3 ms·
First off. Economists define "poverty rate" in a slightly cheeky manner: "The poverty rate is the ratio of the number of people who fall below the poverty line
by chvid 11y ago
First off. Economists define "poverty rate" in a slightly cheeky manner:
"The poverty rate is the ratio of the number of people who fall below the poverty line and the total population; the poverty line is here taken as half the median household income."
This means that if the middle class is 5% better off after one year and the lower class is only 2% better off, then the poverty rate will go up. Eventhough all households are doing better.
The same goes in reverse. If the middle class is 5% worse off after one year and the lower class is only 2% worse off, then the poverty rate will go down. Eventhough everyone is doing worse.
This does not mean that the number is meaningless; it just cannot stand on its own.
Secondly. Japan is much nicer with those bad things that hurt the lower classes in other societies:
Crime is much lower, relatively few people in prisons. And the public school system is of very high standard.
- AnimalMuppet 11y agoIf I understand this correctly, basic income could eliminate poverty (by that specific definition). It would need to pay people half the median income, but tax the median income at a rate that means that exactly offsets the basic income payment (and, probably, tax higher incomes at higher rates).