Poverty penalty

Jump to navigation Jump to search

The poverty penalty describes the phenomenon that poor people tend to pay more to eat, buy, and borrow than the rich. The term became widely known through a 2005 book by C. K. Prahalad, The Fortune at the Bottom of the Pyramid.[1]

An earlier exploration of this was a 1960s sociology study published as The Poor Pay More which examined the ways in which retail patterns and a lack of consumer options allowed marginal retailers such as door-to-door salesmen, "easy credit" storefronts and the sale of installment credit agreements to extract profits from low-income buyers, with fewer options and less sophisticated consumer habits.[2]

References[edit]

  1. ^ Prahalad, C. K. (2004). The fortune at the bottom of the pyramid (2. print. ed.). Upper Saddle River, NJ: Wharton School Publ. ISBN 0-13-146750-6.
  2. ^ Caplovitz, David (1967). The poor pay more : consumer practices of low-income families (1st Free Press pbk. ed.). New York: Free Press. ISBN 0-02-905250-5.

External links[edit]