Economics of Social Issues 20Th Edition Sharp Solutions Manual Full Chapter PDF

Chapter 07 - Poverty and Discrimination: Why Are So Many Still So Poor?
Economics of Social Issues 20th

Edition by Sharp Register Grimes ISBN
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CHAPTER 7
POVERTY AND DISCRIMINATION: WHY ARE SO MANY
STILL SO POOR?
WHY ARE SO MANY STILL POOR?

In our opening discussion of what constitutes poverty, we try to get across two ideas. First, we stress
that the absolute income levels used to separate those said to live in poverty from those who do not are
arbitrarily determined. The “minimum needs” of a person or a family are very difficult to define in any
sort of absolute sense. Second, we stress the income distribution pattern and the idea of the relative
poverty that results from an unequal distribution of income. The Lorenz curve is excellent for
demonstrating this concept.
By looking at the groups with a high incidence of poverty, we lay the groundwork for establishing the
economic causes of poverty. We emphasize that the common causes are low productivity, low resource
prices, and small quantities of resources owned by poor families and poor individuals.
We also introduce the effects of discrimination, which blocks many of the poor from activities that
increase their productivity. We present several of the various forms of market discrimination and their
causes: monopoly power and what Becker calls “tastes for discrimination.” The sources of
discrimination suggest the lines of attack that will mitigate it. The appropriate approaches seem to be
to reduce monopoly power and to reduce tastes for discrimination. Both of these are formidable tasks.
Identifying the economic causes of poverty helps to identify the measures necessary to alleviate it. We
look first at measures to increase the productivity of the poor. Next, we consider measures to maintain
or to supplement incomes of the poor. A comprehensive description of the welfare reform measures
enacted in 1996 is provided along with a comparison to the “old welfare system.” In addition, we present
an examination of the Earned Income Tax Credit (EITC) as a policy tool to raise the disposable income
of poor families. The EITC’s structure is explained and compared to the longstanding negative income
tax proposal. In our experience, many students have significant misconceptions about anti-poverty
programs and their economic effects. This section of the material lends itself well to classroom
discussion and debate. The controversial aspects of the ongoing welfare reform illustrate important
economic concepts and ideas.
TEACHING OUTLINE
I. Introduction to Poverty
A. Data on poverty
B. What is poverty?
1. Minimum needs calculation
C. Who is poor?
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II. Poverty in Terms of Income Distribution
A. Lorenz curve
III. Economic Causes of Poverty
A. Determinants of resource prices and employment
1. Wage rate determination (MRP)
2. Price of capital
B. Determination of individual or family income
1. Income differences due to differences in labor resources and their use
a. Brains and brawn
b. Quantity and quality of capital to work with
c. Taste for leisure
d. Marginal revenue of firm
2. Causes of differences in capital resources ownership
a. Inheritance
b. Luck
c. Propensities to accumulate
C. Discrimination
1. Monopoly power
2. Desire to discriminate
IV. Evidence of Discrimination in Our Economy
A. Types of discrimination
1. Wage
2. Employment
3. Occupational
4. Price
7-4
V. Government Attempts to Alleviate Poverty
A. Old federal welfare system
1. Income support
2. Health care
3. Food and nutrition
4. Housing
5. Other social services
6. Training and employment
B. Problems with the old welfare system
1. Work incentives
2. Family structure incentives
3. Welfare dependency
C. Welfare reform and the new system
1. Income support
2. Medicaid
3. Food stamps
4. Other social services
VI. Using Tax Policy to Fight Poverty
A. Earned income tax credit
B. Negative income tax
VII. Anti-discrimination Policies
A. Decrease taste for discrimination
1. Education
2. Legislation
3. Subsidies
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B. Decrease market imperfections
C. Decrease discrimination in human capital development
D. Decrease occupational segregation
CORE ECONOMIC PRINCIPLES

Lorenz Curve - the Lorenz curve is the major new technique for analysis introduced in this chapter.
Income distribution is analyzed using the Lorenz curve and is related to poverty and discrimination.
Labor Markets - This chapter supports the discussion of labor markets in other chapters by looking in
detail at some of the determinants of the demand for labor as they relate to poverty and
discrimination.
Tax Policies - Tax policies used to address poverty and discrimination are presented in this chapter (e.g.,
the EITC and negative income tax). The application of tax policy to this specific social issue
integrates well with other applications of tax policy throughout the text.
RESOURCES
Data Links
For poverty data, go to http://www.census.gov/hhes/www/poverty.html.
For income data, go to http://www.census.gov/hhes/www/income/income.html
For wage, earnings, and benefits data, go to http://www.bls.gov/bls/wages.htm. For average hours and
earnings of production and nonsupervisory workers(1) on private nonfarm payrolls by major industry
sector, 1964 to 2008, go to http://www.bls.gov/opub/ee/empearn200901.pdf.
Curriculum Ideas
The National Committee on Pay Equity at http://www.pay-equity.org/. is representative of the left’s

approach to pay disparities issues.
This article by Deborah Walker of George Mason University at

http://www.cato.org/pubs/pas/pa038.html is representative of the right’s approach to pay disparities
issues.
For a classroom experiment on income distribution, see Expernomics Vol. 1, #1. For a classroom
experiment on income redistribution and poverty, see Vol. 5, #2.
http://www.marietta.edu/~delemeeg/expernom.html.
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DATA SOURCES
The following data sources may be used to update and refine the statistics found in this chapter:
• The U.S. Department of Commerce, Bureau of the Census, annually publishes Poverty in the United
States as part of its “Current Population Reports – Consumer Income” (P-60) series. This report
can be found in most Federal Depository libraries or on the web at http://www.census.gov/. This is
the primary source for the latest official poverty rates and threshold levels of income.
• The web site for the Center on Budget and Policy Priorities provides full-text articles on the
economic benefits and costs of the Earned Income Tax Credit. Additional information is available
on other welfare reform proposals and other federal budget issues. The reports provided are
generally presented in a nonpartisan manner. The CBPP site can be found at http://www.cbpp.org.
• A wide variety of data concerning income and poverty in the United States can be found in the
annual Statistical Abstract of the United States. It is available in the reference department of most
libraries and can now be accessed online through the Census Department at
http://www.census.gov/compendia/statab/
DISCUSSION QUESTIONS
1. How would you define poverty? Why?
2. Discuss poverty in the U.S. as an absolute problem and as a relative problem.
3. Discuss the economic causes of poverty.
4. Explain the essential features of a negative income tax scheme. What are its advantages and
disadvantages?
5. Discuss whether or not reliance on the market mechanism leads to an inequitable distribution of
income and wealth.
6. Compare the Earned Income Tax Credit (EITC), as currently implemented by the Internal
Revenue Service, to the proposed negative income tax structure. How are they alike? How are
they different?
7. Discuss the major differences between the “old” and “new” welfare systems.
8. Which groups in our society have the highest incidence of poverty and which have the lowest?
9. Can poverty be eliminated without using any type of income redistribution plan? Why or why
not?
10. Discuss the primary determinants of resource ownership and price.
11. Explain how to construct a Lorenz curve. How does a Lorenz curve show greater inequality?
12. Evaluate the following statement: “A person living in poverty today will likely be living in
poverty in the future. Discuss both past beliefs and any new findings related to the statement.
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13. Discuss the trends in poverty found in the United States since the 1960s. How and why did these
trends change in the 1990s?
14. Discuss the major federal programs aimed at providing financial help and education/training to
low-income families.
15. Explain how important the marginal revenue product of labor is in determining the incidence of
poverty.
16. Discuss the weaknesses and strengths of the U.S. approach to the problem of poverty.
17. Explain why the incidence of poverty stayed approximately the same in the 1990s even though
the economy expanded.
18. Discuss the proposition that programs designed to alleviate poverty have not been successful.
19. Describe and discuss the major changes in the welfare system that resulted from the Personal
Responsibility and Work Opportunity Act of 1996.
20. What are some of the potential problems with requiring welfare recipients to work?
21. How does the “income effect” influence workers who receive income support payments?
22. Is it possible to provide income support to the poor without reducing their incentive to work?
Explain using economic reasoning.
23. Discuss the primary sources of market discrimination.
24. What are the differences between employment discrimination and occupational discrimination?
25. Discuss what is meant by wage discrimination and employment discrimination.
26. What can be done to reduce people’s taste for discrimination?
27. Evaluate the following statement: “Differences in wages and prices always reflect discriminatory
practices.”
28. Show and explain the impact of labor market discrimination (wages, employment, and
occupational) on an economy’s production possibilities curve.
29. Provide an overview of public policy in the U.S. designed to combat discrimination. Has it been
successful? Why or why not?
30. What is the EEOC and what does it do?
7-8
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A beautiful thread, than a thread of sin.
THE FORTUNATE ISLES

By Joaquin Miller
You sail and you seek for the Fortunate Isles,

The old Greek Isles of the yellow bird’s song?
Then steer straight on through the watery miles,
Straight on, straight on and you can’t go wrong.
Nay not to the left, nay not to the right,
But on, straight on, and the Isles are in sight,
The Fortunate Isles where the yellow birds sing
And life lies girt with a golden ring.
These Fortunate Isles they are not so far,

They lie within reach of the lowliest door;
You can see them gleam by the twilight star;
You can hear them sing by the moon’s white shore—
Nay, never look back! Those leveled grave stones
They were landing steps; they were steps unto thrones
Of glory for souls that have sailed before,
And have set white feet on the fortunate shore.
And what are the names of the Fortunate Isles?

Why, Duty and Love and a large Content.
Lo! these are the Isles of the watery miles,
That God let down from the firmament.
Lo! Duty, and Love, and a true man’s Trust;
Your forehead to God though your feet in the dust;
Lo! Duty, and Love, and a sweet Babe’s Smiles,
And these, O friend, are the Fortunate Isles.
—Copyright by Harr Wagner Co., San Francisco, and used by kind

permission of author and publisher.
YOSEMITE
By Joaquin Miller
Sound! sound! sound!

O colossal walls and crown’d
In one eternal thunder!
Sound! sound! sound!
O ye oceans overhead,
While we walk, subdued in wonder,
In the ferns and grasses, under
And beside the swift Merced!
Fret! fret! fret!

Streaming, sounding banners, set
On the giant granite castles
In the clouds and in the snow!
But the foe he comes not yet,—
We are loyal, valiant vassals,
And we touch the trailing tassels
Of the banners far below.
Surge! surge! surge!

From the white Sierra’s verge,
To the very valley blossom.
Surge! surge! surge!
Yet the song-bird builds a home,
And the mossy branches cross them,
And the tasseled tree-tops toss them,
In the clouds of falling foam.
Sweep! sweep! sweep!

O ye heaven-born and deep,
In one dread, unbroken chorus!
We may wonder or may weep,—
We may wait on God before us;
We may shout or lift a hand,—
We may bow down and deplore us,
But may never understand.
Beat! beat! beat!
We advance, but would retreat
From this restless, broken breast
Of the earth in a convulsion.
We would rest, but dare not rest,
For the angel of expulsion
From this Paradise below
Waves us onward and ... we go.

THE DEAD MILLIONAIRE

By Joaquin Miller
The gold that with the sunlight lies

In bursting heaps at dawn,
The silver spilling from the skies
At night to walk upon,
The diamonds gleaming in the dew
He never saw, he never knew.
He got some gold, dug from the mud,

Some silver, crushed from stones.
The gold was red with dead man’s blood,
The silver black with groans;
And when he died he moaned aloud,
“There’ll be no pocket in my shroud.”

PETER COOPER
(Died 1883)
By Joaquin Miller
Give honor and love forevermore
To this great man gone to rest;
Peace on the dim Plutonian shore,
Rest in the land of the blest.
I reckon him greater than any man

That ever drew sword in war;
I reckon him nobler than king or khan,
Braver and better by far.
And wisest he in this whole wide land

Of hoarding till bent and gray;
For all you can hold in your cold dead hand
Is what you have given away.
So whether to wander the stars or to rest

Forever hushed and dumb,
He gave with a zest and he gave his best—
Give him the best to come.

THE VOICE OF THE DOVE

By Joaquin Miller
Come, listen, O Love, to the voice of the dove,

Come, hearken and hear him say:
“There are many To-morrows, my Love, my Love,
There is only one To-day.”
And all day long you can hear him say

This day in purple is rolled
And the baby stars of the milky-way
They are cradled in cradles of gold.
Now what is thy secret serene, gray dove,

Of singing so sweetly alway?
“There are many To-morrows, my Love, my Love,
There is only one To-day.”

WHERE THE WEST BEGINS

By Arthur Chapman
Out where the handclasp’s a little stronger,

Out where a smile dwells a little longer,
That’s where the West begins.
Out where the sun’s a little brighter,
Where the snow that falls is a trifle whiter,
Where the bonds of home are a wee bit tighter,
Out where the skies are a trifle bluer,

Out where friendship’s a little truer,
Out where a fresher breeze is blowing,
Where there is laughter in each streamlet flowing,
Where there’s more of reaping and less of sowing,
Out where the world is in the making,

Where fewer hearts with despair are aching,
Where there is more of singing and less of sighing,
Where there is more of giving and less of buying,
And a man makes friends without half trying—
AS I CAME DOWN FROM LEBANON

By Clinton Scollard
As I came down from Lebanon,

Came winding, wandering slowly down
Through mountain passes bleak and brown,
The cloudless day was well nigh done.
The city like an opal set
In emerald, showed each minaret
Afire with radiant beams of sun,
And glistened orange, fig, and lime,
Where song-birds made melodious chime,
As I came down from Lebanon.

Like lava in the dying glow,
Through olive orchards far below
I saw the murmuring river run;
And ’neath the wall upon the sand
Swart sheiks from distant Samarcand,
With precious spices they had won,
Lay long and languidly in wait
Till they might pass the guarded gate,

I saw strange men from lands afar,
In mosque and square and gay bazar,
The magi that the Moslem shun,
And grave effendi from Stamboul,
Who sherbet sipped in corners cool;
And, from the balconies o’errun
With roses, gleamed the eyes of those
Who dwell in still seraglios,

The flaming flower of daytime died,
And Night, arrayed as is a bride
Of some great king, in garment spun
Of purple and the finest gold,
Outbloomed in glories manifold,
Until the moon, above the dun
And darkening desert, void of shade,
Shone like a keen Damascus blade,
APPLE BLOSSOMS
By William Wesley Martin
Have you seen an apple orchard in the spring? in the spring?

An English apple orchard in the spring?
When the spreading trees are hoary
With their wealth of promised glory,
And the mavis pipes his story
In the spring?
Have you plucked the apple blossoms in the spring? in the spring?
And caught their subtle odors in the spring?
Pink buds bursting at the light,
Crumpled petals baby-white,
Just to touch them a delight!
In the spring!
Have you walked beneath the blossoms in the spring? in the spring?
Beneath the apple blossoms in the spring?
When the pink cascades were falling,
And the silver brooklets brawling,
And the cuckoo-bird is calling
In the spring?
Have you seen a merry bridal in the spring? in the spring?

In an English apple country in the spring?
When the brides and maidens wear
Apple blossoms in their hair:
Apple blossoms everywhere,
In the spring!
If you have not, then you know not, in the spring, in the spring,
Half the color, beauty, wonder of the spring.
No sight can I remember,
Half so precious, half so tender,
As the apple blossoms render
In the spring!
A MATCH
By A. C. Swinburne
If love were what the rose is,

And I were like the leaf,
Our lives would grow together
In sad or singing weather,
Blown fields or flowerful closes,
Green pastures or gray grief;
If love were what the rose is,
And I were like the leaf.
If you were queen of Pleasure,

And I were king of Pain,
We’d hunt down Love together,
Pluck out his flying-feather,
And teach his feet a measure,
And find his mouth a rein;
If you were queen of Pleasure;
And I were king of Pain.
THE BROOK AND THE WAVE

By Henry Wadsworth Longfellow
The brooklet came from the mountain,

As sang the bard of old,
Running with feet of silver
Over the sands of gold!
Far away in the briny ocean

There rolled a turbulent wave
Now singing along the sea-beach,
Now howling along the cave.
And the brooklet has found the billow

Though they flowed so far apart,
And has filled with its freshness and sweetness
That turbulent bitter heart!
INDIRECTION
By Richard Realf
Fair are the flowers and the children, but their subtle suggestion is
fairer;
Rare is the roseburst of dawn, but the secret that clasps it is rarer;
Sweet the exultance of song, but the strain that precedes it is
sweeter;
And never was poem yet writ, but the meaning out-mastered the
meter.
Never a daisy that grows, but a mystery guideth the growing;

Never a river that flows, but a majesty scepters the flowing;
Never a Shakespeare that soared, but a stronger than he did enfold
him,
Nor ever a prophet foretells, but a mightier seer hath foretold him.
Back of the canvas that throbs the painter is hinted and hidden;
Into the statue that breathes the soul of the sculptor is bidden;
Under the joy that is felt lie the infinite issues of feeling;
Crowning the glory revealed is the glory that crowns the revealing.
Great are the symbols of being, but that which is symboled is
greater;
Vast the create and beheld, but vaster the inward creator;
Back of the sound broods the silence, back of the gift stands the
giving;
Back of the hand that receives thrill the sensitive nerves of receiving.
Space is as nothing to spirit, the deed is outdone by the doing;

The heart of the wooer is warm, but warmer the heart of the wooing;
And up from the pits where these shiver, and up from the heights
where those shine,
Twin voices and shadows swim starward, and the essence of life is
divine.
—Copyright by Funk & Wagnalls Co., New York, and used by kind
permission.
LIFE AND LOVE

By Richard Realf
There is something to live for and something to love

Wherever we linger, wherever we rove,
There are thousands of sad ones to cheer and sustain
Till hopes that were hidden beam o’er them again.
There is something to live for and something to love,

For the spirit of Man is like garden or grove,
It will yield a sweet fragrance, but still you must toil,
And cherish the blossoms, and culture the soil.
There is something to live for and something to love,

’Tis a truth which the misanthrope ne’er can disprove,
For tho’ thorns and thistles may choke up the flower,
Some beauty will grace the most desolate bower.
Then think on, brother, wherever thou art,

Let the life be for men and the love for the heart,
For know that the pathway which leads us above
Is something to live for and something to love.
permission.
SONG OF SPRING
By Richard Realf
My heart goes forth to meet the Spring

With the step of a bounding roe,
For it seems like the touch of a seraph’s wing
When the pleasant south winds blow.
O, I love the loveliness that lies

In the smiling heart of May,
The beauty throbbing in violet eyes,
The breath of the fragrant hay.
There’s a great calm joy in the song of birds,

And in the voice of the streams,
In the lowly peace of flocks and herds,
And our own soul’s quiet dreams.
So my heart goes forth to meet the Spring

As a lover to his bride;
And over us both there broods the wing
Of the angel at her side.
permission.
SONG OF THE SEAMSTRESS

By Richard Realf
It is twelve o’clock by the city’s chime,

And my task is not yet done;
Through two more weary hours of time
Must my heavy eyes ache on.
I may not suffer my tears to come,
And I dare not stop to feel;
For each idle moment steals a crumb
From my sad to-morrow’s meal.
It is very cold in this cheerless room,

And my limbs are strangely chill;
My pulses beat with a sense of doom,
And my very heart seems still;
But I shall not care for this so much,
If my fingers hold their power,
And the hand of sleep forbears to touch
My eyes for another hour.
I wish I could earn a little more,

And live in another street,
Where I need not tremble to pass the door,
And shudder at all I meet.
’Tis a fearful thing that a friendless girl
Forever alone should dwell
In the midst of scenes enough to hurl
A universe to hell.
God knows that I do not wish to sink

In the pit that yawns around;
But I cannot stand on its very brink,
As I could on purer ground;
I do not think that my strength is gone,
Nor fear for my shortening breath;
But the terrible winter is coming on,
And I must not starve to death.
I wish I had died with sister Rose,

Ere hunger and I were mates;
Ere I felt the grip of the thought that grows
The hotter the more it waits.
I am sure that He whom they curse to me,
The Father of all our race,
Did not mean the world He made to be
Such a dark and dreary place.
I would not mind if they’d only give

A little less meager pay,
And spare me a moment’s time to grieve,
With a little while to pray.
But until these far-off blessings come,
I may neither weep nor kneel;
For, alas! ’twould cost me a precious crumb
Of my sad to-morrow’s meal.
permission.
SONG OF THE INDIAN MOTHER

By James Gowdy Clark
Gently dream, my darling child,

Sleeping in the lonely wild;
Would thy dreams might never know
Clouds that darken mine with woe;
Oh! to smile as thou art smiling,
All my hopeless hours beguiling
With the hope that thou mightst see
Blessings that are hid from me.
CHORUS
Lullaby, my gentle boy,
Sleeping in the wilderness,
Dreaming in thy childish joy
Of a mother’s fond caress,—
Lullaby, lullaby.
Sleep, while gleams the council fire,
Kindled by thy hunted sire:
Guarded by thy God above,
Sleep and dream of peace and love:
Dream not of the band that perished
From the sacred soil they cherished,
Nor the ruthless race that roams
O’er our ancient shrines and homes.
Sleep, while autumn glories fly,

’Neath the melancholy sky,
From the trees before the storm,
Chased by winter’s tyrant form:
Oh! ’tis thus our warriors, wasted,
From their altars torn and blasted,
Followed by the storm of death,
Fly before Oppression’s breath.
Sleep, while night hides home and grave,

Rest, while mourn the suff’ring brave,
Mourning as thou, too, wilt mourn,
Through the future, wild and worn;
Bruised in heart, in spirit shaken,
Scourged by man, by God forsaken,
Wandering on in war and strife,
Living still, yet cursing life.
Could thy tender fancy feel

All that manhood will reveal,
Couldst thou dream thy breast would share
All the ills thy fathers bear,
Thou wouldst weep as I am weeping,
Tearful watches wildly keeping,
By the silver-beaming light
Of the long and lonely night.
(Repeat Chorus)
OLD TIMES
By Gerald Griffin
Old times! old times! the gay old times!

When I was young and free,
And heard the merry Easter chimes
Under the sally tree.
My Sunday palm beside me placed,
My cross upon my hand;
A heart at rest within my breast,
And sunshine on the land!
Old times! old times!
It is not that my fortunes flee,

Nor that my cheek is pale;
I mourn whene’er I think of thee,
My darling native vale!
A wiser head I have, I know,
Than when I loitered there;
But in my wisdom there is woe,
And in my knowledge care.
I’ve lived to know my share of joy,

To feel my share of pain;
To learn that friendship’s self can cloy,
To love and love in vain;
To feel a pang and wear a smile,
To tire of other climes;
To love my own unhappy Isle,
And sing the gay old times!
And sure the land is nothing changed;

The birds are singing still,
The flowers are springing where we ranged,
There’s sunshine on the hill.
The sally waving o’er my head
Still sweetly shades my frame;
But oh! those happy days are fled,
And I am not the same.
Oh, come again, ye merry times!

Sweet, sunny, fresh and calm;
And let me hear those Easter chimes,
And wear my Sunday palm.
If I could cry away mine eyes,
My tears would flow in vain;
If I could waste my heart in sighs,
They’ll never come again!
TWILIGHT FANCIES
By Eliza A. Pittsinger
Softly flit the fairy fancies

Through the sunlight of my brain,
Weaving webs of weird romances
In a laughing, joyous strain—
Gently creeping,
Gaily leaping,
Twilight revels strangely keeping
In my brain.
Ere the evening lamps are lighted,

While my soul is wrapt in thought,
Wait they not to be invited,
Quite unwelcome and unsought—
Never sitting,
Ever flitting,
All the earnestness outwitting
Of my thought.
Thus to have my being haunted
By these fairies, all astray,
By these elfin-sprites enchanted,
Is a spell upon my way,
That shall borrow
For the morrow,
All the pleasure and the sorrow
Of to-day.
In my hours of quiet musing,

By these phantoms thus caressed,
I have lost the right of choosing
As I ought, my favored guest—
Uninvited,
Often slighted,
Come they when the lamps are lighted
For a guest.
Thus they come, the fairy fancies,

Laughing, flitting through my brain,
Weaving webs of weird romances,
In a wayward, joyous strain—
Gaily creeping,
Madly leaping,
Even now their revels keeping
In my brain.
THE SONG OF THE FLUME[16]

By Anna M. Fitch
Awake, awake! for my track is red,

With the glow of the coming day;
And with tinkling tread, from my dusky bed,
I haste o’er hill away,
Up from the valley, up from the plain,
Up from the river’s side;
For I come with a gush, and a torrent’s rush,
And there’s wealth in my swelling tide.
I am fed by the melting rills that start

Where the sparkling snow-peaks gleam,
My voice is free, and with fiercest glee
I leap in the sun’s broad beam;
Tho’ torn from the channels deep and old,
I have worn through the craggy hill,
Yet I flow in pride, as my waters glide,
And there’s mirth in my music still.
I sought the shore of the sounding sea,

From the far Sierra’s height,
With a starry breast, and a snow-capped crest
I foamed in a path of light;
But they bore me thence in a winding way,
They’ve fettered me like a slave,
And as scarfs of old were exchanged for gold,
So they barter my soil-stained wave.
Thro’ the deep tunnel, down the dark shaft,

I search for the shining ore;
Hoist it away to the light of day,
Which it never has seen before.
Spade and shovel, mattock and pick,
Ply them with eager haste;
For my golden shower is sold by the hour,
And the drops are too dear to waste.
Lift me aloft to the mountain’s brow,

Fathom the deep “blue vein,”
And I’ll sift the soil for the shining spoil,
As I sink to the valley again.
The swell of my swarthy breast shall bear
Pebble and rock away,
Though they brave my strength, they shall yield at length,
But the glittering gold shall stay.
Mine is no stern and warrior march,
No stormy trump and drum;
No banners gleam in my darkened stream,
As with conquering step I come;
But I touch the tributary earth
Till it owns a monarch’s sway,
And with eager hand, from a conquered land,
I bear its wealth away.
Awake, awake! there are loving hearts

In the lands you’ve left afar;
There are tearful eyes in the homes you prize
As they gaze on the western star;
Then up from the valley, up from the hill,
Up from the river’s side;
For I come with a gush, and a torrent’s rush,
And there’s wealth in my swelling tide.
THE WEST
By Annie Elizabeth Cheney
Wings that are glancing, wings of my soul,

That speeding like arrows fly to their goal;
Wings that have cut the keen ethers above,
O carry me on to the West of my love!
The West it is magic, perspective and fire,

Its peaks are like daggers thrust up by desire;
It is Tyre, it is Sidon and Ophir in one,
This land by the waters, this land of the sun.
—From “Dreams of Hellas.”
THE MOON-CRADLE
By Kate Wisner M’Cluskey
The little, the yellow moon-cradle
Is swaying, is swinging slow;
And the tiny white star-tapers burning
Have flickered their lights down low;
The night has the cloud-curtains ready,
She is holding them draped on her breast,
For the dear little, queer little babe in the moon
Will have sunk to rest in the west.
Hush, baby, hush!
Mother’s heart aches for the joy that she takes
In holding you close to her breast!
Perhaps in the yellow moon-cradle

A little cold baby may be;
And the tiny white star-tapers burning
May be sad for some mother to see;—
O night-angel! drop the cloud-curtain
While the gleaming bed’s caught in that tree,
For not even to the rest in the beautiful west
Will I let my babe go from me!
Sleep, sleep, my sweet!
Are you warm, little feet?
Close to my heart you will be!
GREEN THINGS GROWING

By Dinah Maria Mulock
Oh, the green things growing, the green things growing,

The faint sweet smell of the green things growing!
I should like to live, whether I smile or grieve,
Just to watch the happy life of my green things growing.
Oh, the fluttering and the pattering of those green things growing.
How they talk each to each, when none of us are knowing
In the wonderful white of the weird moonlight
Or the dim, dreary dawn when the cocks are crowing.

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Chapter 07 - Poverty and Discrimination: Why Are So Many Still So Poor?

Economics of Social Issues 20th

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WHY ARE SO MANY STILL POOR?

1. Minimum needs calculation

III. Economic Causes of Poverty

A. Determinants of resource prices and employment

1. Wage rate determination (MRP)

B. Determination of individual or family income

1. Income differences due to differences in labor resources and their use

a. Brains and brawn

b. Quantity and quality of capital to work with

c. Taste for leisure

d. Marginal revenue of firm

2. Causes of differences in capital resources ownership

IV. Evidence of Discrimination in Our Economy

A. Old federal welfare system

3. Food and nutrition

5. Other social services

6. Training and employment

B. Problems with the old welfare system

2. Family structure incentives

C. Welfare reform and the new system

4. Other social services

VI. Using Tax Policy to Fight Poverty

A. Earned income tax credit

B. Negative income tax

VII. Anti-discrimination Policies

A. Decrease taste for discrimination

C. Decrease discrimination in human capital development

D. Decrease occupational segregation

CORE ECONOMIC PRINCIPLES

For poverty data, go to http://www.census.gov/hhes/www/poverty.html.

For income data, go to http://www.census.gov/hhes/www/income/income.html

The National Committee on Pay Equity at http://www.pay-equity.org/. is representative of the left’s

This article by Deborah Walker of George Mason University at

2. Discuss poverty in the U.S. as an absolute problem and as a relative problem.

3. Discuss the economic causes of poverty.

10. Discuss the primary determinants of resource ownership and price.

23. Discuss the primary sources of market discrimination.

25. Discuss what is meant by wage discrimination and employment discrimination.

26. What can be done to reduce people’s taste for discrimination?

30. What is the EEOC and what does it do?

THE FORTUNATE ISLES

You sail and you seek for the Fortunate Isles,

These Fortunate Isles they are not so far,

And what are the names of the Fortunate Isles?

—Copyright by Harr Wagner Co., San Francisco, and used by kind

Sound! sound! sound!

Fret! fret! fret!

Surge! surge! surge!

Sweep! sweep! sweep!

—Copyright by Harr Wagner Co., San Francisco, and used by kind

THE DEAD MILLIONAIRE

The gold that with the sunlight lies

He got some gold, dug from the mud,

—Copyright by Harr Wagner Co., San Francisco, and used by kind

I reckon him greater than any man

And wisest he in this whole wide land

So whether to wander the stars or to rest

—Copyright by Harr Wagner Co., San Francisco, and used by kind