Negative Effects Of Poverty

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Did you know that 22,000 children die every day due to poverty? And they “die quietly in some of the poorest villages on earth, far removed from the scrutiny and the conscience of the world. (Shah, 2013). Poverty is the deprivation in well-being where the poor have insufficient income and are on the margin of bare subsistence. Poverty concerns various aspects, namely hunger, lack of shelter and education where people are unable to fulfil basic necessities of life. In response to the consequences triggered by poverty, including genocide and increased death rates, Shaw (1906) stated “the greatest of all evils and the worst of all crimes is poverty”. Poverty has become a crucial fact worldwide due to the negative implications raised and has to…show more content…
Unemployment cuts off sources of income for breadwinners which results in financial crisis and reduces the overall purchasing capacity of those jobless to maintain basic needs including fundamental provisions such as eating healthy food and purchasing health care. This in turn brings poverty followed by increasing burden of debts by those jobless who have to borrow from financial institutions to support their daily expenditure. Nowadays, unemployment rate is increasing drastically in countries cursed by poverty. For instance, Haiti with a high unemployment rate of 40.6% in 2010 led to high poverty rate of 77% (Sauter, Hess & Weigley, 2012). In short, unemployment creates financial instability, leading to a vicious cycle in social mobility and ultimately…show more content…
The rising disparities among distribution of wealth widen the gap between the rich and the poor, hence perpetuating the cycle of poverty. Income inequality hinders resources from being allocated well. The free-market system functions on the effective demand and supply of goods and services. So, the poor who have insufficient economic votes cannot cause any impact on the market demand and have a say on the equilibrium price of goods and services. Due to imbalance distribution of wealth, poor population is incapable of taking part in economic activities to alleviate

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