The Significant Cause of Poverty

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The Significant Cause of Poverty
Do you want the gap is between the rich people and poor people? A statistic found from Internet has shown that combined wealth of the world’s top 225 richest people was equal to the combined wealth of one trillion of poor people in 1998, which equal to the combined annual income of the world’s 2.5 billion poorest people. Now this situation is even worse, poverty mainly appeared in undeveloped countries to overpopulation and poor financial situation of the governments.

The first major cause of poverty is overpopulation that is always happens in developing countries. Overpopulation means that there are too many people living in a specific area to share the limited resources; therefore, people in that area is not able to own and share enough resources such as water, electricity, and food. It is because the demands for all these resources are greater than the supply of the resources; hence, there is a shortage for the resources. Moreover, poverty gets more serious as the population of the particular area with poverty keeps increasing rapidly. Because of this situation, people will become more and more poor as they share the limited resources. For instance, the situation in China is a good example of poverty because of overpopulation. It has approximately 1.3 billion people sharing the limited resources; therefore, the supply of the resources is not enough for all the Chinese. So almost half of the Chinese cannot get enough resources, and they remain poor.

The second major cause of poverty is poor financial situation of a government, which happens in undeveloped countries. People in the poor countries have a low educational level and low technological level because the government doesn’t have enough money to spend on the educational and technological areas. That’s why the countries with poverty have few professional laborers, high skilled workers and knowledgeable workers; thus, they have low productivity. They are not able to...