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All will agree that consumption patterns have changed significantly in the past 40 years. In Table 2 we see the poverty thresholds by family size for In a country as big and diverse as the USA it makes sense to have a measure of poverty that accounts for differences in the cost of living between areas, and not just in differences between time periods.
Graph 1 tracks changes in the official poverty rate from to Graph 2 presents the poverty rates for different age groups.
This graph indicates that anti-poverty efforts in the US for the Elderly Social Security have been more effective than policies for Children and Adults.
Economic Causes of Poverty Scarcity The primary policy for reducing or elimi- nating poverty in America has been to promote economic growth. While the political reasons for promoting economic growth as a means to reducing poverty still exist, the economic rationale has in- creasingly come under suspicion. The past thirty years of economic growth in the United States has not had much success in significantly reducing poverty, either in its depth or its scope.
If insanity is doing the same thing and expecting different outcomes, it might be considered insane to continue to look to economic growth as our primary poverty reducing policy. The effect of economic growth on poverty rates can be seen in Table 3, which looks at the relationship between changes in GDP and poverty rates over the business cycle since Parentheses indicate t-statistic.
The coefficient for GDP growth indicates the impact of economic growth on the poverty rate. We can see that the coefficient for GDP growth declined significantly in the business cycle and again in the business cycle. The slight increase in the business cycle is still one third of the level.
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While the Blankesque model is very accurate for the earlier time period, we see that current poverty rates are much higher than those predicted by the model.
Income Inequality One of the reasons that economic growth has not successfully reduced the poverty rate in the USA is the fact that most of the benefits of economic growth have gone to the already well-off.
Source: U. Census, CPS Furthermore, the negative effects of the - recession have hit the poor consider- ably more 8.
Real Wages The standard means by which economic growth is translated into rising living standards is through a rise in real wages. Generally, when prod- uctivity increases, meaning workers are, on average, more productive, most of the benefits of this productivity is passed on to the workers in the form of higher wages.
Since the mid s, however, this has not been the case. Demographic Factors It is common to explain the persistence of poverty by looking at the characteristics of the poor, especially race, gender and level of education.
The standard economic approach to demographic factors is to look at each factor as if it had a market determined price. The analysis attempts to explain a poor persons low income starting from the low price they receive for their human capital this might make sense for education, but it is a bit absurd for race and gender.
Race There is no escaping the conclusion that race plays a role in the determination of poverty rates in America. In Table 6 we see that while Blacks and Hispanics make up Source: US Census. And while the gap between the incidences of poverty for Blacks has fallen from over four times the rate for Whites in to 2.
Looking at poverty rates by race we see a similar story of persistent poverty, with the notable exception of the poverty rate for Blacks recently falling below the early s previous low.
As we see in Graph 5, White and Hispanic poverty rates have not been able to break the floor set in the s. When we divide the poor by race and age, again we find few examples of the economic prosperity of the post period having a substantial impact on poverty. So far it seems as if only Blacks Children, Elderly and Adults and White Elderly have been able to reach poverty le- vels below their previous lows in the early s, with the rate of White Children falls just below its low in For each cohort there is a significant gap between the White poverty rates and the Black and Hispanic rates.
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It is hard to determine how much of this gap is due to the past effects of discrimination and how much is due to current discriminatory practices. The reasons for this are many - ranging from better health and edu- cational opportunities to social and cultural effects of poverty. Here we see the lasting and continuing impacts of past legal discrimination.
However, even though legal discrimination has been eliminated official segregation , how the USA spends its current health and education dollars heightens the already high levels of income inequality, promoting high future rates of poverty.
By giving inadequate medical care to a population, you ensure that large numbers of them will end up in poverty.
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They will be too sick or weak to compete successfully in any job market. Furthermore, an inadequate education is often a certain road to poverty, as we see in Table 7.
Source: Mishel, Berstein and Boushey, , p. Living in a family reduces the chance of living in poverty. The support that comes from families is clearly important.
The type of family structure is also significant. Furthermore, Female Headed Households have a Only 5. The above table shows that while the poverty rate of White Female Headed Households has been fairly stable, the poverty rates for Black and Hispanic Female Headed Households has declined in the past decade, another small success story in US efforts to reduce poverty due mostly to employment gains by this cohort. Ending Material Poverty As we have seen above, efforts to end material poverty which rely mostly on economic growth are not likely to be successful.
Economic growth is rarely robust enough to trickle down to the poor, and since the s economic growth has never lasted long enough to have a lasting effect on the level of poverty in America. Eliminating legal discrimination has helped reduce the incidence of poverty among Blacks, yet the benefits of these efforts and affirmative action programs seem to have reached their limit.
But I saw pretty quickly, even back then, that many of my customers, the big department store chains, were already doomed. Goodbye, Caldor. And Borders. And on and on. Story Continued Below Bureau of Labor Statistics Realizing that, seeing over the horizon a little faster than the next guy, was the strategic part of my success. The lucky part was that I had two friends, both immensely talented, who also saw a lot of potential in the web. I was so excited by the potential of the web that I told both Jeffs that I wanted to invest in whatever they launched, big time.
It just happened that the second Jeff—Bezos—called me back first to take up my investment offer. So I helped underwrite his tiny start-up bookseller. site did somewhat better.
Now I own a very large yacht. I was a mediocre student. What sets me apart, I think, is a tolerance for risk and an intuition about what will happen in the future.
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Bearing this in mind, we can look at their moments of rebellion against men. In this footnote, references to the original, English and Italian translations will be provided.
Now I own a very large yacht. Katherine Scandiffio. It is these claims that we want to look at. Stanford, Stanford UP, , pp.
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