Chapter 2.21 How successful was the League of Nations in the 1930s2

Apuntes

Chapters 14-15 economics 📘 14.1 Income and Wealth Income is money earned over time (like wages, rent, interest, or profit). It's a flow – it comes regularly. Wealth is the total value of what someone owns (like houses, shares, or savings). It's a stock – built up over time. Many rich people in Asia built their wealth through companies, unlike in Europe where wealth is often inherited. 📊 14.2 Measuring Inequality: Gini Coefficient The Gini coefficient measures income inequality: 0 = perfect equality 1 = one person has everything Most countries fall between 0.3 and 0.6 A lower Gini (e.g. 0.3) means more equality. Table 14.2 compares inequality in different countries. → Example: Lesotho = 63.2% (very unequal), Australia = 30.3% (more equal). 💡 14.3 Causes of Inequality Inequality can happen due to: Lack of formal jobs Weak training and education systems Poor health care and infrastructure Low savings rates No access to credit or loans These problems limit growth and keep people in poverty. 🏛️ 14.4 Government Policies to Reduce Inequality Governments can: Use taxes and transfers to redistribute income and wealth. Face challenges in poorer countries because: The informal econom...