People living in poverty can significantly impact the economy in various ways. Their limited purchasing power reduces consumer spending, affecting businesses and economic growth. Lower tax contributions from impoverished individuals reduce government revenue, potentially hindering public services and infrastructure development. Social welfare programs aimed at assisting the poor can strain government budgets. Poverty's toll on workforce productivity due to limited access to education and healthcare can hinder overall economic progress. Moreover, higher crime rates associated with poverty lead to increased law enforcement and justice system expenses. Addressing poverty through targeted policies can help alleviate these effects and foster a more inclusive and robust economy.