6 of 6 people found the following review helpful
A rather wonderful book,
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This review is from: Poor Economics: Barefoot Hedge-fund Managers, DIY Doctors and the Surprising Truth about Life on less than $1 a Day (Paperback)
A great non-fiction book. The authors cast new light on the lives of the poor, and of us all.
Early chapters discuss individual rationality. There's enough money to spend on food but there is more to the good life for human beings than food - even if you are poor. There is TV, or wedding feasts. Education can be seen as a lottery in which the winer - the brightest child in the family - should take all. Actually everyone benefits from each extra year do education. And people don't understand health issues. Actually none of us do, but we in the west have states that take much of the strain here for us.
The second part of the book deals with systemic issues. Handling costs make it hard for the poor to access lending or borrowing (though micro finance now helps). And they are not much interested in insurance, choosing instead to hedge the risks in their life by diversifying their economic activities. Many are entrepreneurs faute de mieux. A regular wage can transform Iives. Finally when it comes to politics, changes to eg transparency can make a big difference. So too can eg quotas for eg women in politics, by transforming expectations.
My one regret about this book is that the authors have not read Thinking Fast and Slow. This could explain many of their findings further. A causal story is a good story for the fast thinking system - in this book explaining to schoolgirls thatbsugarndaddies are more likely to have HIV than young men. Sometimes - as in the statistical thinking needed to get a grip on insurance or public health issues - there is no alternative but to wake up the slow thinker who lurks in all of us.
But this is very strongly recommended.