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Go Tomorrow

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Submitted By phuongphuong111
Words 566
Pages 3
ECON 250
ECONOMICS OF POVERTY

Views of Inequality and
Poverty
Reading: Schiller, Chapter 1
Review of Graphs: PDF file
(blackboard)

Today’s Topics






Hot issues
Analytical framework for causes of poverty
The complexities of measuring well-being
How poverty is related to inequality
Using Graphs: A review

Hot Issues
• What is poverty?
• Poverty in America






Who are the poor? why are they poor?
Are they deserving of our assistance?
Who should provide assistance?
Are we providing too much or too little assistance?

• What is economic inequality? Does it matter?
• What is economic justice?

Analytical Framework for
Identifying the Causes of Poverty
1.

2.

3.

Flawed Character
– Personal characteristics responsible for poverty
– Human Capital theory supports this perspective
• Individuals can enhance their labor market value by investing in education and training Restricted Opportunity

Obstacles restrict opportunities for earnings

Weak economy, poor schools and low quality education, discrimination
Big Brother

Government policies induce rational but undesirable behaviors that keep people poor •
Work disincentives (welfare)

Encourage births outside of marriage

Encourage family breakup

Flawed Character and Big Brother

Source: Center for American Progress (2014)

Restricted Opportunity

Source: 50 Years After LBJ’s War on Poverty, Center for American Progress (2013)

Source: Center for American Progress (2014)

Role of Government

Source: Center for American Progress (2014)

Role of Government

Source: Center for American Progress (2014)

Analytical Framework for Identifying the Causes of Poverty, cont.
• Caveats
– Schiller’s “Causes” are not mutually exclusive. Avoid the mistake of choosing sides
– Not everyone employs Schiller’s framework

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