
The poor don't work because they are economically rational - redux - Nimi
http://www.chrisstucchio.com/blog/2014/why_the_poor_dont_work_redux.html?utm_medium=rss&utm_source=rss&utm_campaign=rss&utm_reader=feedly
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dweinus
From the original article: "If you exclude children from the numbers..., then
36% of poor people work at least 27 weeks/year" The argument that the poor
don't want to work hinges on this number. This number does not take into
account the disabled, retired, or otherwise unable to work who
disproportionately fall into poverty.

As someone formerly below the poverty line, I take great issue with the
statement that the poor do not want to work.

To put this back in terms of the updated graph from the CBO: even a menial job
offers the potential to possibly move out of the poverty range with time.
Between $20k and $30k the Disposable Income line tracks very closely to the
Real Earnings line, meaning that the incentive is high. In a more practical
sense, the difference between having $20k in disposable income and $28k is
actually very palpable. Living in poverty is a hardship that defies the
rationality he suggests.

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pessimizer
> then this means that people who’s labor income will lie between $0 and $20k
> will have no incentive to work.

This is called begging the question.

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jessaustin
Are you referring to the implicit assumption that consumption is the primary
incentive for a person to work? That's pretty non-controversial among
economists, but if you're a philosopher or something you can certainly argue
the point.

Anyway, that assumption about consumption is really only the _premise_ of TFA.
The sentence you quote is the implication of that premise and some statistics.
Argue with the premise, argue with the statistics, argue with the implication
if you want, but I just don't see the circularity here.

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TrainedMonkey
I do not think rational is the right word here. One way you can look at it
either slave away and make few dollars more or do nothing and get about same
outcome.

This is not rationality, this is hopelessness and despair.

~~~
brg
"Rational" is an unfortunate choice of term, but it was the term the field of
economics has used for quite some time. It is best to separate in your mind
the idea of a rational actor and the colloquial connotations the term carries
with it.

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mdemare
Discussion earlier today about the first article:
[https://news.ycombinator.com/item?id=7076121](https://news.ycombinator.com/item?id=7076121)

