Poor Economics: We Can Help


Poor Economics by Abhijit V. Banerjee and Esther Duflo calls for people to not be discouraged by the enormous issue of poverty.  A study they did where they showed students different fliers with information about the poor and then asked for donations confirmed the idea that while people’s first thought is to be generous, they often rethink and decide there is no point since the problem of poverty will never be solved.  The book emphasizes that the most important factor to solve poverty is where the aid given by individuals or nations to poor countries goes rather than where the money comes from because poverty is not solely about a lack of income, but rather a poor person not having the capabilities to reach his or her full potential.  The chapter concludes by determining that poverty is a trap when opportunity expands dramatically for those can invest just a bit more than others.  For example, a farmer who needs fertilizer.  Although the farmer may be able to buy half a bag of fertilizer himself, he will only reach a real agricultural boom when he receives a full bag, which is where aid could be of large help.  Poverty may seem like a permanent part of our nation, but it does not need to be.