Poverty economics Name of the of the university Date Table of Contents Brief overview/synopsis of the issue 3 Economic theory or model relating to global poverty 4 Discussion on the economic theory on poverty and inequality 7 Critical analysis of the outcome presented in the article 8 References 10 Brief overview/synopsis of the issue The article that has been chosen for this paper is titled “Reason and the end of poverty” and is written by Chief Economist and Senior Vice President of the World Bank, Kaushik Basu…
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The model of trickle-down effect of growth is found to be prevalent in practice in the real world. Under this model, the benefits of growth are mostly savored by the upper and middle classes of the society. The lower middle class and the grass root level receive very little benefits of this economic growth. This is due to the fact that there is serious problem of income inequality in most of the economies in the globe, particularly in the developing countries (Altmann et al., 2013). All the sectors in the developing economies are not equally developed and there is huge inequality in income in the countries. In the concerned article, the Chief economist of World Bank has mentioned that the Bank has placed two new objectives that it would strive to achieve. These two goals are “ending extreme and chronic poverty in the world by 2030, and promoting shared prosperity, defined in terms of progress of the poorest 40% of the population in each society” (Basu, 2013). ...
factors that affect this growth rate are rapid technological development, improvement in productivity and the lowering in the number of people living below poverty across the world. During the 19th century and also in the first few decades of the 20th century, over 1.2 billion people in the world used to live below the poverty level (the poverty line is set at $1 per day). Currently, this percentage of population has fallen marginally. According to the theory of poverty line, the people living below poverty line have the purchasing power of less than $1 dollar per day. Additionally, it must be noted in this context that more than half of the population of the world lives below $2 dollars per day. The variables that measure poverty are under nutrition, poor health condition, poor level or absolutely no literacy, environmentally degraded and unhygienic living condition, low or no access to essential things in life (such as clean water) and lack of protection of fundamental freedoms or rights. Poor people all over the globe are characterized by the living condition in slum areas and under nourishment. Scholars and economists have univocally agreed that poverty is integrally linked with inequality in income distribution (Naranpanawa, Selvanathan & Bandara, 2013). One commonly used method of measuring the personal income statistics is the Lorenz curve. The Lorenz curve helps to analyze the percentage of income against the percentage of income recipients. The further the line is from the diagonal, the greater is the degree of inequality. The following diagram illustrates the workings of the Lorenz curve. Figure 1: Lorenz curve (Source: Anonymous, n.d.) The further the curve bends from the diagonal, the greater is the inequality in income level. The area between the two
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(“Poverty Economics Research Paper Example | Topics and Well Written Essays - 1750 words”, n.d.)
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(Poverty Economics Research Paper Example | Topics and Well Written Essays - 1750 Words)
“Poverty Economics Research Paper Example | Topics and Well Written Essays - 1750 Words”, n.d. https://studentshare.org/macro-microeconomics/1489841-poverty-economics.
The main purpose of the research is to present that poverty has become one of the major economic concerns in the United States recently. Indeed, by a considerable margin, the country has the highest poverty rate among all other developed economies. Particularly disturbing are the poverty rates for children: 3-4 times bigger than in most European countries.
Rich advocates for the utilization of gradual decrease in the benefit of those who are able to get a job instead of a nine-month cutoff period once the person is able to cross the threshold of $1,000. “That way, they preserved some benefits as they eased back to work, rather than losing them all after just nine months” (par.
Income and employment outcomes for most people are largely influenced not just by individual aspects such as job experiences and educational degree, but also by the privileges and resources of the sector they belong to, such as families, communities, and countries.
A great amount of human suffering has been generated by global poverty. In addition to that, it has been unmatched by some tragedies in remote or recent times. For instance, the number of individuals who have died due to poverty is quite amazing. This creates the need to study poverty with the aim of finding possible solutions to eradicate it (Caranti, 2010).
This is precisely what Amartya Sen attempts to do in his book Development as Freedom. It is an attempt to look at development not just through increases in figures of growth but also through an actual increase in the general welfare of the people who are a part of a particular nation state.
Poverty refers to a situation where individuals lack basic needs to run smoothly in their day-to-day life. The basic human needs include food, shelter, water, clothing, health care, and education. According to Nelson (13), the climate change is one of the roots of poverty among communities.
This threshold as defined by the US government is adjusted for inflation, which is done by using the CPI, or consumer price index. The Us government uses total received income in defining the poor with poverty levels in 2012; for instance, set at an annual income of $23,050 for families with four members.
Instead, our project is to engage in counterfactual conditional theorizing with the “what if” that begins the question of “what if poverty were eliminated”. Counterfactuals ask what would be the case if the antecedent (or “if-part”) of the if-then statement were
There are many people with income problems, but the population which this current investigation focuses upon is the population of the homeless. There are different definitions of who is actually homeless and who is at risk of becoming
e form of employees in a given economy, the demands of these employees, and efforts to comprehend the ensuing pattern of their earnings, service, and salaries. Old welfare economics followed two key presumptions. First, one can measure utility in terms of money and is a
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