Aspects of a society are not defined by its wealth but by the gap between the rich and poor. The larger the gap, the more poorly it will score on measures like educational performance, crime rates, health, and social mobility.
Governments don't see inequality as a problem itself, but rather don't want it to be extreme. Governments have a duty to ensure the living standards of the poorest are not too low.
Reasons for introduction and continuation of welfare states
1. Moral - it is not seen as acceptable for some to be well-off while others are in poverty
2. Political - to prevent the working class from rebelling against injustice and inequality, and to win support and votes from particular groups by giving them benefits
3. Functionalist - welfare benefits maintain society's values and prevent it from becoming dysfunctional
In the USA, the value of individualism encourages people to work and look after themselves, which has apparently been more successful than the European approach
Another way is calculating the total cost of necessities, as used by Peter Townsend in his studies on UK poverty, which found that 20% of the UK was in poverty
Being poor is expensive, as people have to spend a lot on essential standard of living (e.g. unable to travel to cheap shops, unable to insulate homes, buying old/second-hand goods, unable to borrow at low interest rates)
The idea that poor people have a set of values that keep them in poverty (e.g. low literacy and education, fatalism, feeling marginalised, not using resources, needing immediate gratification)
Research has shown that the poor have the same values as the rest of society, and the 'culture of poverty' is sometimes used by politicians as an excuse not to tackle poverty
Sees it as a positive aspect for the functioning of society, as it rewards those with natural abilities and creates workers for undesirable jobs, while increasing social solidarity through charity
Sees it as an inevitable consequence of capitalism, where the rich get richer and the poor get poorer, as capitalists pay the working class as little as possible
The world's poorest people face risks like living in areas exposed to flooding and pollution, having temporary homes, being affected first by climate change, and having limited access to health, education and other services
Women still face discrimination in employment - they are more likely than men to work part time, and time away from work when children are born and while the children are young can affect their opportunities for promotion