Poverty Inequality And The Working Class

976 WordsNov 18, 20164 Pages
Inequality and poverty are thoroughly interconnected. Therefore, both the size and distribution of the economic pie are relevant in a discussion of poverty. Poverty, as measured by the Multidimensional Poverty Index (MPI), is comprised of three dimensions: health, education, and standard of living. According to this measure, approximately 1.7 billion people worldwide are “multidimensionally poor” (Hick, 2014, p. 125). While addressing poverty, it is also essential for one to examine the inequality that exists within society. Poverty, inequality, the working poor, and capitalism are all concepts that interrelate and affect one another. Poverty and the working class are results of the inequality that is produced by a capitalist society. Nevertheless, the connection of poverty and inequality is still largely debated. Economists often argue the relevance of including inequality in studies of poverty. Feldstein and Milanovic are examples of two economists who hold differing views of distributional matters. Feldstein argues that policy should address only poverty, disregarding inequality. To support his argument, Feldstein (1999) refers to the Pareto Principle which infers “that a change is good if it makes someone better off without making anyone else worse off” (p. 34). Therefore, Feldstein (1999) argues that an increase in higher incomes is beneficial, adding to the wealth of some without decreasing the wealth of others (p. 36-37). Finally, Feldstein (1999) infers that policy
Open Document