Poor Economics

Author: Lu Zhoulai
Publisher:
Publish Date: 2002-06-01
Features: "Below the subsistence line (or poverty line), the negative utility of the poor will amplify exponentially, damaging the total utility of society, undermining the economy, and also harming the utility of the rich. Reducing the utility of the rich, however, will not lead to a exponential decline in their utility (or it will be relatively mild). Therefore, national redistribution should rightly favor various vulnerable groups, including the poor, physically disabled, mentally unhealthy, low-skilled, low-educated citizens, and others with fewer opportunities for success."—Excerpted from Poverty Economics in this book. This is a delightful book with positive value. The author truly speaks for the poor, and his character deserves respect. To speak for the poor is something no one will reward you for, and it seems no one is currently giving you votes for it. The author's professional capabilities cannot be reflected in this popular book; what is reflected is the author's conscience. If you have read Poverty Economics, you will know that my reflections are mostly inspired by the reading of this book, and I have not yet denied any of the statements made in it. The words in this little book are part of the author's economic notes written over the years. The author had two considerations in compiling and publishing this book: First, economics is not as young in China as it is elsewhere. Through writing these short pieces, it can help this very young discipline reach the general public, and in doing so, it can break the misconception among the Chinese people that economics and economists in China do not match their status and contributions. Second, as the famous new institutionalist scholar Douglass North once said: "Economists should not tell people what is good or bad, nor should they tell people what they should do. Economists can only reveal the costs and benefits of different variables so that citizens in a democratic society can make better choices."