Theories of Poverty

Theories of Poverty mindmap

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Theories of Poverty by Mind Map: Theories of Poverty

1. Keynesian/Neoliberal

1.1. "overall growth in income is ultimately the most effective element in poverty removal...unemployment, viewed as a major cause of poverty, is largely seen as involuntary and in need of government intervention to combat it" (D&S, p. 2)

1.2. Bradshaw

1.2.1. Economic Structure

1.2.1.1. "look not to the individual as a source of poverty but to the economic...system that causes people to have limited opportunities and resources with which to achieve income and well-being" (p. 16)

1.2.1.2. "the working poor is increasingly seen as a wage problem linked to structural barriers preventing poor families from getting better jobs, complicated by limited numbers of jobs near workers and lack of growth in sectors supporting lower skilled jobs" (p. 16)

1.3. Brady

1.3.1. Structural

1.3.1.1. “'structure' refers to macro- and meso-level demographic and economic contexts representing available opportunities and constraints" (p. 161)

1.3.1.2. "demographic and economic changes beyond the control of the government...structuralists view poverty as the unfortunate byproduct of contextual factors that overwhelm what can be done" (p. 168)

1.4. Solutions

1.4.1. Monetary & fiscal policy to reduce threats to economic security

1.4.1.1. Mitigate inflation, national debt, asset bubbles

1.4.2. Raise taxes

1.4.2.1. Increase employment opporutunities

1.4.2.1.1. Government-assisted local and national economic growth and development programs

1.4.2.2. Increase access to resources

1.4.2.2.1. Alternative business, housing, schooling programs

2. Marxist/Communist

2.1. "economic growth alone may be insufficient to lift poor people out of (relative) poverty, because those who belong to certain classes may not reap any of the benefits of overall income growth" (D&S, p. 3)

2.2. "poverty is a moral as well as a technical issue" (D&S, p. 3)

2.3. Bradshaw

2.3.1. Political Structure

2.3.1.1. "look not to the individual as a source of poverty but to the...political, and social system that causes people to have limited opportunities and resources with which to achieve income and well-being" (p. 16)

2.3.1.2. "research confirms the linkage between wealth and power, and shows how poor people are less involved in political discussions, their interests are more vulnerable in the political process, and they are excluded at many levels. Coupled with racial discrimination, poor people lack influence in the political system that they might use to mobilize economic benefits and justice" (p. 16)

2.4. Brady

2.4.1. Political

2.4.1.1. "political choices governments can and do make to ameliorate [or exacerbate] poverty...view poverty as the willfully chosen outcome of state (in)action when something could be done" (p. 161)

2.4.1.2. "poverty is a political outcome driven by power relations over and collective choices about how to distribute resources" (p. 164)

2.4.1.3. "Institutionalized power: Institutions reflect the residue of the power of collective actors in the past, and institutions continue to be consequential even without active maintenance by collective actors" (p. 164)

2.4.1.4. Critical of "how states discipline, regulate, supervise, and displace the poor" (p. 166)

2.5. Solutions

2.5.1. Economic and labor policies

2.5.1.1. minimum wage/equal pay laws

2.5.1.2. unionization

2.5.1.3. raise taxes

2.5.1.3.1. universal healthcare

2.5.1.3.2. welfare programs

2.5.1.3.3. redistribution of wealth

2.5.2. Sociopolitical movements

2.5.2.1. environmental justice

2.5.2.2. criminal justice reform

2.5.2.3. voting rights/electoral systems

2.5.2.4. educational equity and opportunity

2.5.2.4.1. universal pre-school

2.5.2.4.2. universal college

3. Classical/Neoclassical

3.1. Bradshaw

3.1.1. Individual

3.1.1.1. meritocracy "any individual can succeed by skills and hard work, and that motivation and persistence are all that are required to achieve success" (p. 13)

3.1.1.1.1. "blame individuals in poverty for creating their own problems and argue that with harder work and better choices, the poor could have avoided (and now can remedy) their problems" (p. 12)

3.1.1.2. "They [welfare programs] have introduced a perverse incentive structure, one that penalizes self-improvement and protects individuals against the consequences of their own bad choices" (Gwartney & McCaleb, 1985, p. 7 in Bradshaw, 2007, p. 12)

3.1.2. Culture of Poverty

3.1.2.1. "government welfare perpetuated poverty by permitting a cycle of "welfare dependency" in which poor families develop and pass on to others the skills needed to work the system rather than to gain paying employment" (p. 14)

3.2. Brady

3.2.1. Behavioral

3.2.1.1. "the poor are poor because they engage in counterproductive, poverty-increasing behavior or risks like single motherhood or unemployment" (p. 158)

3.2.1.2. "generous social policies trigger moral hazards and welfare dependency and disincentivize against poverty-reducing behaviors like work and marriage" (p. 158)

3.2.1.3. "Culture explains the counterproductive behavior that causes poverty...culture and behavior are 'processes and mechanisms that lead to the reproduction of poverty'” (p. 15)

3.3. Solutions

3.3.1. Reduce size and availability of welfare programs

3.3.1.1. Lower taxes

3.3.1.1.1. More after-tax household income

3.3.1.2. Less dependency on government welfare

3.3.1.2.1. More employment

3.3.2. Free markets = lower taxes and less govn't regulation

3.3.2.1. Job creators will make more and better-paying jobs

3.3.2.1.1. Higher incomes + Lower taxes = Less poverty

3.3.2.1.2. Higher GDP