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Old 2017-09-09, 20:29   #1
MooMoo2
 
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Default How widespread is global poverty?

I had a classic first world problem last week - my home's air conditioning system broke down during a heatwave, so I had to drive 2-3 hours to my vacation home to cool off (the repairman couldn't come for a few days, and I was unsuccessful in trying to fix it myself).

On the way there, I stopped by a store to get a smoothie. Just outside, there was a charity booth saying something like "Over a billion people live on less than $2.50/day. Can you spare some change?". Someone stopped by and said that almost nobody lives in such dire conditions, and that their claim was incredibly misleading because:

- a dollar in a developing country buys you a lot more than a dollar in a first world country
- people who make that little in developing countries are often farmers in rural areas, where they usually don't have to pay for things like rent, water, food, property taxes, home insurance, etc. Most of them also have land and livestock-owning friends and extended family they can rely on when things go south.

He then said that he would rather live on $2.50/day in a developing country than live on $12.50/day in the US, which he claimed was impossible without having to rely on stealing, panhandling, or dumpster diving. Is that guy right? Do more than a billion people really suffer in extreme poverty, and is it even possible to live on less than $400/month (or its equivalent) in a developed country?
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Old 2017-09-09, 20:43   #2
science_man_88
 
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Quote:
Originally Posted by MooMoo2 View Post
I had a classic first world problem last week - my home's air conditioning system broke down during a heatwave, so I had to drive 2-3 hours to my vacation home to cool off (the repairman couldn't come for a few days, and I was unsuccessful in trying to fix it myself).

On the way there, I stopped by a store to get a smoothie. Just outside, there was a charity booth saying something like "Over a billion people live on less than $2.50/day. Can you spare some change?". Someone stopped by and said that almost nobody lives in such dire conditions, and that their claim was incredibly misleading because:

- a dollar in a developing country buys you a lot more than a dollar in a first world country
- people who make that little in developing countries are often farmers in rural areas, where they usually don't have to pay for things like rent, water, food, property taxes, home insurance, etc. Most of them also have land and livestock-owning friends and extended family they can rely on when things go south.

He then said that he would rather live on $2.50/day in a developing country than live on $12.50/day in the US, which he claimed was impossible without having to rely on stealing, panhandling, or dumpster diving. Is that guy right? Do more than a billion people really suffer in extreme poverty, and is it even possible to live on less than $400/month (or its equivalent) in a developed country?
well you also have consider taxation. here if it's taxable income 12.50 per day would be about $387.5 pretax in a 31 day month after income taxes on it , it would fall to about $295.31 and then that's before sales taxes, which if it was on everything here would take the amount you could spend before sales tax would drop to about $256.80 which then equates to about $8.28 per day.
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Old 2017-09-09, 21:06   #3
GP2
 
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well you also have consider taxation. here if it's taxable income 12.50 per day would be about $387.5 pretax in a 31 day month after income taxes on it
$12.50 per day is $4562.50 per year if you work all 365 days. A little searching on the Internet shows that you don't pay any income tax if your income in 2017 in Canada was $11,635 or less. As for sales taxes, those don't apply to some basic items like food.
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Old 2017-09-09, 21:16   #4
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Originally Posted by GP2 View Post
$12.50 per day is $4562.50 per year if you work all 365 days. A little searching on the Internet shows that you don't pay any income tax if your income in 2017 in Canada was $11,635 or less. As for sales taxes, those don't apply to some basic items like food.
my grocery bill usually adds up to more than $4 a day and with my job placement I spend about $4 in tickets per work day. so it also depends on what you call necessities etc.
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Old 2017-09-10, 02:48   #5
storm5510
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My grocery bill averages around $30 USD per week. This is about $4.28 per day. That's about all I can do and take care of everything else. My auto insurance goes up about a dollar per month. It has been this way for two years. The electrical rate here is $0.12 per kWh. With that, I still managed to end up with two $85 service bills in a row. All this combines and the end result is less on the shelves to eat.
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