Our kids come first – how often is this heard? From parents, politicians, and do-gooders alike. Children are our future; we should invest in them, with programs like pre-K.
As an example, The Economist recently noted a program in Jamaica teaching mothers of chronically malnourished youngsters how to play with them in ways that promote verbal and physical skills. Those kids grew up to earn higher incomes than “untreated” kids – even those who had not been malnourished.
The Economist was making a broader point about poverty. Many conservatives think the poor are basically responsible for their situation, while progressives blame society. Conventional economics suggests that the answer is to give people opportunities to earn their way out of poverty, and many millions have indeed done so. But it’s not quite that simple; poverty has a tendency to be self-perpetuating because of its behavioral effects.
Poor people often make bad economic decisions, not because they are irrational or foolish, but because they lack access to the necessary information; their poverty may make them feel powerless as well as overly risk-averse; and the resulting stressful existence is not conducive to calm deliberation. They also face structural obstacles – as I’ve written, it’s costly to be poor.The Economist points out that whereas traditional anti-poverty programs stress supplying resources, a behavioral approach focuses instead on how choices are made and how they can be improved. For instance, sending kids to school should be a no-brainer for their future well-being; yet in many poor countries, parents often don’t send them; however, some Latin American programs giving cash payments to those who do have dramatically boosted school attendance.
There’s some truth in the old saw about giving people fish versus teaching them to fish. But teaching fishing may not be enough. People may need to be taught to want to fish.