Question

According to Gans "The Functions of Poverty" how is poverty beneficial and to whom is it beneficial for? Provide an example of an economic benefit of poverty.

Answer 1

Herbert J. Gans' "The Functions of Poverty" suggests that poverty can provide economic benefits by ensuring a low-wage labor force for certain jobs. The discussion on federal antipoverty programs highlights the need to avoid creating a poverty trap in assistance efforts.

Step-by-step explanation:

According to Herbert J. Gans in his work "The Functions of Poverty," poverty is beneficial to various non-poor groups in society and the economy. For example, the presence of poverty provides a low-wage labor force that is willing to do dirty, dangerous, and undignified jobs that many others would not perform. This is an example of an economic benefit of poverty as it helps sustain certain industries and services by ensuring a consistent supply of labor at lower costs.

Furthermore, the discussion around federal antipoverty programs often touches on the delicate balance required to provide assistance without discouraging work. Programs designed to assist the poor may inadvertently create a poverty trap, where assistance diminishes as income rises, leaving no net gain for the individual's efforts to work more, and thus discouraging work.