Blog #10, How a basic income in the U.S. could increase global poverty

Summary

This article discusses how a basic income in the United States could actually increase global poverty.  Occupy activist David Graeber and libertarian economist Charles Murray, want to see a lump sum income replace a bureaucratically administered federal welfare system.  Liberal economist Barbara Bergmann is against the basic income, because she thinks people need those specific federal programs.  Megan McArdle, the interviewee, agrees with Bergmann that the basic income couldn’t replace the existing social welfare system but instead, it would end up doubling the federal budget.  The United States would also have to halt immigration from poorer countries, which would also increase global poverty.  McArdle discusses why she is opposed to the guaranteed income, how the basic income affect would work, supporting federal programs the way they are, and whether or not she believes we would ever have a guaranteed minimum income.

Analysis

This article was very interesting and intriguing. I would have never thought that a basic income in the United States could increase global poverty.  I didn't think it would have a global effect.  McArdle makes many valid points and arguments throughout her interview.  She described the issue as fiscal.  If you think about giving every man, woman, and child about $15,000 a year to live off of.  It’s about 200 million people you would have to be sending those checks to — a little over, actually. So you’re talking about in the region of $6 trillion a year, which is much larger than our current budget.  That was the first very valid point she made.  I feel that the most valid point she made was her second, when she was asked "how would a basic income affect work?", she replied by saying, "The other problem of course is that some people are going to drop out of the labor force. If you can live without working, some people will choose to".  This is a very valid point and I absolutely agree with her.  If people could live without working, many people would choose not to and take advantage of the system.  The system in which many people already do.  This would lead to even more problems,  including global poverty.

http://www.pbs.org/newshour/making-sense/how-a-basic-income-in-the-u-s-could-increase-global-poverty/

Blog 9, Ending Extreme Poverty In The World by 2030

Summary

The article revolves around a discussion between World Bank President Jim Kim and Ali Velshi about the institution's campaign to end extreme poverty in the world by 2030.  People living in extreme poverty, are defined as those making less than $1.25 a day.  Currently, 17.7 percent of the world's population falls into that category.  The World Banks goal is to reduce that number significantly, down to 3 percent.  Jim Kim was quoted as saying, “We’re very focused on lifting the billion or so people living in extreme poverty out of that condition so that they can have those things that everybody in the world wants”.  The World Bank aims to lift 50 million people out of poverty each year by investing in health, education, roads, energy, infrastructure and more.  Kim was asked a series of questions in regards to poverty not only in the United States, but throughout the rest of the world as well. 

Analysis

This was a very powerful, and inspiring interview and article.  Jim Kim touched on a vast number of very important issues regarding world poverty.  When asked about the inequality in America, Kim made a very valid and strong quote.  Kim said, "The World Bank is actually tracking the income growth of the bottom 40%. There's a lot of really good data that suggests that the higher levels of inequality is actually a drag on economic growth. So even if all you care about is economic growth then you've really got to be focused on inequality."  This is extremely important.  As an American, I believe out first concern and focus should be on the inequality here in the United States.  The United States has the highest inequality rate in the whole world.  That is a HUGE problem.  One that must be addressed swiftly, and with the utmost urgency, if we ever hope to get our economy in a better position.  Kim also touched on the other 80% of the World's population that are making around 2 dollars a day, the United States debt, how climate change can effect economies, and the top 1%.

http://america.aljazeera.com/watch/shows/real-money-with-alivelshi/articles/2014/4/9/ending-extreme-povertyintheworldby2030.html

Blog 8, India needs multi-pronged approach to eradicate poverty: Report

Summary

This article talks about how a multi-pronged approach, with the focus on inclusive economic growth would help eradicate poverty, which is increasingly getting concentrated in a few geographical areas.  This article is based on observations of the India Public Policy Report, also known as the IPPR.  The report was just released this week and in the report it says, “Overcoming poverty requires a context specific multi-pronged strategy that includes: a basic needs approach, a human rights entitlement approach, a natural resource management approach and a focus on inclusive economic growth”.  The biggest problem in India, is that poverty is becoming increasingly concentrated in a few geographical areas.  This is a particular among specific groups, with poverty increasing in the urban areas as well.  The report’s Policy Effectiveness Index, is based on four factors - livelihood opportunity, social opportunity, rule of law and physical infrastructure development.

Analysis

This article was very short and to the point.  The main point of this article, was to touch on the most recent information regarding poverty in India.  This happened to be the India Pubic Policy Report.  Inclusive economic growth is defined as "a concept which advances equitable opportunities for economic participants, during the process of economic growth, with benefits incurred by every section of society.  So when referring this to India, this would mean that the goal is to make sure equality and equal opportunity is spreading throughout India, and not just in one area.  Currently, poverty is becoming increasingly concentrated in a few geographical areas.  This means that these particular areas are experiencing a high level of inequality, which is now increasing in the urban areas as well.  Livelihood opportunity, social opportunity, and the rule of law and physical infrastructure development, are the sole reasons as to why this is a problem in India.  The first step in working towards a solution, would be to focus on the infrastructure and the social opportunity of these more poverty prone areas. 

Blog #7, Can the Bible Help Save World Poverty?

Summary

This article discusses the issue of whether or not the bible can help save world poverty.  This article revolves around an economist by the name of Barry Asmus, and a theologian by the name of Wayne Grudem.  These two teamed up to present a time-tested bluprint for what they believe, is the solution to solving poverty.  This blueprint revolves around a mixture of free market values and the bible.  These two wrote a book together titled "The Poverty of Nations: A Sustainable Solution", which they described as "a robust proposal for fighting poverty on the national level".  Through mixing both free market principles and teachings from the bible, they believe it can lead to economic prosperity and long-term stability.  They discuss the values, moral teachings, and the freedom of choice discusses in the bible.  Grudem said "one doesn’t need to embrace the Bible as the written word of God to see the book as offering up wise ancient wisdom that can be practically used in the real world".  Asmus said that the biggest problem with impoverished countries is ignorance.  Ignorance to the problem of poverty and to some of the antidotes needed to empower the populace.  Grudem also added that dependence on foreign aid, depleting natural resources, blaming outside sources for poverty and attempts to “redistribute wealth from the rich to the poor” are also impediments to success.

Analysis

I found this article to be very interesting and intriguing.  I actually agree with a lot of the points that both Asmus, and Grudem made throughout the article.  Some can be very controversial, but overall, I feel that their outlook and connection to the bible and free market values is pretty much on point.  However,  the two argue in the book that some effective principles for lowering poverty are governments that uphold freedoms like property ownership, the freedom to buy and sell, the freedom to travel, the freedom to trade and freedom from excessive government regulation.  However, many of this countries have no other choice but to listen to the government.  When you are under a dictatorship or a communist nation, if you rise up against them and rebel you will more than likely be killed.  For these drastic of changes to occur, it would require a vast amount of people to rise up, fight, protest, and rebel.  However, no changes will be made if the people who are fighting for change are killed.  This article and their book make some very interesting and thought provoking points, however I do not feel it is very "realistic".  Like Asmus said, ignorance is a major problem but how can these people not be ignorant?  They are constantly suppressed and oppressed, they have horrible education systems, they are ran by a corrupted government and police force, and they have very little freedom.  The only possible outcome of living in a society like this, is ignorance.

 http://www.theblaze.com/stories/2014/03/28/can-the-bible-help-solve-world-poverty/

Blog #6 : How Business Can Lift People Out Of Poverty: 4 Insights From The World's Best Social Entrepreneurs

Summary

          This is a very interesting article that discusses the power that business can have on affecting, and improving poverty on a world scale.  The article starts off by asking the question "How do you profitably sell to a customer who earns less than $2 per day?".  The article discusses a new kind of entrepreneur, who is springing up and looking at things differently.  This is, with business being the best way to fight poverty.    Sam Goldman, an engineering student from Stanford, makes low-cost solar lanterns that are specifically designed for people making $2 a day.  Jordan Kassalow, who owns an eyeglass company called VisionSpring, has successfully sold over 1 million pairs to people in developing countries.  Prema Gopalan, has built a network of women entrepreneurs across rural India that sell all kinds of transformational products that can lift a rural household out of extreme poverty.  These social entrepreneurs view their customers—the world’s poorest people—as collectively comprising the world’s largest under-served market, with an annual purchasing power of over $1 trillion.  They do this through 4 steps.  Through recruiting and empowering local changemakers, building a movement and not a market share, embracing competition as a strategy to scale impact, and how it's about mission and not money.

Analysis

          This article was very inspiring and surprising.  I am so used to corporate companies taking advantage of, and exploiting the poor and less fortunate.  Whether it is through working conditions, pricing, or product.  This new "brand" of entrepreneurs, and the way they look at things is much different than your typical businesses or corporations.  They are actually designing their businesses around not only profiting off the poor, but by helping them in the process through cheap prices and products that are designed to target their needs.  Their views are very original, thoughtful, and nontraditional.  People like Sam Goldman, Jordan Kassalow, and Prema Gopalan have the potential to change the consumer world.  My favorite quote from the article stated, "If you really want to succeed in the toughest market on earth, you need more than a sales plan and a profit motive – you need a mission."  This is a very powerful and accurate message.  Especially when you are making products that target the poorest in the world.  Their mission is simple.  Make products that the poorest in the world can afford, and benefit from at the same time.

http://www.forbes.com/sites/ashoka/2014/03/21/how-business-can-lift-people-out-of-poverty-4-insights-from-the-worlds-best-social-entrepreneurs/

Blog #5, One-quarter of female led households live in poverty

Summary

This article goes into detail about the poverty rate of households in Turkey.  A little over one-quarter of households run by women in Turkey, are in poverty at 27.2 percent.  Households ran by men have a 20 percent poverty rate.  When looking at research conducted by Bahçeşehir University's Center for Economic and Social Research, they stated that 7.7 million out of the total population of 72 million, live in a household where the primary provider is female.  This leads to poverty being very vast and widespread.  When looking at Turkey, the females are divided into two separate groups.  There is a younger group which is more educated and more attached to the labor market, and an older group that is less educated and more isolated from the labor market.  A study on March 5, showed that female participation in the labor force is at 25.9 percent and male participation is at 69.2 percent.  According to the EU, the average rate of female participation in the labor force in developed countries is at 62 percent, which puts Turkey well under the average.  High-level public officials who are female remained at 9.3 percent.

Analysis

Honestly, these statistics were not very shocking.  Women throughout the entire world are discriminated against on a daily basis.  Specifically within the educational system and the work force.  These statistics proved true in Turkey as well.  In 2013, females in high-level public official positions ranked at 9.3 percent, judges were at 36.3 percent, and the academic staff was at 28.1 percent.  When looking at these numbers, it is evident as to why households ran by women have such a high poverty rate.  They cannot obtain jobs that pay very well.  The president of the Turkish Association of University Women (TÜKD) Nazan Moroğlu told Today's Zaman that Turkey is ranked 120th out of 135 countries with regard to women's employment, and stressed that Turkey does not have much to celebrate on March 8, International Women's Day.  However, the rate for female executives wasn't that far behind global average.  The global average for female executives is 24 percent, and Turkey was at 20 percent.  In Eastern Europe the rate for female executives is at 37 percent, 38 percent in Southeast Asia and China, and the lowest rates for female executives fell in Japan at 9 percent, followed by the United Arab Emirates and India at 14 percent.  

 http://www.todayszaman.com/news-341474-one-quarter-of-female-led-households-live-in-poverty.html

Blog #4, Aid shrinks as poverty grows

Analysis

This article discusses how Australia and neighboring countries are questioning the future of aid and international development.  This problem has arrived after a series of cuts to foreign aid budgets.  Despite all the substantial economic growth, the widening inequalities in income is creating a world of "have and have-nots", which government policies and programs do not reflect.  In November there was a conference hosted by The University of Technology in Sydney, Australia.  The conference was held on how to ensure the world's poorest people benefit from economic growth.  One of the professors at the conference said that "Poverty and inequality are being overlaid with global issues – climate change, natural disasters, declining resources and the urbanization of many developing countries,".  The main thing that people attending the conference were focusing on, was the announced cuts to Australia's national aid budget and the approaching end date in 2015 for the Millennium Development Goals.  They came together in hopes of finding new approaches to ending poverty.  Growth in foreign aid would be cut by $4.5 billion over the forward estimates to help fund essential infrastructure in Australia.  ACFID executive said that "despite a significant reduction in the number of people living in extreme poverty during the past two decades, about 2.4 billion people live on less than $US2 a day".

Summary

This article really grabbed my attention and emotions.  The fact that even with s significant drop in the number of people living in extreme poverty during the past two decades, there are still around 2.4 billion people throughout the world that live on less than 2 American dollars a day.  This is not only a huge problem, but it really magnifies the fact that poverty is a very serious issue.  When you really look at what the ACFID executive director Marc Purcell said, you really begin to realize how many people are still living in devastating poverty.  I could never imagine living on $2 American dollars a day.  It would be impossible.  You would have absolutely no way to pay for food, clothes, or a place to stay, and your state of mind would deteriorate drastically.  You would have absolutely no hope of surviving.  At least not in America.  When you look at other countries and the dramatic rates of poverty, you realize they really have no hope either.  People that are experiencing this level of poverty, have no chance whatsoever, of ever advancing in any society.  They are shackled and chained to their financial instability.  Despite this, the conference heard about promising new approaches to sustainable development and key challenges, including how the sector can grow public awareness and work with the media in a changing, fast-paced environment.  However, none of these "approaches" are truly promising.  They are merely ideas and thoughts being discussed at a conference.  Without the proper guidance and finances, this approaches may never come to fruition.

http://www.smh.com.au/national/aid-shrinks-as-poverty-grows-20140212-32hvq.html

Blog #3, Struggling out of poverty rut

Dustin Chance

SOC 202

 Analysis

This article discusses the state of poverty in the Philippines, specifically Camarines Norte.  The NSCB disclosed in a 2012 survey of poverty incidence in the country—its most recent—that Camarines Norte’s poor families comprised 21.7 percent, or almost 22 in every 100 families.  This particular survey, which is undertaken every three years, measures the total value of minimum requirements of an individual to survive with the most basic needs in a given environment or locality.  Camarines Norte, has a population of over half a million and 116,000 households in 12 towns.  Even with these large numbers of families in poverty, this area has progressed in ways.  The construction of government infrastructure projects, a growing tourism industry, relative peace, and the production increases of Rice, Pineapple, and Coconut, are all major reasons that the province began to recover drastically.  These infrastructure prompted the increase of workers pay, and help stir the local economy in a positive way.

Summary

When I first began reading the article I thought it was going to be a negative one, but after reading through the article in its entirety, it proved to be a very positive one.  Camarines Norte has actually began changing in a positive way and its economy is gradually flourishing.  Records from the provincial tourism office in Daet, the capital town, showed that 138,151 tourists went to Camarines Norte in 2010, 155,106 tourists went in 2011, and 190,918 tourists visited Camarines Norte in 2012.  With any country, city, state, or location, an increase in tourism will almost always result in a boost of the economy.  This particular article really verified this idea and showed statistics to back it up.  As the tourist rate increased, so did the state of the economy.  This brought in more money and more attention to the area.  The construction of concrete roads, stretching over 250 kilometers, was also a major contribution to the growth and production of the area.  These roads connected isolated villages to the mainstream road network and helped facilitate the movement of goods and services to the town center.  Overall, this was a positive article that showed both production and growth, of a once poverty stricken economy.

http://newsinfo.inquirer.net/580888/struggling-out-of-poverty-rut

Blog #2: Dustin Chance, 2/14/2014 4:47 pm, Poverty

Summary

This article takes a look at the effects that poverty has on the brain.  The theory that is being is discussed is that "poverty reduces cognitive capacity because poverty-related concerns consume mental resources, leaving less for other tasks."  This leads to the poor behaving often in less capable ways, which can further perpetuate poverty.  When looking at IQ facts, it states that "the condition of poverty's mental burden equals losing 13 IQ points, and that poverty is a bigger risk factor for mental illness than being exposed to warfare.  The article states that in 2010, 1 out of 8 adults lived in poverty, and 1 out of 5 children.  1/4 of African Americans live below the federal poverty line, compared to about 1/8 of Americans overall.  Women are also more prone to live in poverty than men.  

Analysis

When looking at the numbers, this article refers strictly to America.  However, this same ideology can be implied to other countries in the world.  The vast majority of countries around the world lack the economic resources that America has.  So if we are struggling with poverty so much, than imagine how bad these less fortunate countries are doing.  This is a global social problem.  People are struggling with poverty everywhere.  It is evident in the news, in statistics, in photographs, and through all political sources.  Unfortunately, the vast majority of people coming from very poor regions and third world countries, have very little hope of coming out of poverty.  the system is set up to keep them suppressed.  They are not given equal opportunities, they lack proper health and nutrition, they have very poor working conditions, and the educational system is bad, if there is even an educational system at all.  So looking at this post, I visualize how poverty effects these people's cognitive capacity.  Not people in America, but people throughout the entire world.



http://livinggreenmag.com/2014/02/14/people-solutions/poverty-burdens-brain-infogfraphic/

poverty reduces cognitive capacity because poverty-related concerns consume mental resources, leaving less for other tasks.
Read more at http://livinggreenmag.com/2014/02/14/people-solutions/poverty-burdens-brain-infogfraphic/#gRCy4PFluCwOza5y.99

poverty reduces cognitive capacity because poverty-related concerns consume mental resources, leaving less for other tasks.
Read more at http://livinggreenmag.com/2014/02/14/people-solutions/poverty-burdens-brain-infogfraphic/#gRCy4PFluCwOza5y.99

Blog #1: Dustin Chance, 2/6/2014 - 6:58 am, Handbag company lifts Pakistani women from poverty

Summary:

This article revolves around a high-end handbag company, consisting of lush leather and hand-embroidered silk, which goes by the name "Popinjay".  A year ago, Popinjay, which was operating as the nonprofit BLISS, was on the brink of collapse.  Saba Gul, the MIT-educated founder, had left her six-figure paying job to launch the non-profit in an attempt to help Pakistani girls who were forced to leave school and work.  Due to BLISS operating as a nonprofit and working directly with the underprivileged, it experienced some complications.  With the lack of financial support, Gul re-branded BLISS as the for-profit Popinjay.  Negotiating the terms herself, Gul was able to raise $265,000 from investors.  In October of 2013 Popinjay launched it's first official line.  Popinjay now employs 150 who make $2.50-3 dollars an hour, which is 2 to 3 times what they were making at BLISS.

Analysis:

This piece was very intriguing to read.  It really gives you a great idea of how under-paid these women workers are.  It also talks about how, as a non-profit company at first, many investors refused or were uncooperative to help financially.  However, once she made this a profitable company, Gul was able to raise $265,000 from investors.  This occurred right as the company was on the brink of collapse.  Saba Gul is a Pakistani girl herself, and to see her leave a six-figure paying job and work to help these women, who are much less fortunate than she is, is very inspiring to say the least.  This article does a great job of covering global trade issues, as well as foreign policy.  Without the help of Saba Gul and the negotiations she made herself, this company would have without a doubt went under.  It is due to her bravery, risk taking, and financial selflessness, that she was able to take the company to another level, increase the working wages of the women by 2 to 3 times as much as they were previously making, and allow these women to work only 3 hours a day, yet make half of what their husbands make working full time.

Web Link:  http://money.cnn.com/2014/02/06/smallbusiness/nonprofit-bliss-popinjay/

Topic: Poverty

Throughout the semester, I would like to explore current events on Poverty and Inequality.  I grew up in a single mother household with a little brother, and the biggest problem we had was money.  The poverty that I grew up in is absolutely nothing compared to the vast majority of other places around the world.  I want to learn more about these families, how they survive, the struggles they face, and what society is doing to help, if anything.