Poverty as a Determinant of Inequality

Abstract

Two aspects of man have successively dominated the thinking of social philosophers over the past two centuries, each true in itself but sadly incomplete without the other. One sees him as a biological entity, a machine, an engine, capable of effort and work for which he requires fuel in the form of food and nourishment. The other sees him as a seat of ‘utility’ or ‘satisfaction’, possessing desires and aspirations which need to be fulfilled. Classical Political Economy, developed in the early stages of the industrial revolution, emphasised the first. The idea of a ‘minimum subsistence wage’ occurs in David Ricardo’s writings, just as it does in the writings of Robert Malthus. It is however the latter aspect which has dominated social thought over the past hundred years and more. This too is understandable. With rising wealth in the industrializing economies the basic necessities of life were being met for the majority of the population. What remained of concern were the “higher pleasures”. (For a thorough account of this see A. K. Dasgupta 1985.)