Question for Political Scientists and Economist types -all other welcome too!

[Bonobo]

I once had a Political Science Professor who said "Never forget that the cure for poverty is money."

Does that make any sense?

We spend 1 trillion dollars on Iraq.

What would have happened if they had distributed it to the poorest and low middle class but required it to be spent in the US?

[MindPilot]

1. I'm guessing your poly-sci prof was a Libertarian.

And had a somewhat simplistic view of the issue.

I'm not a political scientist, or an economist, or any other "ist".

But I think he was wrong in that lack of money is only one manifestation of poverty and its myriad of causes.

[Bonobo]

3. I don't think so and I think he was phrasing it simplistically to make a point.

Would a person in poverty still be in poverty if they were given 1 million dollars?

[MindPilot]

10. I think the short answer is yes

I was having a conversation with a couple co-workers about this very thing yesterday which is why I decided to respond to your post. It was sparked by a talk-show host (liberal) who was discussing a report about how NBA players who are recruited from very "modest" backgrounds suddenly find themselves very wealthy and then a few years later, bankrupt. Same with some lottery winners.

So the whole point was there is a lot more to poverty than just not having money. I think poverty in many ways and for many reasons is really a lifestyle (I hate that word, but I can't think of a better one right now.) of despair and hopelessness that people fall into generation after generation which--again for a myriad of reasons--becomes very difficult from which to break free. Chris Rock summed it up in a very succinct rhetorical question: "What part of being poor keeps you from picking up the trash in your front yard?"

I spent part of my childhood in a Kentucky trailer park, so I have a little first-hand experience.

[Angela Shelley]

2. "If" the money wasn´t borrowed money ...

then the population would have spent the money on overly priced goods, and then wanted even more!

[flvegan]

4. Depends on the context of the statement.

I wouldn't think that your prof meant that literally "the cure for poverty" is to throw cash at it. However, in the context that if you have an impoverished area/community, then the cure can be by bringing industry/jobs to the area...which might take money to do.

The trillion dollars in Iraq would never have been distributed to the poor here in the US. New Orleans is proof of that.

[Bonobo]

6. Very good point. Understood.

But just to play, what WOULD happen if there was just a huge injection of cash. Literally throwing money at it? With the smallest of conditions, like it had to be spent somewhat locally or at least in the US?

Sort of a "Spurt Up" instead of a "Trickle Down"?

[flvegan]

8. Problem is, WHAT would people buy?

Give $1,000 to someone, and they may spend it at Wal Mart. Who does that help? Wal Mart and the folks that make the crap sold there, ie China. Granted, that person has $1,000 worth of "stuff" that they might not otherwise have had, but that doesn't fix any kind of poverty.

Now, if you threw $1 trillion at services for the eligible poor (health care, housing, education) that's an investment in your people and economy. Another idea is to put $1 trillion in realistic incentives for businesses to set up in areas of poverty with 99-year lease type binding agreements that all jobs stay in the area. Not terribly realistic, as our government is far too crooked to play that role honestly.

[Bonobo]

9. Isn't it partially a chicken/egg thing?

There's nothing to buy in the area except Walmart because that is a symptom of the sickness. Totally non-functioning communities with no local infrastructure and businesses. No mom & pop shops because no money. No bakeries, no local restaurants, no local hardware store, no ice cream shop, no downtown, no downtown shoppers, etc.

With that money, people could purchase, beautify and improve their homes and area. BUILD those mom and pop shops and make a downtown where they can walk around and spend the money, etc.

[The2ndWheel]

5. Isn't money the cause of poverty?

If you didn't look at the world through the eye of money, how would you know what poverty is?

[Bonobo]

7. That is a wonderful thought and true to an extent.

But without a chicken house, an acre of farmland, sheep and cows nearby -and about 3 billion less humans, what else do we have?