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41 votes

People pathologically hoard so much cash that they impoverish the entire nation

But when people pathologically hoard so much cash that they impoverish the entire nation This sentence seems to imply that we should fault the rich not because they are rich, but because they do ...
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14 votes

People pathologically hoard so much cash that they impoverish the entire nation

Her position isn't quite untrue. If you define poor and rich relatively, you cannot have "poor" without having "rich." However, this has little to do with hoarding. We often think of money in terms ...
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11 votes

Influential Theory in the Economics of Poverty

To extend @Majoko's comment, you may be very interested in the book Poor Economics which discusses many of the issues you note. It specifically discusses issues with theory, and of course has a lot of ...
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11 votes

People pathologically hoard so much cash that they impoverish the entire nation

The argument is largely based of the following premise: You have 10 Million Dollars. Say in one case you gave it all to 1 already rich millionaire, and in the other case you gave $1000 to 10,000 poor ...
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9 votes

People pathologically hoard so much cash that they impoverish the entire nation

This particular statement posted is actually two separate statements that are being conflated despite not being related: Statement 1: People who collect many newspapers or cats are called "nuts&...
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  • 191
8 votes

Why some countries are wealthier than others?

One argument brought forward (it is a generalization/argument for lack of infrastructures) is the Acemoglu-Robinson hypothesis of extractive versus inclusive institutions. Long-story short: some ...
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5 votes

People pathologically hoard so much cash that they impoverish the entire nation

When people hoard cash they actually increase the value of everyone else's cash. Why? Because if they didn't hold it then some of it would instead be sold to the investors who support the price of ...
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4 votes

Influential Theory in the Economics of Poverty

Below I'll give you a partial answer by talking about research on poverty traps. Before that, though, let me point out that it is a bit difficult to find any theory that is not motivated by ...
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4 votes

Influential Theory in the Economics of Poverty

If you are looking for a light-weight, definitely somewhat partisan take on development economics (I realize this is only part of what you want) check out The Elusive Quest for Growth: Economists' ...
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4 votes

Can savings and poverty coexist?

First we must address the nature of savings. Savings are not bad or good per se. It depends on the context. It is true that in the short run, increased savings will lower consumption, thereby lowering ...
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4 votes

People pathologically hoard so much cash that they impoverish the entire nation

This assumes they store their own money in their house. Like a room full of bills. If that's the case, if billions of dollars are stashed. Then it technically would reduce the supply of money and thus ...
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4 votes
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Is poverty rightly measured internationally?

This measure of poverty depends on your definition of basic needs and local prices. Argentina is a good example for how local prices matter. It is widely accepted that official price and inflation ...
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4 votes
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How many people in the world were living below 15 dollars a day in the last decades?

Most of the "official" statistics compiled in international organisations use some thresholds like the one shown in the graph. Common for instance are the one by the World Bank (data here and report ...
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3 votes

Are American poverty rates increasing? What about global poverty rates

US A snapshot of Poverty for the US is here. The key is Figure 5, which shows alternative measures of poverty, using different data and methods. (see text for details). Basically, they show that ...
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  • 8,477
3 votes

Is there a study of world poverty rates over time pre 1800?

This is only for Europe unfortunately, but Bob Allen has a famous paper in which he presents reconstructed data for real wages in different European cities from 1350 all the way to 1799: Allen, ...
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3 votes
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Is this a realistic solution to world poverty?

I am afraid the solution to world poverty will not be two pages long. Some flaws: You cannot simply give poor people in other countries money, their government controls their financial system. Even ...
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3 votes
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Why some countries are wealthier than others?

While a lack of infrastructure and public goods may explain poverty in a short-term perspective, it is widely considered that institutions are the key factor in the long term (how could infrastructure ...
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  • 7,270
3 votes

What's the Cause of Mexico's Poverty Rate?

High poverty rates are generally a result of two factors A) Low per capita income (GDP / capita) B) High inequality (frequently measured as the Gini coefficient) There are multiple potential ...
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3 votes
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Gapminder's Dollar Street and the role of self-supply

On Gapminder's website they write If you have a question, maybe it's already answered in our Q&A. Q&A The underlined text links to a Google document, which answers several questions. ...
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3 votes
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What idea was proposed to remove global poverty?

Unlike many Nobel prizewinners, this year's award was not really given for a central theoretical development. All three of the winners have made important theoretical contributions relevant to ...
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2 votes

$1.25 PPP per day poverty threshold - What precisely does it mean?

A partial answer : I m not sure what measurement the World Bank would recommend, but I suspect that in practice, the expenses that are taken into account to measure whether one is below or above the 1....
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2 votes

Can savings and poverty coexist?

At the level of an individual household it can be rational for poverty and savings to coexist. There are degrees of poverty. In terms of food, there is having a somewhat varied and adequate diet ...
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  • 7,270
2 votes

What is a good AUSTERITY indicator?

If it is about European Union, it would make sense to look at austerity as a response to the debt crisis. I would measure austerity not as the level of government debt, but as the change in levels of ...
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2 votes

People pathologically hoard so much cash that they impoverish the entire nation

I think that your aunt is confusing cause and effect here. Rich people staying rich is seldom the cause of poverty, rather it is a parallel effect. The cause of much poverty and much wealth is the ...
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2 votes

How many people in the world were living below 15 dollars a day in the last decades?

I found a tool in the World Bank website which allows you to set any income boundary, any country, years from 1980 to 2015 and display the data in charts to see how many people are under that boundary....
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2 votes

How is infant mortality rate an indicator of living standards?

I am just guessing at this, but I have not heard of any evidence that any culture had a large percentage of parents that wanted their babies to die. Thus the “good parent” ratio is probably not ...
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1 vote

People pathologically hoard so much cash that they impoverish the entire nation

One of the most fundamental aspects of economics is scarcity. We have a limited amount of material resources. Not everyone can have everything. However, through specialization, some become very good ...
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1 vote

Are American poverty rates increasing? What about global poverty rates

I am unsure about rates in Europe or the United States. In any case one can debate about how poor "the poor" in Europe and the US really are compared to people that have to survive on a dollar a day (...
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1 vote

Why do cities with rich areas still contain poor areas?

In addition to what Jeremy and Kitsune said: Henry George's Progress and Poverty looked at this problem of poverty amidst plenty more than hundred years ago.
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