Relative Poverty | Inesh Mukherjee | TEDxYouth@JumeirahCollege

Summary

Anish Mukherjee discusses the distinction between extreme and relative poverty, using the example of a student named Mary to illustrate the latter. While extreme poverty is defined by living on less than $1.90 a day, relative poverty involves having significantly less income than the average population, hindering access to essential services like education. Mukherjee explains how inflation worsens relative poverty by reducing the purchasing power of money and advocates for solutions like job creation, education, and healthcare access to break the cycle of poverty without exacerbating inflation.

Takeaways

• 😀 Mary’s case highlights relative poverty, where a lack of income prevents access to basic needs like education, even though she isn't experiencing extreme poverty (like homelessness or starvation).
• 😀 Extreme poverty is defined as living below the poverty line of $1.90 per day, and it affects millions globally, especially children.
• 😀 Relative poverty occurs when someone’s income and standard of living are far below the average, making it difficult to access basic services and luxuries.
• 😀 Inflation reduces the purchasing power of money, making it harder for those in relative poverty to afford the same goods and services as the average population.
• 😀 If a person’s income doesn’t rise with inflation, they effectively become poorer each year, further deepening their struggle against relative poverty.
• 😀 More than 20% of the UK population experiences relative poverty, underlining the scale of the issue in developed nations.
• 😀 Relative poverty can lead to high crime rates and increased income inequality, creating long-term economic instability.
• 😀 Providing cash to people in relative poverty may not solve the problem because it can stimulate demand, causing inflation to rise and worsening the situation.
• 😀 Solutions to relative poverty should focus on creating sustainable jobs and providing access to education and healthcare, not just temporary financial aid.
• 😀 The rise of AI and automation threatens to take away 30 million jobs by 2030, making workforce development and reskilling more critical than ever.
• 😀 A more comprehensive approach is needed to address poverty, including managing inflation, providing viable job opportunities, and ensuring everyone has access to necessary services like education and healthcare.

Q & A

What is the main focus of the speaker's discussion in the script?

The speaker, Anish Mukherjee, discusses poverty, with an emphasis on relative poverty and how it differs from extreme poverty, highlighting the impacts of inflation and the importance of providing access to education, healthcare, and job opportunities to those in relative poverty.

How is extreme poverty defined in the script?

Extreme poverty is defined as living below the poverty line of $1.90 a day, as set by the UN in 2015. It affects millions of people worldwide, with significant consequences for children and their overall development.

What are the projected statistics for extreme poverty in 2022 mentioned in the script?

The World Economic Forum projects that 263 million people could be facing extreme poverty by the end of 2022, with one in five children affected by it.

How does the speaker differentiate between extreme poverty and relative poverty?

Extreme poverty refers to living below the poverty line, while relative poverty is defined as having significantly less income and a lower standard of living compared to the average population. People in relative poverty may struggle to afford basic needs like education, despite not living in extreme conditions like homelessness or starvation.

Why is Mary's case considered an example of relative poverty?

Mary's case is considered relative poverty because, although she is not homeless or starving, her family cannot afford to send her to school, which is a basic necessity. This makes her standard of living significantly lower compared to others in society, which characterizes relative poverty.

What is the economic impact of relative poverty, as explained in the script?

Relative poverty can lead to higher crime rates and increased income inequality. It also stresses the economy by limiting access to opportunities, such as education and healthcare, which affects individuals' ability to improve their living standards.

How does inflation contribute to relative poverty?

Inflation reduces the purchasing power of money. If income levels do not rise in line with inflation, people in relative poverty become increasingly unable to afford basic goods and services, worsening their situation each year.

What does the speaker suggest as a solution to relative poverty?

The speaker suggests creating job schemes that offer more viable job opportunities, particularly in response to AI and automation displacing workers. Additionally, providing better access to education and healthcare is crucial for addressing relative poverty and improving people's living standards.

Why does the speaker argue that simply providing cash to the impoverished will not solve relative poverty?

Simply providing cash would increase demand across the economy, which could further drive inflation, exacerbating the problem instead of solving it. The speaker emphasizes the need for targeted solutions that do not fuel inflation.

What is the projected impact of AI on the job market by 2030, according to the speaker?

The speaker mentions that AI could replace 30 million jobs by 2030, highlighting the need for job schemes that help displaced workers find new, meaningful employment opportunities.