Why Economics Fails to Explain Poverty: A Call for Critical Thinking and Equity

Economics: The Science of Explaining Why You’re Poor

Ah, economics – the study of how to make sense of the money you don’t have. It’s a field that’s been around for centuries, and yet somehow we still haven’t figured out how to solve poverty.

Economists love to talk about “supply” and “demand,” as if they’re magical forces that control everything in our lives. Apparently, if there’s too much supply and not enough demand, prices will go down. But if there’s too much demand and not enough supply, prices will go up. Who knew?

Of course, this all sounds very logical until you realize that it doesn’t actually explain anything about why some people are rich and others are poor. After all, there are plenty of places where there’s a huge demand for basic necessities like food and housing, but somehow those things remain unaffordable for large segments of the population.

Perhaps this is because economists also seem to think that people are perfectly rational beings who always act in their own best interests. According to this theory, if someone is struggling financially it must be because they’re just not working hard enough or making good decisions.

But anyone who has ever lived paycheck-to-paycheck knows that life isn’t always so simple. Sometimes unexpected expenses arise (like medical bills or car repairs) that can completely derail even the most responsible person’s finances.

And let’s not forget about systemic factors like discrimination and income inequality – both of which play a huge role in determining who gets ahead in our society.

But despite all these complexities, economists continue to insist on reducing everything down to neat little equations that ignore the messy reality of human experience. They’ll tell you that raising the minimum wage will hurt small businesses (even though studies show otherwise), or that cutting taxes for the wealthy will somehow benefit everyone else (again, evidence suggests otherwise).

It seems clear then that perhaps we need to take a step back from the traditional models of economics and start thinking more critically about how we can create a truly equitable society. This might mean reimagining our entire economic system, or it might mean implementing policies that prioritize the needs of marginalized communities.

Whatever the solution may be, one thing is certain: we can’t continue to rely on an outdated field that seems more interested in protecting the status quo than actually helping people.