poverty

Examples of poverty in the following topics:

• Defining and Measuring Poverty

  • Absolute poverty is poverty to the extent of which an individual is deprived of the ability to fulfill basic human needs (i.e. water, shelter, food, education, etc.).
  • In observing poverty over time, the rates of poverty alongside the advances in economic production, demonstrates the value in technological and economic progress.
  • Poverty is generally divided into absolute or relative poverty, with absolute concepts referring to a standard that is consistent over time and geographic location.
  • Income distribution measures lend insight into relative poverty levels.
  • One interesting perspective is the Multidimensional Poverty Index (MPI).

• Poverty and Inequality

  • Their faith is clouded, however, by the fact that poverty persists in many parts of the country.
  • Government anti-poverty efforts have made some progress but have not eradicated the problem.
  • In 1998, a family of four with an annual income below $16,530 was classified as living in poverty.
  • What is more, the overall figures mask much more severe pockets of poverty.
  • Families headed by single mothers are particularly susceptible to poverty.

• Measurement Problems

  • Inequality, poverty and economic mobility in particular have a number of measurement challenges.
  • The primary drawback to this approach is that it measures relative poverty (as opposed to absolute poverty).
  • However, due to the fact that poverty lines are different in different countries (because there is no standard way in which to enforce setting and measuring the poverty line) it is not relative.
  • One interesting risk in measuring poverty is the concept of voluntary poverty, or the active pursuit of living at the absolute bare minimum.
  • This graph illustrates the different percentiles of individuals under the poverty line across the world.

• Arguments in Favor and Opposed to Economic Growth

  • Economic growth alleviates poverty by increasing employment opportunities and labor productivity.
  • Economic growth has many positive effects, but a society must not favor economic growth over solving pressing social issues such as poverty.
  • For example, in a country with low inequality, a country with a growth rate of 2% per head and 40% of the population living in poverty can halve the poverty in 10 years.
  • In contrast, if the same country has high inequality it will take nearly 60 years to achieve the same level of poverty reduction.

• Microeconomics

  • Urban Economics: challenges faced by cities, such as sprawl, traffic congestion, and poverty.

• Personal Income

  • The Census Bureau also produces alternative estimates of income and poverty based on broadened definitions of income that include many of these income components that are not included in money income.

• The Global Economy

  • In some cases, the fund eased its demands for deficit reduction so that countries could increase spending on programs designed to alleviate poverty and protect the unemployed.

• Global Impacts

  • Another indirect global impact that occurred as a result of the economic collapse is political instability, primarily due to the inability of developed nations to pursue social welfare investments and global poverty reduction processes during recessionary times.

• Typical Lengths of Unemployment

  • Individual: For individual people, unemployment increases poverty, creates poor labor mobility, and impacts self-esteem.

• Defining Unemployment

  • Unemployment wastes resources, generates redistributive pressures and distortions, increases poverty, limits labor mobility, and promotes social unrest and conflict.