-
Economics of poverty
- May 21, 2009 at 5:27 PM
- By
- Comments (5) Total Views (145) Everyone can see this journal post.
I've just read a fascinating article in the Washington Post on The High Cost of Poverty: Why the Poor Pay More. Poor? Pay Up. Having Little Money Often Means No Car, No Washing Machine, No Checking Account and No Break From Fees and High Prices.
It brings up a lot of points that when added together form a big problem for the poor. For example, people without cars are dependent upon their corner stores for their food, but prices there are quite a bit higher than at Safeway ($3.79 vs. $1.19 for a loaf of wheat bread). If you don't have a checking account, you'll have to pay and extra $3 to get a money order to pay your electric bill; a check cashing place could take 10% of your check to pay your phone bill. The rent on your apartment may cost more than a mortgage on a house would, but you don't have the money for a down payment or credit for a loan.
Another interesting component to this that they focus on is the amount of extra time that it takes to do things. Time waiting in line here, time waiting in line there. Waiting for the bus. Waiting for the laundry to be done at the laundromat.
We all know that little things mean a lot, and that every little bit helps. It's the accumulation of these little things that can keep you from getting a leg up. If you read this article, what solutions can you think of?
Comments:
I think it's an interesting question. My personal solution for being poor and paying out the ass for it (in so many ways)???
Going to school and getting a good job...
I'm not sure that it is the responsibility of the business to have to cut their fees because people who happen to use them don't have a lot of money.
I like to think I'm a liberal hippy freak, but sometimes I have a right-wing blond streak that comes out about this subject.
yeah, I kinda have to agree with sapient on this one. A vast majority of the perpetually poor I know are quite fine with being poor and whining about being poor. Sadly there isn't much you can do about that unless they want to get out of the "poor rut". But that often requires work... ok I better stop my tangent there before I say something mean and unlike me...
Going to school is a given, but finding a good job isn't as easy as it sounds. I graduated with a 3.66 GPA and haven't had a nibble. Lots of thanks but no thanks except for insurance companies. It's definitely not for lack of trying.
The reason I mention businesses doing something is because they tend to run away from areas they deem unacceptable. There is an area not far from here that has hospital, hotel, several churches, schools, and several neighborhoods but no grocery store. The last one in the area closed and no other major chain is willing to set up shop in the area. It's growing, with 65% of the revitalization plan complete. If I had the cash, I'd open one. It would bring an accessible, affordable store to the area, create jobs, and help the community. The goodwill generated by the store opening would help the business, too. Everyone could win.
I agree that some smart redevelopment is required. I know that where I live, there have been some experiments about different business models for grocery stores. For instance, they found out that if a supermarket offers free transportation, their profit margin increases; this also improves the health of the community. They also lose less shopping carts, which can cost a small grocery store $300,000 a year! Another experiment reconfigured an inner city grocery store so that it offers more fresh produce. They brought in a marketing expert to redesign the layout of the market and the cases, using a grant from the state. The store owner contracted with local farmers, sometimes saving 2/3 from the wholesale price.
Already a member? Click here to log in
The first things I can think of are from the business side. More centrally located grocery stores and cheaper money orders to start.
- sherriet
Message Friend Invite