The poor have not developed strong interest groups

The poor have not developed strong interest groups that can put pressure on decision
makers and result in policies that can benefit them. Interest group activity requires time,
money, and organizational skills; all of which the poor do not possess. Compare the
elderly in the United States to the poor. The elderly have achieved favorable policies
(social security and Medicare) in large part because of their strong organizations (AARP)
and voting power. The poor, on the other hand, do not have any equivalent interest group
organizations and do not generally vote as a block, if they vote at all. The poor depend
primarily on their own informal and fragmented networks. Strong networks and
membership-based organizations extending beyond the family and immediate community
are essential to help poor people gain access to other assets and resources.
10. Capabilities
Lack of information, education, skills, confidence. While it is commonly recognized that
information is power, poor people are cut off from information about their rights as
workers, pensioners, and citizens, as well as about jobs, resources, and assistance
programs.
Education also often works against the poor. In the United States, schools in poor
neighborhoods are of lower quality – poorly staffed and equipped. The poor often do not
learn the value of education or lack the confidence to succeed. Higher education is an
obstacle due to cost. Scholarships are not always available. Furthermore, many of the poor
do not see the benefit of higher education if they are able to get a job, albeit low paying,
without it, especially if there is a more immediate need.
The World Bank study showed that faced with harsh realities, many poor parents cannot afford
to send their children to school or keep them in school. Almost everywhere, poor people
want to educate their children but calculate that the returns to their investment are
unrewarding.
Conclusions:

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ISS 225 Power, Authority, Exchange Poverty
The World Bank study concluded that poor people are not the problem. Nor is the culture of
poverty. Poor people work hard, are remarkably resourceful, and show grit and determination in
providing for their families. All those committed to poverty reduction must ask themselves
three questions: How can we build on what already works, design institutions, and change
institutional character so that they support poor people's own initiatives to lift themselves out
of poverty? How can poor people's connectivity with institutions be increased so that they are
heard and represented in programs and policymaking at the local, national, and global levels?
How can the knowledge, resources, and power at the local, national, and global levels be used
to support poor people's own efforts?
Important Terms:
Social welfare policies

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ISS 225 Power, Authority, Exchange Poverty
Poverty line
Income distribution
Relative deprivation
Income
Wealth
Culture of poverty
Progressive tax
Proportional tax
Regressive tax
Transfer payments
Social Security
Medicare
Medicaid
Aid to Families with Dependent Children
Temporary Assistance to Needy Families
New Deal
Great Society