CH5 Poverty - * Poverty, Inequality, and Social Welfare *...

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* Poverty, Inequality, and Social Welfare * Why bad about high inequality? - Extreme income inequality leader to econ inefficiency - Lower overall rate of saving in the econ - Lead to inefficient allocation of asset  - Inequality above the poverty line is that extreme income disparities undermine social  stability and solidarity - Facilitate rent seeking, including actions such as excessive lobbying, large political  donations, bribery and cronyism  - Generate view of unfair Rapid growth is bad for poor people,because they would be bypassed by the  structural change of modern growth. The conderns that concertrated efforts to lover  poverty would slow the rate of growthwith the arguement that countries with povert  would slow the rate of growth. * Growth and Poverty Five reasons why policies focused toward reducing poverty levels need not lead to a slower  rate of growth - Widespread poverty creates conditions in which the poor have no access to credit,  unable to finance children’s education - The rich in many contemporary poor countries are generally not  noted for their  frugality or for their desire to save and invest substantial proportions of their incomes 
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This note was uploaded on 11/02/2010 for the course ECOS 3002 taught by Professor Dulip during the Three '10 term at University of Sydney.

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CH5 Poverty - * Poverty, Inequality, and Social Welfare *...

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