Understanding Poverty: Causes, Effects, and Solutions

Understanding Poverty

Defining Poverty

Relative poverty refers to economic inequality within a society. Individuals or groups experiencing relative poverty have less access to goods and services compared to others.

Absolute poverty signifies the lack of resources to meet basic human needs, such as water, food, sanitation, shelter, clothing, and education.

People Affected by Poverty

Individuals facing poverty often experience disadvantages, including limited access to quality education and increased health risks.

Causes of Poverty

1. Unemployment or Underemployment: Lack of sufficient work opportunities to earn a living wage.
2. Old Age: Insufficient income after retirement.
3. Ill Health: Mental and physical health issues can hinder employment and increase expenses.
4. Lack of Social Welfare: Inadequate government support, such as pensions or sick pay.

Alleviating Poverty

1. Sustained Economic Growth: Increased GDP allows governments to invest more in poverty reduction programs.
2. Income Redistribution: Progressive taxation ensures the wealthy contribute more to support the less fortunate.
3. Support Measures: Providing subsidized food, cash assistance, free education, and minimum wage legislation can help alleviate poverty.

Measuring Living Standards

Standard of Living: The level of material comfort available to individuals or groups.

Human Development Index (HDI): A comprehensive measure of quality of life, considering standard of living, life expectancy, and education.

Examples of Poverty

Relative Poverty: High infant mortality rates, low literacy levels, and poor health conditions.

Absolute Poverty: Lack of adequate nutrition, limited access to education and healthcare.