare? A simple explanation is that through the welfare state the government ensures that families receive a minimum income on which to live.

58. 58 The Welfare State At the same time, the government tries to overcome problems associated with unemployment and retirement. They provide social services, such as housing benefits.

59. 59 The Welfare State The social welfare system in Ireland helps people through different payments: Social insurance payments Means tested payments and Universal payments

60. 60 The Welfare State However, an undeniable fact is that people are living longer and need support for longer from the welfare system. More pupils remain in school longer and a greater number of students go on to higher education. The financial costs are high for the Government.

61. 61 The Welfare State There is a general view in most political parties that the welfare state has to be affordable and be highly effective. During tight economic recessions, spiralling costs of welfare need to be constantly reviewed.

62. 62 The Welfare State Care in hospitals has become expensive so the elderly and mentally ill are encouraged to accept ‘care in the community’ which is cheaper than having them stay in hospital. There have been reforms designed to assist women. Child benefit is paid to mothers and there are tax allowances for childcare.

63. 63 The Welfare State If we consider what life was like for the working classes before the introduction of the Welfare State, most people would argue that it has benefited the population. Only some people would say that the Welfare State has made people too reliant on state benefits helping them if things go wrong in their lives.

64. 64 SUMMARY Although poverty is an issue that has been in our society since it began, we have not been able to eliminate it. Inequality still exists between the wealthy and the not so wealthy. The welfare system, for all its imperfections, has attempted to cushion the gap between poverty and a reasonable standard of living.

65. 65 SUMMARY Education, housing and health care have all improved for the masses. The voluntary services also have helped in cases of dire need. Charities who assist homeless people and many other charity organisations supply resources and assistance to those who need support.

66. 66 SUMMARY Most people would agree that the system is far from perfect. We have to continue to attempt to understand poverty and to contribute to the means of finding a solution to it. Social inequality and poverty will remain burning issues for the Government.