Poverty penalty

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.^[1] An earlier exploration of this was a 1960s 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.^[2]

The impact of the poverty penalty phenomenon has been observed across a range of products and services, including energy^[3] and insurance.^[4]

• Cost of poverty
• Extreme poverty
• Poverty reduction
• Progress and Poverty

The factors causing poverty and suffering

• Brown, DeNeen L (18 May 2009). "The High Cost of Poverty: Why the Poor Pay More". Washington Post. https://www.washingtonpost.com/wp-dyn/content/article/2009/05/17/AR2009051702053.html?sid=ST2009051801162. 

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