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Fall 2006

ISSN 0890-913X

Volume 22, Number 1

Categories: Politics | Fall 2006

The Politics of Poverty and the Poverty of Politics

J.R. Clark, University of Tennessee at Chattanooga

Dwight R. Lee, University of Georgia and Ball State University

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JournalofPrivateEnterprise,VolumeXXII,Number1,Fall2006ThePoliticsofPovertyandthePovertyofPoliticsJ.R.ClarkUniversityofTennesseeatChattanoogaDwightR.LeeTheUniversityofGeorgiaHowmuchshouldgovernmentdotohelpthepoordirectlythrough,taxesandtransfersdesignedtoreduceincomeinequality,insteadofindirectlybyconfiningitselftothelimited,butimportant,tasksnecessaryfortheprivateproductionofwealththroughspecializationandmarketexchange?In"CapitalismandFreedom,"Friedmanargues—verylittle.Hecomesclosetoarguingthatthestateshouldnotconcernitselfatallwithreducingincomeinequality,thoughhedoesleavethedoorslightlyopenonthegroundsthatstateredistributioncanserveasinsurance(162-63).Andhemakesapositivecaseforsomestateactiontoalleviatepovertyusingtheargumentthatsuchalleviationisapublicgood,orinhiswords,createsa"neighborhoodeffect"thatprivatecharitydoesn'tfullyconsider(191).Twoconsiderationsarerelevanttoanycasefordirectgovernmenttransfersfromthenon-poortothepoor:1)theactualdegreeofinequality,and2)theeffectivenessofgovernmenttransfersatreducinginequalityinwaysthatreducepoverty.Asexpected,Friedmandoubtsthatinequalityisaseriousproblem,orthatdirectactionbygovernmenthasdonemuchtoreduceinequalityandpoverty.Withrespectto1),Friedmanstatesthata"[s]trildngfact,contrarytopublicconception,isthatcapitalismleadstolessinequalitythanalternativesystemsoforganizationandthatthedevelopmentofcapitnlisrnhasgreatlylessenedtheextentofinequality"(169),andhisdiscussionofprogressiveincometaxes,publichousing,wageandpricesupports,andSocialSecuritypointsouthowineffectivetheyhavebeenJ.R.ClarkandDwightR.Lee84

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Title	The Politics of Poverty and the Poverty of Politics
Authors/Creators:	J.R. Clark, University of Tennessee at Chattanooga Dwight R. Lee, University of Georgia and Ball State University
Year:	2006
Volume:	22
Number:	1
Pages:	84 - 106
Publisher:	The Association of Private Enterprise Education
ISSN:	0890-913X
Document Type:	Articles
Keywords:	Income inequality, Government policy, Poverty, Role of government

Citation:
Clark, J.R.; Lee, Dwight R. / 2006. "The Politics of Poverty and the Poverty of Politics." The Journal of Private Enterprise, 22(1): 84-106.