Chapter 1 Class A World of Rich and Poor

© 2013 Pearson Education, Inc. All rights reserved. The Global Divide Inequalities between and among Nations –The gap between nations is still greater than the gap within any single country Realities of Global Poverty –The world reached 7 billion people in 2011 About 1.5 billion are well-off, middle class or above –Global poverty is declining

© 2013 Pearson Education, Inc. All rights reserved. Table 1.1 International Comparisons in Income & Well-Being

© 2013 Pearson Education, Inc. All rights reserved. Table 1.1 International Comparisons in Income & Well-Being

© 2013 Pearson Education, Inc. All rights reserved. Figure 1.1 Inequality in Selected Countries

© 2013 Pearson Education, Inc. All rights reserved. Table 1.2 The World’s Billionaires

© 2013 Pearson Education, Inc. All rights reserved. Table 1.2 The World’s Billionaires

© 2013 Pearson Education, Inc. All rights reserved. Theories of Class and Economy The Wealth of Nations: Adam Smith The Misery of Nations: Karl Marx –A growing divide between owners & workers –A continual crisis of profit for owners –Workers driven to the level of subsistence –Solidarity/class-consciousness for workers Assessing the Views

© 2013 Pearson Education, Inc. All rights reserved. Figure 1.2 Child Poverty before and after Government Intervention

© 2013 Pearson Education, Inc. All rights reserved. Figure 1.2 Child Poverty before and after Government Intervention

© 2013 Pearson Education, Inc. All rights reserved. Modernization & Dependency Theories Modernization theory: time to clean house –Nations today need modern technology –Developing nations need modern ideas –Developing nations need modern institutions Dependency theory: get out of my house –Dependency brought exploitation

© 2013 Pearson Education, Inc. All rights reserved. Modernization & Dependency Theories –Dependency also brought domination –Dependency brought distortion When prehistory repeats itself –Culture of poverty –Fatalism –Exploitation of workers

© 2013 Pearson Education, Inc. All rights reserved. Ending Extreme Poverty: Markets and Beyond Market conundrums The ultimate failure of the market can be seen in a basic disjuncture between: –Basic beliefs and everyday life One of the most vocal champions of the U.N. Millennium Development goals: –Has been economist Jeffrey Sachs