Living Conditions 2
As we have seen, much of the wealth of the US is concentrated in just a few people.
10% of its population had an estimated 75% of the wealth in 2015.
In this chart we see some comparisons with other countries.
In contrast to the US, 10% of Japan's population had less than half of the total wealth.
In China, in 2014, the estimated share of the top 10% was 64%, but this number is rising.
Russia had the highest concentration of wealth, at over 80%!
India, which has one of the largest economies, has the largest share of the world's poorest people.
The share of wealth of its richest 10% is 370 times that of its poorest 10%.
Question:
— Which of these countries has the largest share of the world's poorest people?
— India
A major challenge for a government is to improve the living conditions of its citizens.
As we have seen, growing an economy isn't enough.
Population growth and distribution of wealth are also important factors.
Improving education and developing job skills can help people move up in an economy.
With better education and training, the poor can increase their ability to get better jobs and raise their income.
Fill in the blanks:
A major challenge for a government is to improve the living conditions of its citizens.
Question:
— How can education change how wealth is distributed?
— It can help the poor to get better jobs and increase their share of the wealth.
However, taxes are needed to pay for social services, including health and education.
Some countries tax the rich at a higher rate than the poor.
However, if taxes are too high, it can discourage investment and risk taking.
This is because investors won't take risks unless the rewards are high.
So, as you can see, these are complex issues.
Question:
— How can high taxes discourage investment?
— They can reduce the rewards for taking a risk.
Repeat & Read Sentences:
1. As we have seen, growing an economy isn't enough.
2. Investors won't take risks unless the rewards are high.
3. However, if taxes are too high, it can discourage investment and risk taking.
