The one-sentence truth: Wealth is not merely income accumulated; it changes security, opportunity, bargaining power and what can be passed between generations.
Core vocabulary
Wealth, income, asset ownership, concentration, redistribution, progressive taxation, poverty, inequality, intergenerational transfer, economic security.
Income versus assets
Income supports current consumption; assets can provide housing, investment returns, collateral and resilience against shocks. Two households with similar incomes may have very different economic security.
Concentration
Concentration asks how much wealth sits with a relatively small share of people. Its importance depends on whether it translates into unequal opportunity, political influence or vulnerability elsewhere.
Redistribution
Redistribution can occur through taxes, transfers, public services and asset-building policies. Evaluate effects on equity, incentives and fiscal sustainability.
Intergenerational advantage
Inheritance, housing, networks and education can transmit advantage. This matters for mobility because inequality today can shape opportunity tomorrow.
Example sentence
“Wealth inequality is more persistent than income inequality where asset appreciation compounds over time and access to ownership is itself unevenly distributed.”
Singapore application
Housing ownership, wages, education, taxes and transfers can be analysed through different dimensions of wealth and opportunity. Avoid reducing inequality to one indicator.
Continue the JC2 GP vocabulary system
Return to General Paper Vocabulary Year 2 (JC2) and Vocabulary for Junior College (JC1–JC2).
Final thought
Wealth matters because it changes not only what people have, but which risks they can survive and which opportunities they can reach.