Quote image editor
“Mankiw’s famous quote was ‘People react to incentives, all else is just explanation’. However, poor people are helpless. They do not have or face a willingness to pay choice in helpless scenarios. A literal application of definition of demand would imply that the poor people do not have demand for the essential goods. Their wants are not backed up by purchasing power. Economics does not differentiate between essential and non-essential wants. If a rich person demands golf course in a locality near a big population of homeless people, then, the golf course will be built first if he can afford it. Are poor willing to give fewer dollar votes by choice to buy the essential needs? Is it their conscious and sovereign decision?” — Salman Ahmed Shaikh