The Economics Of Poverty: Elements Of Circulation Perspective

The supreme objective of economics is how to make the people get a better life. The primary poverty issue of China is in the country. Over the last 20 years, the country poverty population is on the decrease due to the economics reform. But the non-income poverty is also at large, and the poverty issue of floating population (mainly designated to migrant rural workers) and some city people are getting important.Countrymen have a natural association with farmland, but why the main poverty population comes from fertility area? It looks like a paradox. The main part of the paper starts with production method. I explain our poverty issue through analyzing the production factors and laborers, and try to answer the following questions: (1) Why the household responsibility system can't bring the peasant richness after they don't hungry? What are the anti-poverty measures and its conditions? (2)Why the anti-poverty credit fund yields little results? Why the mutual credit contract is more efficient than the formal credit institution (e.g. Agricultural Bank of China)? Why "little" credit amount is necessary in the rural credit market? (3)How the initial inequality of the government's allocation in public resource affects the laborers' stuff? And how to make a more inequality in wealth? How to prove it with econometric analytical measures? (4)The degeneration of environment resources is one of the main reasons of the rural poverty, and vice versa? (5)What's the main reason of the city poverty? Why the wages of migrant rural workers are very low? What's the feasible poverty reduction program?The household responsibility system has its shortcoming, and the condition of agricultural collective is the reduction of residual labor force. I bring forward a feasible poverty reduction program that is joint-stock institution with land usufruct + people reduction in the first industry. I prove that the most efficient contract comes from the mutual bargaining parts through models. I give a new credit system with more rural middlemen. The initial inequality of the government's allocation in public resource makes difference in the laborers' stuff, and this causes the diversity in their production ability, and still makes a big discrepancy in their revenue through labor market. The corresponding anti-poverty step is to increase the common products in rural areas. It has multi-ply significance. The econometric analytical measures demonstrate the above viewpoints. Also through econometric analytical measures, we find that the low-level areas exploit the environment resources excessively. The feasible poverty reduction program in infertile areas may be the transmigrant plan. The city (identity) poor population and migrant rural workers have a common characteristic that they have not a strong organization. The reason of the low wage of the migrant rural workers is that their labor value is only at the subsistence level; furthermore they suffer from institutional discrimination. We should treat all the people equally and extend the social security to the migrant rural workers. The dual social structure has changed into triple one along with the appearance of the migrant rural workers. It's a piece of advancement. The migrant rural workers group is a transitional estate, and they will become the genuine industrial workers.