Poverty Premium Research (Harvard Business Review)

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Multinationals that failed to take these realities into account saw their best-laid business plans go bust. P&G’s PUR sachets were envisioned as a low-priced competitor to bottled water; in reality, though, poor households are used to boiling their tap water or drinking it untreated. Grameen Danone’s real competition among rural populations wasn’t expensive store-bought yogurt—it was homemade yogurt that consumers produced for a fraction of the cost.

In places where poor consumers benefit from lower prices, they often incur other costs. For example, the informal economy fails to ensure safe working conditions and reasonable wages, product quality controls, or taxes for the state. The brunt of these externalities is borne by the poor, as workers, consumers, and beneficiaries of government funds. Such places may have a “poverty premium” that multinationals could help eliminate, but that premium does not take the form of higher prices.

The Problem with the “Poverty Premium,” Harvard Business Review, Ethan Kay and Woody Lewenstein, April 2013

Ethan Kay gave a Ted Talk about creating cookstoves for poverty survivors.

Rescuing the World from the Robotic Cookie Monster!

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“If we don’t stop him soon, Harry thought, there won’t be a single cookie left in the whole city – and it will be all my fault!”

“Horsie swooped down right in front of CookieBot. then he dropped the bait: an enormous rainbow sugar cookie.”

CookieBot! A Harry and Horsie Adventure, written by Katie Van Camp and illustrated by Lincoln Agnew

Better Options Mean Better Results

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Clearly a much better set of options could be provided to African Americans—and poor people of all colors—today. As historian Lerone Bennett Jr. eloquently reminds us, “a nation is a choice.” We could choose to be a nation that extends care, compassion, and concern to those who are locked up and locked out or headed for prison before they are old enough to vote. We could seek for them the same opportunities we seek for our own children; we could treat them like one of “us.” We could do that. Or we can choose to be a nation that shames and blames its most vulnerable, affixes badges of dishonor upon them at young ages, and then relegates them to a permanent second-class status for life. That is the path we have chosen, and it leads to a familiar place.

The New Jim Crow by Michelle Alexander

 

We could choose to be a nation that extends care, compassion, and concern to those…locked out…before they are old enough to vote.

 

The Viking War Cry

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‘One… two… three…’ Four hundred Viking voices screamed as one: ‘GO AWAY!’ and added for good measure the Viking War Cry. The Viking War Cry was designed to chill the blood of Viking enemies at the commencement of battle. It is a horrifying, electrifying shriek that begins by mimicking the furious yell of a swooping predator, which then turns into the victim’s scream of pure terror, and ends with a horribly realistic imitation of the death-gurgles as he chokes on his own blood. It is a scary noise at the best of times, but shouted altogether by four hundred barbarians at eight o’clock in the morning it was enough to make the mighty Thor himself drop his hammer and blub like a little baby.

How To Train Your Dragon (Book 1) by Cressida Cowell

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Stillbirth Equals Prison Time

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Marsha wandered through her first days at Tutwiler in a state of disbelief. She met other women like herself who had been imprisoned after having given birth to stillborn babies. Efernia McClendon, a young black teenager from Opelika, Alabama, got pregnant in high school and didn’t tell her parents. She delivered at just over five months and left the stillborn baby’s remains in a drainage ditch. When they were discovered, she was interrogated by police until she acknowledged that she couldn’t be 100 percent sure the infant hadn’t moved before death, even though the premature delivery made viability extremely unlikely. Threatened with the death penalty, she joined a growing community of women imprisoned for having unplanned pregnancies and bad judgment.

Just Mercy: A Story of Justice and Redemption by Bryan Stevenson

US Dept of State 2016 Trafficking In Persons Report

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Today, we continue the long journey toward an America and a world where liberty and equality are not reserved for some, but extended to all. Across the globe, including right here at home, millions of men, women, and children are victims of human trafficking and modern-day slavery. We remain committed to abolishing slavery in all its forms and draw strength from the courage and resolve of generations past.

President Barack Obama

HUMAN TRAFFICKING DEFINED
The TVPA defines “severe forms of trafficking in persons” as:
➤ sex trafficking in which a commercial sex act is induced by force, fraud, or coercion, or in which the person induced to perform such an act has not attained 18 years of age; or
➤ the recruitment, harboring, transportation, provision, or obtaining of a person for labor or services, through the use of force, fraud, or coercion for the purpose of subjection to involuntary servitude, peonage, debt bondage, or slavery. A victim need not be physically transported from one location to another for the crime to fall within these definitions.

2016 Trafficking In Persons Report (PDF)(Home Page)

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Poverty Premium Research (University of Michigan and UC Davis)

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“Because they have to buy small quantities, they have little inventory at home and can’t wait until a sale presents itself to purchase again, making it even harder to take advantage of sales,” says Orhun, professor for marketing. “It’s a double whammy.”

“It’s not about poor people making poor decisions; it’s about them facing liquidity constraints,” she says, “and it matters even for what we’d consider small purchases.

Frugality is Hard to Afford, news release about research completed by Professor Yesim Orhun and PhD student Mike Palazzolo; 02/24/2016

Frugality is Hard to Afford, Working Paper (Revising for invited resubmission at Journal of Marketing Research), Mar 20, 2016, Mike Palazzolo – Paper available for download

Perhaps this sounds like a subtle discovery about minor household goods. But it supports a larger point about poverty: It’s expensive to be poor. Or, to state the same from another angle: Having more money gives people the luxury of paying less for things.

Why the poor pay more for toilet paper — and just about everything else by Emily Badger, Washington Post, 3/8/2016

In a recent working paper, the University of Michigan’s A. Yesim Orhun and Mike Palazzolo, point to how two of American shoppers’ (and marketers’) favorite money-saving strategies, the limited-time offer and buying in bulk, come with savings that are more accessible to some consumers than others. Choosing to buy things when they’re on sale or packaged in huge quantities is something lots of shoppers may take for granted as a matter of preference, but for many, these purchases—and the savings that come with them—are out of reach.

The Privilege of Buying 36 Rolls of Toilet Paper at Once, The Atlantic, Joe Pinsker, MAY 12, 2016

Limited access to supermarkets and discount stores, which contributes to the idea that poor people end up paying more for things or the “poverty penalty,” is one of the biggest problems facing low-income neighborhoods.

But the study suggests that low-income families can’t always afford bulk or sale items in the stores that they do have access to.

Why poor families are paying more for everyday items like toilet paper by Ahiza Garcia, CNN Money, March 25 2016.

The Little Things

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“Would you mind if I took this off?” she asked. Boy 412 shook his head. That’s what mothers were for. To fiddle about with your hat.

Septimus Heap, Book One: Magyk by Angie Sage

 

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Happy Elves, Happy Shoemakers

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Happy International Workers Day and Labor Day!

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When they were dressed, they leaped and bounced around the room, singing, “Now we’re elves so fine to see, no longer cobblers we will be.” They jumped over chairs, raced around the shop and finally ran out the door. The click and clack of their new shoes echoed through the streets.

 

From that time on, the little elves were not seen again. But the shoemaker and his wife lived a long and happy life.

The Elves and the Shoemaker, a retelling of a story written by the Brothers Grimm, illustrated by Jim LaMarche

 

Questions Are A Luxury

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Grimble sighed. He was going to miss these two. He might miss their questions most of all. It felt so luxurious to be able to ask and answer questions. He had once thought the sweetest taste in the world was that of a freshly killed vole, but now he knew differently. The sweetest thing was a question on the tongue.

 

 

The Guardians of Ga’Hoole, Book One: The Capture, by Kathryn N Lasky