The class analysis of poverty: is the underclass living off the socially available surplus?
In a recent article Erik Olin Wright argues that the U.S. underclass is a drain on the socially available surplus and thus a hindrance to capital accumulation. Wright's argument is not supported by available evidence from the United States, Canada, and the United Kingdom on the state's distributive activities. This evidence suggests that the social welfare necessary to sustain the underclass is provided by transfers from wage and salary earners rather than from profit.
Chernomas
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Department of Economics University of Manitoba, Winnipeg, Canada.
Sepehri
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D002170:Canada; D004467:Economics; D011057:Politics; D011203:Poverty; D014478:Unemployment; D006113:United Kingdom; D014481:United States