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Poverty Interrupted
Report

Poverty Interrupted

Combating Intergenerational Poverty with Behavioral Economics

Ideas 42
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Editorial Rating

7

Qualities

  • Innovative

Recommendation

Poverty affects not only an individual; it can also have lasting effects on families and communities for generations. “Poverty Interrupted” is an initiative by Ideas42. Here, the think tank explains its innovative approach to eliminate poverty in the US by encouraging small investments today. This report, which could have gone into more detail, highlights how Poverty Interrupted plans to use behavioral economics to remedy the long-term implications of poverty. getAbstract recommends the analysis to policy makers, economists, and to people working in governmental and nongovernmental organizations.

Summary

Poverty costs the US an estimated $500 billion per year in public expenditures and lost earnings. Most severely affected are children born into families with low incomes: They are more likely to quit college or to engage in crime, and they are more likely to become pregnant as teenagers.

“Poverty Interrupted”, a project by the Ideas42 think tank, uses behavioral economics to explain and attempt to break the vicious cycle of poverty. Behavioral economists view poverty as a situation that causes people to deviate...

About the Author

Ideas42 is a think tank that uses behavioral science, especially economics, to design solutions to problems such as poverty, under-education, HIV and family planning. Ideas42 grew out of research programs in psychology and economics, and works with nonprofit organizations, government bodies and businesses.

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