Does Poverty Motivate People?

[WinePusher]

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First let me say that when I see and hear people like this it makes me think that liberals and the occupy wallstreet crowd got it right...

Obviously what he's saying is pretty atrocious. Obviously poverty is NOT good, it's a very bad thing that needs to be reduced and completely obliterated. But, putting aside this guys absurd and offensive comments, I've managed to glean two points in what he's saying:

1. Poverty motivates people to do better in life (this point was also made by Benjamin Franklin).
2. Capitalism has been the only socioeconomic system that has significantly reduced poverty throughout the globe.

I think it's a fact that Capitalism has done a great deal of good for the poorer classes of society, but the first point about poverty being a motivator remains to be seen. I would also say that poverty is by in large a combination of two factors: personal responsibility and circumstances beyond personal control. You're either poor because you got dealt a crappy hand of cards (in this case you have no control over the situation), or you're poor because you're lazy and not hard working (in this case you do have control over your situation). This is a crucial distinction that needs to be made because I think that all of us would have no problem providing assistance to people who are poor because of circumstances beyond their control. But when it comes to people who are poor by choice I think it's safe to say that all of us would have a problem giving them money since they're perfectly capable of making money themselves.

Questions: What is the cause of poverty? Does poverty motivate people to do better in life? How can poverty be reduced?

[WinePusher]

Now as far as capitalism bringing people out of poverty that is only really a matter of perspective. I wouldn't feel comfortable saying that is a true statement.

Why? If you were to look at a developing nation where poverty is highly prevalent most economists would suggest introducing neoliberal, free market, capitalist policies in order to raise the living standards of that country. Neoliberlaism and Capitalism has worked extremely well in the case of Latin America and the other Newly Industrialized nations (Hong Kong, South Korea, Taiwan and Singapore). Latin America, along with the Newly Industrialized nations, suffered from widespread poverty before the introduction of capitalism. This is because capitalism is a system that fosters mass production and consumption, which is neccesary for poverty reduction.

Free trade produces beneficial gains for consumers and producers. Deregulation increases production and consumption levels. Lower taxes increases production and consumption levels. These are all features of capitalism. The opposite of all this (restricted trade, regulation and high taxes) reduces production and consumption and this subsequently raises poverty rates. This was the entire point of Adam Smith book-The Wealth of Nations. A nations wealth is derived from the free market. Specifically, the division of labor allows workers and firms to specialize and increases their productive capacity and the invisible hand serves as a market regulation (and disposes any need of government regulation) that governs the economy. On the other hand, socialism and socialist policies along with mixed economies are not clearly defined and impede market processes that would bring about further reductions in poverty. Poverty is the fault of socialism.

[The Me's]

[Replying to post 1 by WinePusher]

First let me say that any time the issue of poverty enters political discourse, you really ought to hide your wallet. Politicians use issues that bring them support, and when poverty is the issue, there is emotional blackmail to follow.

Now your questions:

What is the cause of poverty?

The causes are too numerous to evaluate. Lack of motivation is probably the biggest contributor, but in Mexico in 2005, the hurricane season caused widespread homelessness among very motivated people.

Does poverty motivate people to do better in life?

Without a doubt. The most innovative people I've ever met were homeless teens and young adults. Every day was full of opportunity, and they didn't shy away from concepts that to you and me would sound ridiculous, but to them was a possibility of a better life.

Think of it this way:
If YOU found yourself homeless tonight, you would have a very slim chance of surviving more than 3 days. They can survive in their world and in ours.

How can poverty be reduced?

Poverty will always exist simply because wealth exists.

The only cure is to teach self-sacrificing generosity. There's no such thing as a government program that can end poverty; some will always slip through the cracks.

(One of the causes of poverty is the crime of child molestation. A man who is convicted goes to prison, serves his time, then gets out. Upon release, he's likely to find universal rejection. The homeless that I worked with included many of them, and they literally had no hope of re-entering society because of the stigma and the public humiliation of registration. In their case, the government was the CAUSE of perpetual homelessness and poverty among felons.)