Oh neat; I’ve been calling it the “economy of the poor” since I can’t find any proper conversation on it. This is the first time I’ve seen someone bring it up
But I think the notable aspect is not that they have recourse, it’s that the economics properly scales down. Can’t afford 20 cigarettes? An Indian shop will sell you 10. Can’t afford 10? They’ll sell you 1. Can’t afford 1? They’ll sell you half a cigarette.
Can’t afford clean water? They’ll sell you mildly dirty water. Can’t afford mildly dirty water? They’ll sell you dirty water.
Can’t afford a modern, well built, safe car? How about one with 3 wheels? No doors? No AC? 10 MPG? The crumpling structure of a tin can? An engine with less HP than a lawnmower?
In the US, there’s an arbitrary cutoff where you simply aren't allowed to be sold goods and services by anyone in normal society. It’s not about giving recourse; it’s about not actively trying to ostracize them as a separate class of humanity.
You have to actively work to stop “functional poverty” from existing. In any normal setup, it’s just more of the same economy as otherwise.
