Poverty penalty
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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."
An earlier exploration of this was a 1960's 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.
[edit] References
- The Poor Pay More by David Caplovitz, 1963.
- The Fortune at the Bottom of the Pyramid: Eradicating Poverty Through Profits by C. K. Prahalad, 2005. ISBN 0-13-146750-6.
[edit] Other Reading
- The High Cost of Poverty: Why the Poor Pay More http://www.washingtonpost.com/wp-dyn/content/article/2009/05/17/AR2009051702053.html?sid=ST2009051801162 By DeNeen L. Brown
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