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Structural Theory of Poverty

Structural Theory of Poverty - profit rather than...

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Structural Theory of Poverty • In contrast to blaming the biological or cultural deficiencies of the poor, the structural theory states that how society is organized creates poverty and makes certain kinds of people especially vulnerable to being poor. Institutional discrimination refers to the situation where the customary way of doing things, prevailing attitudes and expectations, and accepted structural arrangements work to the disadvantage of the poor. • Further, the basic tenet of capitalism--who gets what is determined by private
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Unformatted text preview: profit rather than collective need--explains the persistence of poverty. Employers are constrained to pay their workers in the least possible in wages and benefits. Only a portion of the wealth created by labor is returned to it; the rest, referred to as surplus value, goes to the owners for investment and profit. An abundance of laborers helps to depress wages. If costs can be reduced, technologies are introduced to replace workers....
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