New from Oxford economist #OlivierSterck: "Measuring poverty on a spectrum instead of an arbitrary line conveys a more accurate picture of inequality."
https://theconversation.com/measuring-poverty-on-a-spectrum-instead-of-an-arbitrary-line-conveys-a-more-accurate-picture-of-inequality-271912

PS: I find this take on poverty very illuminating. Instead of measuring poverty by incomes (dollars per year), we should measure it by the time it takes to earn $1 (years per dollar). The classical measure allows a small number of very rich people to pull up the average income, and makes widespread poverty seem to be a minor problem. Sterck's new measure allows a large number of struggling people to pull up the average time needed to earn money, and makes a necessary correction to our understanding. The classical measure gives more voice or weight to the rich, when they're very rich, while Sterck's gives more to the poor, when they're very numerous. This helps us see two things otherwise invisible: widespread poverty hidden by average wealth, and the role of income inequality in hiding that poverty.

While the average income is higher or better in the US than in Europe, the average time needed to earn $1 is significantly longer or worse in the US. This kind of poverty exists alongside that high average income. We need to bring in severe income inequality to explain this, and of course income inequality is significantly higher in the US than Europe.

#Economics #Income #IncomeInequality #Poverty