Crash Course Economics: Poverty and Extreme Poverty

Introduction

• Hosts: Adriene Hill and Jacob Clifford
• Focus: Understanding and addressing poverty and extreme poverty

Millennium Development Goals

• Created by the United Nations in the 1990s
• First goal: Eradicate extreme poverty and hunger
• 2015 deadline with significant but incomplete progress

Definitions of Poverty

• Poverty: Varies by country; US poverty line is $11,770/year ($32/day)
• Extreme Poverty (UN Definition): Living on less than $1.25/day

Progress and Challenges

• 1990s: 1.9 billion people in extreme poverty
• 2015: Reduced to 836 million
• 2030 prediction: Could drop to less than 400 million
• Challenges: Climate change threatens progress

Causes for Reduction in Extreme Poverty

• Globalization and Trade: Key drivers
  • Better access to education
  • Humanitarian aid
  • Policies of international organizations

Role of Globalization

• Economic Growth: Driven by free trade and interconnected economies
• Technological Advances: Communication and transport improvements
• Mobile Phones: Transformative technology reducing poverty
  • Access to banking, education, market prices

Downsides of Globalized Trade

• Creation of "winners" and "losers"
  • Corporations and consumers benefit
  • High-wage workers in developed countries lose jobs
• Low-Wage Workers: Hazardous conditions, but often better wages

Controversies and Criticisms

• Economic Colonialism: Criticism of outsourcing as exploitation
• Calls for:
  • Protectionist policies (tariffs, limits on outsourcing)
  • Higher wages and worker protections in developing countries

Sustainability Concerns

• Global economy growth may be unsustainable
• Environment: Deforestation, pollution, climate change

Participation in the Economy

• Microcredit: Small loans to low-income individuals to start businesses
  • Promotes self-entrepreneurship and economic participation
  • Initiated by Muhammad Yunus, Nobel Peace Prize winner

Conclusion

• While progress in reducing extreme poverty is significant, challenges remain
• Globalization has lifted many out of poverty but needs sustainable practices
• Supporting economic participation is crucial for lasting impact

• Support for Crash Course: Available through Patreon
• End Note: DFTBA (Don't Forget To Be Awesome)