Poor people make rational decisions based on their circumstances from "summary" of Poor Economics by Abhijit Banerjee,Esther Duflo
The idea that poor people make rational decisions based on their circumstances may seem counterintuitive to many. It goes against the common belief that poverty is a result of poor decision-making or laziness. However, when we take a closer look at the daily lives of the poor, we begin to understand why they make the choices they do. Living in poverty means facing a constant struggle to meet basic needs such as food, shelter, and healthcare. With limited resources and a lack of financial stability, the poor must carefully consider every decision they make in order to survive. This often leads them to prioritize immediate needs over long-term goals, as they simply cannot afford to think too far ahead. For example, a poor farmer may choose to sell his harvest at a lower price than he could get later in the season because he needs the money to feed his family that day. While this decision may seem shortsighted to...Similar Posts
Thorstein Veblen's theories on conspicuous consumption shed light on the role of status symbols in society
Thorstein Veblen's analysis of conspicuous consumption offers a unique perspective on the significance of status symbols within...
Investing in your personal development is just as important as investing in financial opportunities
In the game of life, there are two main ways to achieve success: by investing in financial opportunities or by investing in per...
Impact of climate change on the economy
Climate change has become a significant concern for economies worldwide due to its potential impact on various sectors. The eco...
Mapplethorpe's illness
Robert was not well. It wasn't just a passing cold or a simple case of the flu. No, his illness was something more insidious, m...
Seeking redemption and forgiveness
Throughout the story, the characters are constantly grappling with the idea of seeking redemption and forgiveness. They each ca...
Prosperity was a defining characteristic of postwar America
In the years following the Second World War, the United States experienced a period of unparalleled economic growth and materia...
Human kindness offers a ray of hope in the darkness
In Annawadi, a slum nestled in the shadows of luxury hotels near the Mumbai airport, darkness is a constant presence. It is not...
Sustainable development requires systemic change
The notion that sustainable development necessitates systemic change is a fundamental guiding principle in efforts to address p...
The power of high expectations in helping children succeed
High expectations are a powerful force in shaping children's outcomes. When adults believe in a child's potential and communica...
Human wellbeing depends on a healthy environment
Human well-being is intricately linked to the health of the environment that sustains us. Our physical and mental health, our a...