And that struggle is only growing as the cost of basics, such as food and health care, rises. People can argue about the prolonged widespread of poverty is morally acceptable or what an acceptable level of inequality might look like, but there is nothing acceptable about poverty. There are various flaws in the methodology that is being used to determine how many families are considered poor by certain standards. The official poverty rates are calculated by comparing pre-tax income to the poverty level. Policymakers need to place more stress on strengthen the middle class, as well as the supporting programs that provide education and training to low-income families.
Microfinance is that a small loan lends from an institution to a poor person who might not have collateral, which aims to help them to escape from poverty (The Economist, 1998). However, whether this goal will be realized or not is controversial. This essay will attempt to argue that although the application of microfinance may have defects, it cannot be denied that it is a useful method to alleviate poverty. In order to demonstrate this, it will be shown that argument made against microfinance regarding firstly the high interest of it which leads to increasing suicide rate and secondly the high risk of microfinance may not be true. Meanwhile, several evidence will also be given to prove the advantages of microfinance.
Less developed countries are poor because they do not have adedquate capital resources for investment. Professor Nurkse stated that: “The main reason of vicious circle of poverty is the lack of capital formation”. A country which has poor finance is trapped in its own poverty. A country can get rid off from poverty if its rate of capital formation increases than the rate of population growth. Nurkse said: “On both sides of the problem of capital formation in poor countries a vicious circle exists.” So capital formation is the key to economic development by demand and supply of
The costs of living in poverty are magnified by adverse outcomes like increased crime in low income neighborhoods, limited access to healthcare facilities for the sick, low productivity, etcetera (Gwendolyn, 2012). This reduces the ability of poor people to participate in productive economic activities, while the burden on welfare facilities increases. Human capital development is essential for economic growth where an empowered individual contributes to economic development through increased productivity and innovation. While the individualist ideology on poverty, to some extent, makes sense, poverty is much more of as a result of institutional failures than individual failures. Previously, efforts of poverty eradication have been focused on mitigating the effects of inequality.
Solutions to Poverty Poverty is a major problem in the United States today. Social, economical, political, and cultural factors all contribute to poverty. Education and economic development are two major issues that will help prevent poverty. The United States Census Bureau defines poverty as an "economic condition in which people lack sufficient income to obtain basic needs for food, housing, clothing, health services and education." In other words, poverty is powerlessness, a lack of representation and freedom.
Often times, the middle and upper classes underestimate the amount of poverty left in our society. In “The Singer Solution to World Poverty,” Peter Singer reaches out to the lucrative to help the misfortune. Although Singer believes that, the wealthy has a responsibility in providing help to the less fortunate, Singer conducts theories in which he explains how we as Americans spend more on luxuries rather than necessities. If the wealthy are fortunate enough to go out to fancy meals, they should be able to provide food for a poor family or medicine for the children. The negative attributes outweigh the positive due to the lack of supporting detail from the positive in which helps us better understand that helping people is the right thing to do rather than sitting back and doing nothing but demands that Americans donate every cent of their extra money to help the poor.
Developing countries are closely linked to debt. This is because developing countries needs to allocate more funds to resolve debt crises. Debt can create a negative effect to the host country’s economy and the social condition of a country. This issue of indebtedness is usually solved using domestic capital. Since developing countries have low income, therefore they have low level of savings.
This form of support was costly and indiscriminate and did not control or encourage employment. Due to recognition of high unemployment and poverty the Poor Law (1834) was amended, claiming that a person had to be destitute or unemployable in order to receive assistance. [Alcock. P p11] According to Ditch (1996) this law was established to "deter a person from benefiting or seeing it as a substitute for employment"(p25). In (1899) Rowantree conducted a study of people experiencing poverty in York, Absolute poverty based on income.
This paper will look at ways in which these causes can be combated and at the same time evaluated in regards to it’s positive and negative aspects. Education has long been a problem in society, because the lack of this essential tool of survival doesn’t allow for growth of any sort. It is a known fact that the risk of poverty usually decreases as people get more schooling. Poor education can be either a cause of poverty or an effect. Young people who drop out of school may be poor because they lack the required skills needed to get good jobs, therefore adding to a system that forces them to only be able to live in low-income, economically starving areas.
Confucius once said, “In a country well governed, poverty is something to be ashamed of. In a country badly governed, wealth is something to be ashamed of.” Poverty is a hindrance to each and everyone’s success. It is the deprivation of basic human needs like water, food, cloth and of course money. Money truly makes the world go round. It is necessary for us to survive and satisfy our needs, but how about those poor people?