Causes of Poverty

Topics: Social class, Working class, Poverty in the United States Pages: 3 (1176 words) Published: August 31, 2013
Causes of Poverty

In Chapter One of Essentials to Economics, we learned the basics of what poverty is. However, in Chapter Two, we got more into how it forms and why it is so difficult to solve. Poverty all over the world has always been an issue, but lately it seems to be rising. According to Global Issues, “Causes of Poverty”, statistics say there were nearly a billion humans who were not able to read or write when they entered the 21st century, over three billion people live on $2.50 or less every day, and there are children today who still don’t have clean water to drink, shelters to live in, or have died before the age of five due to living conditions. Obviously people are trying to combat poverty by rising together in groups to help raise money for children in poverty or by building homes for the homeless, but it is still not enough. Despite all of these actions, there are still billions who live in poverty and die from it. What are the causes of poverty? There are various discussed causes including bad government intervention, corrupt businesses with power and influence, social standing, and lack of responsibility. Many people have often looked at our government with resentment, claiming that it is to blame for all of the bad things that happen to us. Honestly, that’s part of the truth. It’s called government failure, and this happens when the government intervenes with the economy and instead makes even more of a mess of things. One of the things that the government does that often causes harm to our economy is inflation; inflation is when the average price of goods and services are hiked up (Essentials of Economics 215). Usually this is combined with minimum wage, which is often either kept the same or increased. However, this creates an effect—when one ups the minimum wage, the worker is happy but the employer is not. So they look for the more skilled worker and hire less for the higher wage. This means a lot of people who are not as skilled are...

Citations: Shah, Anup. “Causes of Poverty.” Global Issues. 24 Mar. 2013. Web. 18 Aug. 2013. <>.
Fisher, Gordan M. "The Development of and History of the Poverty Thresholds."  Social Security, n.d. Web. 18 Aug. 2013. < >
"Can Government Eradicate Poverty? | Reason For Liberty." Reason For Liberty RSS. Reason For Liberty, n.d. Web. 18 Aug. 2013. <>.
Shah, Anup. “Corruption.” Global Issues. 4 Sept. 2011. Web. 18. Aug. 2013. <>
Deane, Michael. “From Poverty to Power: Celebrities Who Started With Nothing.” Investopedia. 25 Mar. 2010. Web. 18 Aug. 2013. <>
Woods, Thomas E. “Government Intervention for Economy Makes Things Worse.” The Daily Reckoning. 6 May 2009. Web. 28 Aug. 2013. <>
Schiller, Bradley R. Essentials of Economics. New York: McGraw-Hill, 1993. Print.
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