Topic: Poverty and inequity – addressing key factors/key stakeholders –Factors of Poverty | By Matt French|
Table of Contents
3. Lack of Resources 2
4. Lack of Jobs3
4. (i) Supply and Demand Graph4
5. Unequal Distribution of Wealth4
5. (i) World Consumption Graph5
6. Overpopulation 5
In a market, the price of labour is referred to as ‘Wage Rate’ (Buck, 2008).
Living in a poor condition with little or no money, goods or means of support (Random House Dictionary, 2013).
An item one has access to. E.g. health, education, food, water. (Social Inclusion, 2013)
“Housing project: a housing development that is publicly funded and administered for low-income families.” (Princeton, 2013)
Poverty affects millions of people worldwide. According to Shah (2013), nearly every second child is affected by poverty. Supply and demand is a huge issue when it comes to poverty. The demand for essentials such as water and food is so high compared to the supply that many people starve every day. There is also a demand for jobs but not enough to go around. The World Bank (2008) deemed that the poverty line for the world is $1.25 US per day. Shah (2013) reveals that in 2005 1.4 billion people worldwide were living below the poverty line. There are two forms of poverty; they include relative poverty and absolute poverty. Absolute poverty means people living below the poverty line. Relative poverty is people living below a certain wage per week subject to what country they live in.
3. Lack of resources
It is a known fact that there is an increase in demand for resources but a shortage of supply in many developing countries. That being said there are many nations that live in poverty due to this fact. This is obvious in developing countries such as Africa and India where there is a scarcity of resources such as food and water. Many people in these countries live below the poverty line and die from preventable deaths relating to the distribution and scarcity of resources. The increases of the price of wheat, rice and other basic foods have been devastating for poor households around the world (Polaski, 2008). In developing countries there is a lack of access to water which is a necessity. 1.1billion people have inadequate access to a sufficient water supply (Shah, 2013). There is a lack of public housing resources in Australia. In 2012, Jordan (2012) states that as many as 40,000 people in Australia are on the waiting list for public housing. This forces many Australians onto the private rental market which increases demand. This increase in demand has forced a rise in rental prices and made it so many low earning Australian workers are struggling to afford to rent their houses.
4. Lack of Jobs
A lot of people live in poverty due to a lack of income caused by not having a job. Economy Watch (2010) states that:
“Unemployment leads to financial crisis and reduces the overall purchasing capacity of a nation. This in turn results in poverty followed by increasing burden of debt.” In third world countries a lot of the labour workforce is surplus labour (Andrews, 2009). This is particularly a problem in the agricultural sector of the workforce. This creates more jobs but the marginal productivity become lower and may even become negative. During economic crisis, this excess group of labour workers are the first to be dismissed as they are not essential to the business and this causes them to have money issues. In India lack of employment is a major factor of poverty. Even during times of good harvest in the agriculture industry the Indian farmers are not employed for the full year (Economy Watch, 2010). Households are the ones that supply labour to businesses. The...