(04-15-2009 08:10 AM)emmiesix Wrote: As I have stated elsewhere, I firmly believe that helping the lowest classes get out of poverty has a net positive effect all the way up the food chain, due to decreased crime and increased productivity as a whole.
The tougher question is, what policies are most effective in helping the lowest classes get out of poverty?
One could aruge that the best way to help people out of poverty is to give them cash. As everyone from Daniel Moynihan to anyone who works with the the homeless will tell you, it's an empirically false argument, but it remains popular.
One could argue that the best way to help people out of poverty is a combination of:
- strong community policing to get criminals off the streets, so that non-criminals in poor neighborhoods (which is most of the people) stand a chance of a normal life.
- small schools with tough academic and disciplinary standards, and education assistance (curiously they are called Pell Grants when given to middle-class college students whose futures don't really depend on them, but "vouchers" when proposed for poor kids whose do) to allow kids to attend such schools right now, without waiting for low-performing schools to somehow fix themselves;
- a business climate that promotes small-business entrepreneurship, which creates the vast majority of jobs.
- trade policy that encourages international trade as much as possible, both to reduce the costs of ordinary consumer goods (which take up a disproportionate share of poor people's income) and to increase employment opportunities.
The above are not usually thought of as anti-poverty measures, but they are. For the most part, they also have the curious virtue of actually working. Free trade has done more to make the necessities of life, especially food, affordable than any other policy in the history of mankind; a testament to its success is that our present age is the only one in history in which poor people are fat.
I wonder if the efficacy of such policies partly explains why they are not very popular among anti-poverty "advocates". After all, if you actually reduce poverty (particularly through policies that do not treat the poor as a special class), you diminish your own constituency, and no interest group is terribly eager to do that.
Obviously, the two policy sets are spectral opposites, politically. Other policies that could be effective against poverty would include:
- good mass transit. Facilitating people getting to work is good for business.
- strong public-health (as distinct from curative medicine) programs. Keeping people healthy is good for business.
- anything that makes schools better.