Question 1. Relative and absolute poverty
Despite the fact that both absolute and relative measures of poverty are used to assess the levels of poverty, they vary in describing what in reality poverty is. Absolute poverty is definitely the lack of basic needs and requirements. Such needs include food, housing, clothing, sanitation and water. On the other hand, relative poverty denotes a poverty line, and describes the necessary amount an individual requires to sustain and meet their basic needs. Simply, the shortage of basic requirements is what is termed as relative poverty. Relative poverty encompasses inadequate income to meet the luxuries.
In general terms, absolute poverty is used to describe the set of circumstance, which is prevalent in all the nations, whereby the circumstance remains intact and cannot be adjusted over a given period. Conversely, relative poverty is used to describe the deprived condition and circumstance of an individual in relation to the society in which the person emanates. This aspect tends to make relative poverty differ from one nation to another. Furthermore, it does not remain intact. Therefore, it can be altered over a given period of time. A good example is that quite a considerable number of urban regions will tend to have high level-academic institutions as well as low fuel prices that may result to low transportation costs. Thus, the poverty line of these states will be greater compared to developing nations. On the other hand, when it comes to relative poverty, the poverty line in which an average person ought to fall in has the potentials of rising as the country endorses economic stands. However, in absolute poverty, the poverty line is common. This implies that the circumstance is spread all over the world. An example of relative poverty is where a person living in a rich society may have a constant income and has all the requirements necessary for living, however, just because the person has no luxuries as the entire society, he is considered to be in a state of relative poverty. Conversely, in the case where a given individual is not in a position of having access to the necessities of life, they are viewed to be in absolute poverty. A good example is the case of third world countries where people are surviving on $1 - 2$ a day. Such a circumstance entitles third world countries as experiencing absolute poverty.
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Question 2. Working Poor
Work is highly valued in the society and considered as the best way to realize the economic sanctuary and self-reliance. However, it is somehow awkward for people to work and still maintain deprived conditions. Presently, in spite of strong labor markets with low rates of employment, there are still millions of society members who work but still fall below the poverty line. Despite of huge adjustments and changes in the labor market, the demographical state of the working poor has been constant over the years. However, this phenomenon is instigated by quite a number of catastrophes. Such problems include, low paying and unstable jobs. Apparently, it is not an odd thing for the working poor to be positioned in low paying-jobs that provide fewer opportunities that leads to success.
The other problem is the deficiency of full year employment. The probability of the working poor to work fully over the entire year as compared to other workers is minimal. Hence, they tend to face the difficulty of obligatorily working on part time schedule as compared to other workers. Lack of enough education is another instance that instigates the prevalence of the phenomenon. There is a less likelihood for the working poor to hold high school and university academic qualifications. Out of a total percentage of 32%, only 8% of the working poor have attained college degrees. Additionally, there is a less likelihood for them to be trained on jobs by their employees. The amalgamation of inadequate academic qualification and less or no training make it difficult for them to embrace high positions. Lastly, the working poor have health difficulties, a research carried out by Ohio State University indicated that the working poor have health limitations or even other severe conditions that may restrict them from fighting poverty.
Question 3. Difference between Social and Public Insurance
Public insurance is an automobile insurance system that is owned and operated by the government. The policy works on the basis that if people are coerced to make purchases on auto insurance by the government in place, then the government is obliged to ensure fair play when it comes to the coverage. Public insurance is intended to cut the number of people living in poverty. Secondly, it is tailored to lessen the harshness of poverty for the population that remains poor, for without the program, families would have a non-refundable income that is equal to 29% of the poverty line. The Program increases the income to about 57% of the poverty line. Thirdly, the program offers health coverage to quite a considerable populace who would otherwise remain uncovered.
Social insurance on the other hand is any program sponsored by the government and whose risks are transmitted to and assembled by a government agency that is legally necessitated to offer specified assistance. The main intention and reason for its prevalence is to keep an individual to diving into poverty. Additionally, individuals are assisted in the case of an emergency. It includes eliminating some money for the purpose of compensating against a loss that emanates from a given emergency. It constitutes the development of a common fiscal fund from which, all the benefits that comes in form of cash are remunerated. Moreover, this is implemented to support workers, bosses, and the state at large. Secondly, the involvement of the workforce is purely trifling and is maintained at a low level to prevent surpassing the capacity of remuneration. Thirdly, benefits are considered a right, hence, one is entitled to their rights; therefore, an individual is granted their right without putting them into any test, this is done to uphold some sense of respect to the beneficiary.
Question 4. The Limitations of Social Security
Social security is regarded as one of the most successful social welfare program. Presently, the program offers support to a number of groups in the society including, the disabled, unemployed, and the desperate. However, the program comes with quite a number of drawbacks. Among the many drawbacks that accompany the program, the most notable is the high cost associated with the program. Government critics always antagonize the program on the basis that, it is not in a position of offering fiscal support to the very many elements of the society.
The other drawback is the fact of disincentive, there has been a number of opposition to the program on the allegations that, unemployed social welfare programs construct disincentives for individuals to get lucrative employment. People are highly responsive when it comes to incentives. Programs on social welfare tend to jeopardize these incentives by remunerating the non-working class. Increased involvement of the Government on these programs suggests that the party that gains a lot is the definitely the government. This makes citizens who rely much on the welfare programs to allow the government to interrupt their individual choices.
References
Felder, S. (2005). Risk Adjustment Schemes in Social Health Insurance: Adjusting for Cost Differences Between Insurance Plans. Finanzarchiv: Public Finance Analysis , 61 (4), 500-515. doi: 10.1628/001522105776072744
Joo, M. (2011). Effects of federal programs on children: Absolute poverty, relative poverty, and income inequality. Children And Youth Services Review , 33 (7), 1203-1211. doi: 10.1016/j.childyouth.2011.02.011
Katrougalos, G. (2010). Constitutional Limitations of Social Security Privatisation: A Human Rights Approach. European Journal Of Social Security , 12 (1), 16-40. doi: 10.1177/138826271001200102
Larkin, P. (2018). Universal Credit, ‘Positive Citizenship’, and the Working Poor: Squaring the Eternal Circle?. The Modern Law Review , 81 (1), 114-131. doi: 10.1111/1468-2230.12318
