Unintended consequences in everyday life. --Can have unintended negative health and economic consequences-Increase equity--Development can increase stratification--Development as a "machine for reinforcing and expanding state bureaucratic power" --Development reinforces racial stereotypes.
A One-Question Quiz on the Poverty Trap. It does help in situations where the problem is well known and complete compliance is required (like smallpox) Pigovian Taxes: strikes the root of the problem being addressed which minimizes the unintended consequences while maximizing the social surplus. Inequalities in: (5)Government policies to alleviate poverty and influence the Distribution of income and wealth (5)1. b. the instability of the household is perpetuated. This is how the customer is assured.When people who are not responsible for the entire costs of their actions take riskier actions than they would otherwise take.when one party induces the other to revel informationGraph showing how much the actual distribution of income differs from an equal distribution.captures how EQUAL OR UNEQUAL income is distributed, 0 = perfectly equal, 1 = perfectly unequalan economic side effect of a good or service that generates benefits or costs to a someone other than producers or consumers (third party) W/O providing compensation. Examples include: During the Four Pests … recommends intervention, bc the problem is getting children into classrooms with well trained teachers1. arose in the 1970s in response to these high interest rates"by the power of compounding, a small decrease in the interest rate can transform clients lives"About 150-200 million people (mainly women) have received microcredit loansMoneylenders often let borrowers choose repayment scheduleBc MFI payment is usually weekly in the same amount for everyone, keeping track is easier, and loan officers do not need to be highly trainedBanjeree and Duflo conducted MFI experiment and found positive results; households spent less on "wasteful" expenditures Having a ready supply of microcredit does not ensure the demand among poor people who don't want to start businessesPeople who aren't nosey don't want to join, group members don't want people they don't know in their groups, joint liability works against those who want to take risksWeekly repayments starting a week after the loan isn't good for people who need $$ now but aren't sure when they can pay back-Does not enable the type of entrepreneurship needed to truly escape poverty1. Quizlet flashcards, activities and games help you improve your grades. Family Problems . May not share the same values as middle class around hygiene, hunger, and luxuries1.The poor pay much higher interest rates than the richWhen the interest rate goes up, the borrower has more reason not to try to find a way to repay the loan. To ensure the best experience, please update your browser.refers to the condition where someone cannot afford the basic necessities of liferefers to disparity between high-income and low-income earnersindicates the percentage of people that cannot afford the basic necessities of liferefers to a situation where the region lacks the resources to have self-sustaining economic growthrepresents the income level needed for a basic standard of living.Compared to other economically advanced nations, the income inequality in the US is...Compared to less-developed nations, income inequality in the US is...Income is a ____ variable. where the low paid are trapped in relative poverty by having to pay income tax and national insurance on any wage increase as well as losing means-tested benefits so seeing little to no increase in their disposable incomethe flow of money received in a particular period of timethe stock of everything owned that has a value at a particular point in timea positive concept that can be measured by the extent to which people's incomes and wealth differ (using the Lorenz Curve and the Gini-co-efficient)-absolute and relative poverty may remain high which can undermine social cohesion Forty million US jobs lost. Progressive taxation system: reduce inequality, can increase consumption. actions taken by buyers and sellers to communicate quality in a world of uncertainty. Since then, those features have become standard. How do rises in living standards have unintended consequences?sixty years ago, lower-end housing lacked basic amenities like indoor plumbing. refers to a situation where the region lacks the resources to have self-sustaining economic growth . It is an essential aspect for people to become part of a society. Wealth is a ____ variable.Is income or wealth more unequally distributed in the US?A situation where either buyer or seller has more information than the other about what is being exchanged.People with higher risks than average seek out the insurance to cover that risk. families who spend above 30% of their income on housing risk having too little money for other essentials How can personal problems interfere with housing situations?How do children bear the burden of housing crisis?1more likely to move, it makes children the most vulnerable ending in sexual, physical, verbal abusedeepened the existing housing crisis - as the number of people competing for rental units grew, the poor were increasingly squeezed by rising rents or pushed out of the rental market altogether, forced to double up or couch surf.
But, will increase relative poverty initially, possible policy conflicts, only reduce absolute poverty if those in absolute poverty benefit, only reduce relative poverty if low wages/benefits/the living wage rise faster than average wages1. Original income (wages, pensions and investment income)Factors influencing the distribution of wealth.
Unemployment: the capping of benefits, unemployment trap = increase in wages results in a tiny marginal increase in income as they lose means tested benefits so its not worth itHorizontal equity = when people in the same circumstances are treated the same way1. As Chapter 9 “Sexual Behavior” explains, a major reason for many of the problems families experience is stress. It could make them less willing to help around the house for free, but expect payment. The psychological and physiological unintended consequences … 1. We pay our children £3 to clean the car.