The Solution To Ending Poverty By Joanne Goldblum

Joanne Goldblum is a social worker and established the National Diaper Bank, which distributes diapers for babies born into low income families. In Goldblum’s article, The Solution to Ending Poverty is in the Details, she discusses about how many low income families cannot afford basic hygiene products and how the government fails to optimize allocation of resources. Goldblum strongly believes that the government intervention is important for eradicating poverty in this country. Even though diapers are an inelastic product, low income families cannot afford the rising prices of an inelastic commodity. To control the rising prices, the government should set a price ceiling below the equilibrium, it would regulate the prices of diapers by making them affordable. However, the price ceiling could cause shortage of resources. Well off families could afford buying the diapers in a larger quantities and would cause a scarcity for diapers, eventually, low income families could not buy it. Goldblum proposes …show more content…
I personally believe for a nation to overcome poverty, the government should be able to provide its citizens with all the resources for an individual to become self-sufficient. Welfare economics concentrates on how the allocation of resources effects the economic well-being. The allocation of resources is most efficient when the product is consumed by the buyer who values the product the most highly, and when the goods are produced with the lowest costs. I believe that allocation of resources will be efficient, when an inelastic commodity is sold a cheaper rate for low income families. To make increase the efficiency of the allocation, I think that the government can promote research to find material that would make the production of diapers less expensive, so that the producers can sell them at a cheaper