AGENDA Thurs 5/3 & Fri 5/4
•QOD #33: Hungry Planet
•Global Economics
•CIA Factbook
•HW: Stock Market Reflection / Printout
Hungry Planet
QOD #33: Do you see what I see?
•
Analyze each photo using the following :
1. What country does the family live in?
2. What do you think the average weekly
expenditure for food is in that country?
3. What observations can you make about the
food items shown in the picture?
4. What suggestions/comments do you have
about this family in regard to healthy lifestyles,
budgeting, etc.?
5. Are you surprised by the actual food
expenditure amount?
Germany: The Melander family of Bargteheide
Food expenditure for one week: 375.39 Euros or $465.57 USD
United States: The Revis family of North Carolina
Food expenditure for one week $341.98
(Sure hope most American families eat more fresh fruits and vegetables and less junk food than this family.)
Italy: The Manzo family of Sicily
Food expenditure for one week: 214.36 Euros or $265.86 USD
Poland: The Sobczynscy family of Konstancin-Jeziorna
Food expenditure for one week: 582.48 Zlotys or $176.37 USD
Mexico: The Casales family of Cuernavaca
Food expenditure for one week: 1,862.78 Mexican Pesos or $144.30 USD
Egypt: The Ahmed family of Cairo
Food expenditure for one week: 387.85 Egyptian Pounds or $68.64 USD
Ecuador: The Ayme family of Tingo
Food expenditure for one week: $31.55 USD (does not have its own monetary unit)
Bhutan: The Namgay family of Shingkhey Village
Food expenditure for one week: 224.93 ngultrum or $4.79 USD
Chad: The Aboubakar family of Breidjing Camp
Food expenditure for one week: 685 CFA Francs or $1.29 USD
Classifications of countries:
(new and old)
• Industrialized (developed)- a country with
a relatively high per-capita GDP or GNPexamples US, UK, Canada, Italy, Germany,
Japan
• Industrializing a country in the process
of developing and industrializing –
examples: South Africa
• Least industrialized (Less- developed )- a
country with a relatively low per-capita
GDP or GNP- examples: Ghana, Haiti,
North Korea, Vietnam, Ethiopia
International Poverty line
• Traditionally, poverty has been measured by the lack of a
minimum income (or consumption level) necessary to meet
basic needs.
• Measuring poverty on a global scale requires establishing
a uniform poverty level across extremely divergent
economies, which can result in only rough comparisons.
• The World Bank has defined the international poverty line
as U.S. $1 and $2 per day Purchasing Power Parity (PPP),
which adjusts for differences in the prices of goods and
services between countries.
• In 2008, the World Bank came out with a revised figure of
$1.25 at 2005 purchasing-power parity (PPP).
• The $1 per day level is generally used for the least
developed countries, primarily African; the $2-per-day
level is used for middle income economies such as
those of East Asia and Latin America.
Determining the line
• Find total cost of all the essential resources that an average
human adult consumes in one year (needs-based approach in
that an assessment is made of the minimum expenditure
needed to maintain a tolerable life).
• This was the original basis of the poverty line in the United
States, whose calculation was simplified to be based solely on
the cost of food and is updated each year.
• In developing countries, the most expensive of these resources
is typically the cost of housing. Economists thus pay particular
attention to the real estate market and housing prices because
of their strong influence on the poverty threshold.
• Individual factors are often used to account for various
circumstances, such as whether one is a parent, elderly, a
child, married, etc. The poverty threshold may be adjusted each
year.
• The poverty threshold is useful as an economic tool with which
to measure such people and consider socioeconomic reforms
such as welfare and unemployment insurance to reduce
poverty.
Percentage population living on less than $1.25 per day 2009
Percentage population living on less than $2 per day 2009
The 2008–09 poverty threshold was measured according to the Department of
Health and Human Services Poverty Guidelines which are illustrated in the
table below.
Persons in Family Unit
48 Contiguous States and D.C.
Alaska
Hawaii
1
$10,830
$13,530
$12,460
2
$14,570
$18,210
$16,760
3
$18,310
$22,890
$21,060
4
$22,050
$27,570
$25,360
5
$25,790
$32,250
$29,660
6
$29,530
$36,930
$33,960
7
$33,270
$41,610
$38,260
8
$37,010
$46,290
$42,560
$3,740
$4,680
$4,300
For each additional person, add
SOURCE: Federal Register, Vol. 74, No. 14, January 23, 2009, pp. 4199–420]
Poor or Rich?
• By this measure, in 2005 there were 982 million
people out of the developing world's 4.8 billion
people living on $1 per day, while another 2.5
billion (40% of the world's population) were
living on less than $2 per day.
• In 2005, The poorest 40% of the world
population accounted for 5% of global income.
• The richest 20% accounted for 75% of world
income, and the richest 10% accounted for
54%.
Infant mortality
• Infant mortality rate- the number of
children who die before their first birthday
out of every 1,000 live births
• What is the United States infant mortality
rate?
• How does the US rank in the world? #1,
top 5?
• What countries are best or worst?
Answer
http://en.wikipedia.org/wiki/List_of_countries_by_infant_mortality_rate
References
• Arnold, R (2001). Economics in our times, 2nd edition.
Chicago, IL: National Textbook Company .
• http://www.infoplease.com/ipa/A0908762.html
• http://en.wikipedia.org/wiki/Poverty_in_the_United_States
• http://en.wikipedia.org/wiki/Poverty_threshold