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.
Theodore SchultzRead
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.
Interpretation
What this quote means
Wealth can create a disconnect in understanding the struggles of those less fortunate.
The quote emphasizes the difficulty that wealthy individuals, including economists, face in truly grasping the choices and challenges encountered by poorer populations. This disconnect often arises from differences in experiences and perspectives, leading to misunderstandings about the motivations and constraints that shape the lives of those living in poverty.
Themes
WealthPovertyUnderstandingEconomicsChoices
In practice
Example use cases
In a discussion about social equity and economic disparities, this quote could illustrate the challenges of understanding poverty.
More from Theodore Schultz
All quotes →Similar quotes
We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists, and in so far as it ever did exist, it only worked on each occasion since the war by injecting a bigger dose of inflation into the economy, followed by a higher level of unemployment as the next step.
James CallaghanRead
Governments don't reduce deficits by raising taxes on the people; governments reduce deficits by controlling spending and stimulating new wealth.
Ronald ReaganRead
I think there's a lot of merit in an international economy and global markets, but they're not sufficient because markets don't look after social needs.
George SorosRead
If Europe today accounts for just over 7 per cent of the world's population, produces around 25 per cent of global GDP and has to finance 50 per cent of global social spending, then it's obvious that it will have to work very hard to maintain its prosperity and way of life.
Angela MerkelRead
The gap in India has always been between the promise and the execution.
Raghuram RajanRead
The Federal Reserve, like other central banks, wields powerful tools; democratic accountability requires that the public be able to see how and for what purposes those tools are being used.
Ben BernankeRead