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Tuesday, March 04, 2014

'The Real Poverty Trap'

Paul Krugman:

The Real Poverty Trap: Earlier I noted that the new Ryan poverty report makes some big claims about the poverty trap, and cites a lot of research — but the research doesn’t actually support the claims. It occurs to me, however, that the whole Ryan approach is false in a deeper sense as well.
How so? Well, Ryan et al — conservatives in general — claim to care deeply about opportunity, about giving those not born into affluence the ability to rise. And they claim that their hostility to welfare-state programs reflects their assessment that these programs actually reduce opportunity, creating a poverty trap. ...
In fact, the evidence suggests that welfare-state programs enhance social mobility, thanks to little things like children of the poor having adequate nutrition and medical care. And conversely, of course, when such programs are absent or inadequate, the poor find themselves in a trap they often can’t escape, not because they lack the incentive, but because they lack the resources. ...
So the whole poverty trap line is a falsehood wrapped in a fallacy...

    Posted by on Tuesday, March 4, 2014 at 01:43 PM in Economics, Income Distribution, Politics, Social Security | Permalink  Comments (48)



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