Chapter+20-+Income+Inequality+and+Poverty

Income Inequality and Poverty


 * Glossary:**


 * **in-kind transfers** || transfers to the poor given in the form of goods and services rather than cash ||
 * **liberalism** || the political philosophy according to which the government should choose policies deemed to be just, as evaluated by an impartial observer behind a “veil of ignorance” ||
 * **libertarianism** || the political philosophy according to which the government should punish crimes and enforce voluntary agreements but not redistribute income ||
 * **life cycle** || the regular pattern of income variation over a person’s life ||
 * **maximin criterion** || the claim that the government should aim to maximize the well-being of the worst-off person in society ||
 * **negative income tax** || a tax system that collects revenue from high-income households and gives transfers to low-income households ||
 * **permanent income** || a person’s normal income ||
 * **poverty line** || an absolute level of income set by the federal government for each family size below which a family is deemed to be in poverty ||
 * **poverty rate** || the percentage of the population whose family income falls below an absolute level called the poverty line ||
 * **social insurance** || government policy aimed at protecting people against the risk of adverse events ||
 * **utilitarianism** || the political philosophy according to which the government should choose policies to maximize the total utility of everyone in society ||
 * **utility** || a measure of happiness or satisfaction ||
 * **welfare** || government programs that supplement the incomes of the needy ||