Why hasn't the poverty rate fallen in four decades, despite society's massive and varied efforts? The notable philosopher Charles Karelis contends that conventional explanations of poverty rest on a mistake. And so do the antipoverty policies they generate. "The Persistence of Poverty" proposes a new explanation of the behaviours that keep people poor, including unemployment, abandoning school, failure to save, and breaking the law. This provocative, thoughtful book finds a hidden rationality in the problematic conduct of many poor people, a rationality long missed by economists. Using science, history, fables, philosophical analysis, and common observation, Karelis engages us and provides us with a deeper grasp of the link between consumption and satisfaction. He thereupon provides us a new view of distributive justice and fresh policy recommendations for combating poverty. "The Persistence of Poverty" is the 'Big Idea' book that is overdue. With Karelis' bold work and original insights, the long-stalled campaign against poverty can begin to move forward once more.
What poverty is 1
2 Behavioral factors in poverty 12
3 Some theories 27
4 A closer look at the inefficiency argument 49
App Using indifference curves to identify utility-maximizing allocations 58
5 A new way to rationalize the conduct that prolongs and worsens poverty 61
App Further exploration through graphical analysis 92
6 Responses to challenges and questions 102
App The case of Alfred Marshall 130
7 Policy : what should we do differently if we believe that marginal utility is increasing amid scarcity? 132
8 Economic justice reconsidered