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Category Archive: Income and Poverty

  1. The Costs of Brazil vs Germany: Protest and Poverty at Brazil’s World Cup

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    Brazil gained prestige in landing the World Cup and Olympics, but sometimes hosting a major global event isn’t as glamorous as it seems. For a start, it’s difficult to justify massive spending — Brazil plans to spend $31 billion between the two — for such a temporary payoff. . Many venues created for these events, including those erected for the Olympic Games in Athens and Beijing, have fallen into disrepair after the celebrations ended. Many workers die on these massive construction projects — hundreds, already, for Qatar’s 2022 World Cup. Government often evicts lots of people from their homes, as Beijing did to over 1.5 million people in anticipation of the 2008 Summer Olympics. So why are cities and countries so eager to host? Often for the international prestige. However, support can sour quickly, as it has in Brazil, when the real costs became more apparent. Economist Matt Ryan from Duquesne Universityasks you to consider those costs now – a country that wins the bid may lose big overall.

  2. Working More to Earn Less | Why the Poor Stay Poor

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    You may have heard the term “poverty trap” – the notion that the poor are stuck at the bottom. What if someone told you that our welfare system exacerbates this cycle by punishing the poor for working more? Prof. Sean Mulholland argues that this is happening every day. Well-intentioned welfare programs drastically decrease benefits at certain income thresholds—which in effect can make a breadwinner and his/her family worse off when they start earning more. Sound absurd? That’s because it is.

  3. Everything’s Amazing and Nobody’s Happy | Econ Chronicles

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    People tend to think the world is much worse off than it actually is. Bad news gets a lot more attention than good news. Professor Bryan Caplan calls this “Pessimistic Bias,” and argues that it affects the policies people  vote for. Despite the amazing economic gains of the past 100 years and even the past decade, most people are under the impression that things are just getting worse. But Prof. Caplan argues that even with all the tough problems in the world, there is reason for optimism; contrary to most people’s expectations, he contends that the best is yet to come.

    Hat tip to Louis C.K.

  4. From Rags to Riches: The Cayman Islands Revolution

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    The rule of law, Hayek wrote, is “a rule concerning what the law ought to be”: It ought to be general and abstract; equally applied, with legal privileges for none; certain, not subject to arbitrary changes; and just. In this Learn Liberty Academy, Andrew Morriss sets sail to show how the law of the Cayman Islands conforms with Hayek’s ideals, how it got that way through astute political entrepreneurship, and how the world at large benefits from its legal wisdom. The benefits of Caymanian rule of law are so diffuse and far-reaching that we can even attribute the American poor’s high consumption of healthcare to it.  Embark on Morriss’s expedition — read, watch lectures, and discuss!

    Song credit: “Coconut Water” – Dan O’Connor

    Archival images courtesy of the Cayman Islands National Archive

  5. Debate – What Would Happen if America Opened its Borders?

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    The United States has laws in place to limit the number of immigrants granted entry. How many immigrants should be allowed to call America home? Bryan Caplan, professor of economics at George Mason University, argues that the United States should have open borders. Jan Ting, professor of law at Temple University, argues that there need to be limits on the number of immigrants.

    In this clip, Prof. Ting argues that open borders would result in an enormous increase in the number of immigrants to the United States. He points out that there are so many opportunities here that people would come in huge numbers from less developed countries. The strain on the United States infrastructure and environment could be enormous.

    In his response, Prof. Caplan argues that the fact people would want to come in such great numbers is, in his mind, an argument favoring open borders. People should be living in places where they can achieve their potential. For many people around the world, this means they need to move. Would this have effects on the U.S. economy? Absolutely. Prof. Caplan argues that in the short run, housing prices would probably increase, for example. In addition, we may see a move to having personal servants, as many of the low-skilled workers in the world have skill sets that fall below the lowest-skilled workers in the United States. To offset pressures on the environment, Prof. Caplan recommends increasing costs for pollution and other environmental hazards.
    What do you think? Do you think the fact that many people would want to immigrate to the United States is an argument in favor or against opening the borders?

  6. Is Fixing Inequality A Matter of Justice?

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    The question of how to address poverty in the United States is complicated. Steven Horwitz, chair of the department of economics at St. Lawrence University, and Jeffrey Reiman, professor of philosophy and religion at American University, debate the level of government assistance that should be given to help the poor.

    In this clip, Prof. Horwitz suggest that the least amount of government necessary should be involved in alleviating U.S. inequality. He discusses the use, for example, of charitable donations from private entities as a way to help the poor without government involvement.

    Prof. Reiman, in contrast, suggests that poverty and inequality is a matter of justice. That is, everyone is entitled to a certain standard of living, a certain level of equality in outcome. He argues that charity hurts the dignity of the recipient. When it is a gift, the recipient is made to feel that he does not deserve the charity, that he is made lower than the giver. Instead, he argues, assistance given to the poor should be something they receive because they have a right to it. They should not have to feel that it is undeserved. This is an interesting philosophical question tucked inside a larger debate about the role of government in helping the poor. What do you think?

  7. A Marxian Case for Capitalism

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    The question of how to address poverty in the United States is complicated. Steven Horwitz, chair of the department of economics at St. Lawrence University, and Jeffrey Reiman, professor of philosophy and religion at American University, debate the level of government assistance that should be given to help the poor.

    In this clip from the full debate, Prof. Reiman answers Prof. Horwitz’s question about the role he sees for markets in addressing the poor. Prof. Reiman says he is a believer in capitalism and a believer in free markets. He finds that capitalism has worked well to raise the general standard of living for the poor in the United States and elsewhere in the world. He has even written a book titled, A Marxian Case for Capitalism. But he suggests that these gains are general and that more should be done for the individuals who are struggling in our country. Prof. Reiman also argues that the current system has degraded the dignity of many of the poor and that there are many problems that stem from bad government programs. But, he says, he does not favor abolishing the role of government dogmatically.

    Prof. Horwitz responds that the question of reducing government is not so much a dogmatic question as it is an empirical one. Has government worked at these things? Can it solve these problems? Prof. Reiman argues that perhaps the results are mixed. What do you think? Watch the full debate for more.

  8. Debate: What To Do About Poverty

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    This LearnLiberty debate presents arguments for and against more government assistance to help the poor in the United States. Prof. Steven Horwitz argues that the government has created too many problems and that lifting government-imposed barriers to the poor will go a long way toward solving the problems of inequality in the United States. Prof. Jeffrey Reiman takes the view that government, while not perfect, will have a key role to play in creating better programs to help the poor. What do you think?

     

  9. When Capitalism Fails (Why Won’t Anyone Think Of The Children?)

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    The question of how to address poverty in the United States is complicated. Steven Horwitz, chair of the department of economics at St. Lawrence University, and Jeffrey Reiman, professor of philosophy and religion at American University, debate the level of government assistance that should be given to help the poor.

    In this clip, professors Horwitz and Reiman discuss how children who are poor can best be helped. While adult poverty may, in many cases, be due to some fault of the adult, should children have to suffer their parents’ mistakes? Both argue in favor of improvements in the education system, especially in creating more choice. While Prof. Horwitz suggests this can be done outside of government, Prof. Reiman argues that government will still have to be involved, even if only to create the vouchers.

    Prof. Reiman also turns the question on its head, suggesting that perhaps the children of successful parents should not benefit from the parents’ success any more than children of poor parents should not be punished for their parents’ failings. Should all children start out on an equal footing, financially as well as educationally? What should be done to improve education opportunities for the poor? Is the government the best provider of education? What are your thoughts?

  10. How to Fight Global Poverty

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    Have you heard the news? The number of people living in abject poverty—defined as living on less than $1.25 per day—has been halved since 1990. How did that happen? Prof. Stephen Davies explains that extreme poverty has been on the decline in part because two of the world’s most populous countries, China and India, have embarked on a path of economic liberalization and development over the past two to three decades. As more countries have embraced free trade and market-friendly policies, we have seen encouraging news of poverty reductions and greater access to clean drinking water. If such policies continue, Prof. Davies says, it’s not out of the question for extreme poverty to be eradicated in the foreseeable future. These gains are likely to be lost, however, if we make poor economic decisions that take us back toward protectionism and economic controls. With good economic policies and free markets, we can help many of the poorest people in the world.

  11. Combating Global Poverty with a Cup of Coffee

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    Millions of people in the developing world struggle to survive on just a couple of dollars a day. Fair trade claims that buying fair-trade labeled coffee is a way to help the poor. But is it the best way? Professor Colleen Haight has been researching fair-trade for the past 10 years; she’s also spent time on coffee plantations in Central America talking with the coffee farmers there about their experiences. She says that while fair trade has done a lot to increase consumer awareness, it may not be the best way to actually help the poor.

    Fair-trade coffees cost a little bit more than necessary and the extra profit is returned to the farmer. Fair trade farmers are small landowners, but migrant workers—who are much poorer than any landowner—do not benefit from fair trade. Fair-trade farmers are required to pay migrant workers the minimum wage in their country, but that’s already the law.

    Prof. Haight says there is a better way to help these poor migrant workers. You can help them by buying premium coffees instead of fair trade coffee. Premium coffee beans are harvested with greater care and fetch higher prices at the market. As a result, migrant workers receive higher pay working for farms that produce premium coffees. Premium coffees and fair-trade coffees cost about the same amount, but buying premium coffees does more to help the poor than buying fair-trade labeled coffees. You have a limited amount of money; you should be able to use it in a way that maximizes the benefits to the poor.

  12. What’s So Great about Economic Freedom?

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    Economic freedom is about the freedom to buy and sell things, says Professor Antony Davies, but it’s also about the freedom to interact with people, to converse with others, to travel, and to say what we want to say. Evidence shows that economic freedom is associated with many positive things in society. This holds true among states in the United States and across the countries of the world.
    Countries that have more economic freedom also tend to have higher GDP per capita. They tend to take better care of the environment. They also tend to have less child labor and more gender equality. Prof. Davies examines the data on these factors and several of the arguments people have raised about the data to show the many benefits of economic freedom. Economic freedom is about being free to make your own choices. It allows us to:
    - Do what we love
    - Create wealth
    - Protect the environment
    - Improve equality
    - End child poverty