Post
Topic
Board Economics
Re: Why do people stay poor?
by
Yemson820
on 08/06/2023, 23:41:00 UTC
There are a few main reasons why people stay poor:

1. Lack of opportunity - Some people live in areas with little economic opportunity and few jobs that pay a living wage. They may lack the resources to move somewhere with more opportunities.

2. Low skills and education - People with low education levels and few job skills often have difficulty finding well-paying jobs. They may lack the means to get additional training or education to increase their skills.

3. High costs and debt - People with high costs like rent, medical bills, student loans, fines, etc. often have little left over after paying for necessities. Debt can make it difficult to save money or build assets.

4. Structural issues - There are entrenched social, economic, and political factors that contribute to generational poverty. Issues like racism, discrimination, lack of access to capital, and weak social safety nets make it hard for some groups to escape poverty.

5. Limited social networks - People in poverty often lack social connections to people with resources and opportunities that could help them advance economically. Their social circles tend to consist of other people in similar economic circumstances.

6. Cultural factors - Some argue that aspects of culture within poor communities, like a lack of emphasis on education, proper planning, and delayed gratification, can contribute to the perpetuation of poverty. However, others argue that culture is more a result of poverty, not a cause.

7. Psychological factors - Living in poverty can cause stress, hopelessness and a lack of perceived agency that limits people's ability to plan and take steps to change their economic circumstances.

So in summary, a complex web of factors related to opportunities, skills, costs, structures, networks and mindsets can keep people trapped in the cycle of poverty. It typically requires concerted effort on multiple fronts to help people escape poverty permanently.