Post on 20-Jan-2016
description
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.
http://www.usccb.org/cchd/povertyusa/ http://www.usccb.org/cchd/povertyusa/tour.htm
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.
1,000,000,000+
Over 1 Billion People Live in “Extreme Poverty”
World Bank
The Wealth of Nations
http://en.wikipedia.org/wiki/File:GDP_nominal_per_capita_world_map_IMF_2009.png
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.
$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)
Where has the number of poor declined?
Institutions Matter
Rule of LawPrivate Property RightsOpen, Competitive MarketsEntrepreneurship and Innovation
Let’s define CAPITALISM as having the RIGHT INSTITUTIONS in place.
Source: World Bank Poverty and Inequality Databasehttp://databank.worldbank.org/Data/Views/Reports/TableView.aspx (April 30, 2012)
More Good News…
Economic Freedom and Income Shares of Poorest 10% 1990-2009
Economic Growth
improves the lives of the poor by making the pie bigger
Bigger “slices” mean higher standards of living
Economic Growth
The Big Picture
reducing infant mortality increasing life expectancy reducing hunger improving environmental qualityreducing the incidence of debilitating diseasesimproving health care and educationincreased standard of living
Scarcity forces us to choose among alternatives.
Economic growth gives us more to choose from and raises standards of living by:
The Big Picture
Rule of LawPrivate Property Rights Open, Competitive MarketsEntrepreneurship and Innovation
The RIGHT INSTITUTIONS spur economic growth and create wealth/reduces poverty.
CAPITALISM is having the RIGHT INSTITUTIONS.
CAPITALISM IS GOOD for the POOR!
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/
The Two Dollar Challenge
Is
CAPITALISM
GOOD For The
ENVIRONMENT?
It DEPENDS!
Economics for Leaders
Economics for Leaders
On Scale of 0 to 500, Beijing’s Air Quality Tops ‘Crazy Bad’ at 755
NY Times, January 12, 2013