What many economists fail to understand is that poor people are no less concerned about improving their lot and that of their children than rich people are.
Interpretation
Both rich and poor people share a common desire for better lives and futures for themselves and their children.
The quote by Theodore Schultz emphasizes that the aspirations and concerns for improvement in life are universal among all socioeconomic classes. It highlights the misconception that poor individuals are less motivated to seek better opportunities for themselves and their offspring, when in fact, they possess the same drive and determination as those in wealthier circumstances.
In practice
In a discussion about social programs, one might say, 'As Theodore Schultz noted, poor people are just as motivated to improve their lives and their children's futures.'
People who are rich find it hard to understand the behavior of poor people. Economists are no exception, for they, too, find it difficult to comprehend the preferences and scarcity constraints that determine the choices that poor people make.
What Wall Street and credit card companies are doing is really not much different from what gangsters and loan sharks do who make predatory loans. While the bankers wear three-piece suits and don't break the knee caps of those who can't pay back, they still are destroying people's lives.
The Federal Budget can and should be made an instrument of prosperity and stability, not a deterrent to recovery.
That's the world we live in: when it comes to economics, people have emotions; it's not like chemistry or physics.
We all knew this. We all knew that it would take more time than any of us want to dig ourselves out of this hole created by this economic crisis.
Those who advocate devaluation are calling for a reduction in the wage levels and the real wage standards of every member of the working class.
What drags down our entire economy is when there's an ever-widening chasm between the ultra-rich and everybody else.
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