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Is CAPITALISM GOOD For The POOR?

Is CAPITALISM GOOD For The POOR?. No Yes. It DEPENDS!. Economic Terminology. What is poverty? Who are the poor? Are countries/individuals poor? What is Capitalism? What is GOOD? Differentiate between inequality & poverty.

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Is CAPITALISM GOOD For The POOR?

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  1. Is CAPITALISMGOOD For The POOR?

  2. NoYes

  3. ItDEPENDS!

  4. Economic Terminology • What is poverty? • Who are the poor? • Are countries/individuals poor? • What is Capitalism? • What is GOOD? • Differentiate between inequality & poverty.

  5. http://www.usccb.org/cchd/povertyusa/http://www.usccb.org/cchd/povertyusa/tour.htmhttp://www.usccb.org/cchd/povertyusa/http://www.usccb.org/cchd/povertyusa/tour.htm

  6. Who is Poor? • Absolute Poverty – A designated minimum threshold of material well-being or income. • Current standard = $1.00 - $1.25 / day PPP (World Bank) • By this definition, people are poor if they cannot match the standard of living of someone living on $1.00 - $1.25 a day in America in 2005.

  7. Over 1 Billion People Live in “Extreme Poverty” World Bank 1,000,000,000+

  8. The Wealth of Nations http://en.wikipedia.org/wiki/File:GDP_nominal_per_capita_world_map_IMF_2009.png

  9. $1.25/day per person = poverty • $21,027/year = poverty for a family of 4 (US) • $5,256.75/year per person = poverty (US) • $14.40/day per person = poverty (US) By this definition, people are poor if they cannot match the standard of living of someone living on $1.25 a day in America in 2005.

  10. Where has the number of poor declined?

  11. Institutions Matter • Let’s define CAPITALISM as having the RIGHTINSTITUTIONS in place. • Rule of Law • Private Property Rights • Open, Competitive Markets • Entrepreneurship and Innovation

  12. More Good News… Source: World Bank Poverty and Inequality Databasehttp://databank.worldbank.org/Data/Views/Reports/TableView.aspx (April 30, 2012)

  13. Economic Freedom and Income Shares of Poorest 10% 1990-2009

  14. improves the lives of the poor by making the pie bigger Bigger “slices” mean higher standards of living Economic Growth

  15. Economic Growth

  16. The Big Picture • Scarcity forces us to choose among alternatives. • Economic growth gives us more to choose from and raises standards of living by: • reducing infant mortality • increasing life expectancy • reducing hunger • improving environmental quality • reducing the incidence of debilitating diseases • improving health care and education • increased standard of living

  17. The Big Picture • CAPITALISMis having the RIGHTINSTITUTIONS. • Rule of Law • Private Property Rights • Open, Competitive Markets • Entrepreneurship and Innovation • The RIGHT INSTITUTIONSspur economic growth and create wealth/reduces poverty. • CAPITALISMISGOODfor the POOR!

  18. The Two Dollar Challenge • What is Challenge Week? • Live on two dollars a day and follow other RULES for a week, and record your experiences for others to read. Fundraise for economic development as you abstain from purchasing goods. • Why Participate • Begin to understand firsthand the hardship that half the world's population endures. Nurture a new respect for impoverished persons. • Participants have many reactions throughout Challenge Week as demonstrated in these blog entries from past years. Students face additional, unexpected obstacles and struggle with the emotional discomforts of "playing poverty." http://www.twodollarchallenge.org/

  19. Is CAPITALISMGOOD For The ENVIRONMENT?

  20. It DEPENDS!

  21. On Scale of 0 to 500, Beijing’s Air Quality Tops ‘Crazy Bad’ at 755 NY Times, January 12, 2013

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