Generic Theories of Poverty
A. What difference does it make whether poverty is caused by case or generic causes?
Answer: It makes a lot of difference.
Example #1: Suppose somehow we significantly reduce racial discrimination. Will total poverty fall?
Case answer: Yes.
Generic answer: No. Poverty will only be redistributed.
Example #2: Suppose we give poor people effective skill training and compensatory education. Will total poverty fall?
Case answer: Yes.
Generic answer: No. Poverty will only be redistributed.
B. What can you do about poverty?
1. If case theories are correct: Address the individual cause of poverty. For example, if poverty is caused by inadequate skills or education, then the solution is skill training or compensatory education. If poverty is caused by discrimination, then the solution is antidiscrimination policies.
2. If generic theories are correct: Improve the quantity and quality of jobs.
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