Unemployment particularly amongst the youth can be described as the mother of all social evils, because in many cases it is a source of crimes, homelessness, frustration, loss of confidence, drug addiction and family tension (Qayyum,2007). Apart from these social troubles youth unemployment also has certain negative impacts on the economy. It is an obvious observation that the consumption expenditures for the young people are much higher than the old people. In more technical words it can be said that marginal propensity to consume for the youth is relatively large than the old ones .So a larger proportion of young unemployed persons having zero earnings adversely affect the aggregate consumption in the economy. When the aggregate consumption falls the investment incentives for the investors also gets reduced.
Not only are people being pushed out of their neighbourhoods and homes by those willing to pay more, there is an apparent price hike for those who desire to stay in their homes. Non-integrated/non-gentrified communities start off with higher poverty rates while simultaneously having low homeownership. Then people with higher incomes move in causing a raise in the cost of living within the community. Despite this the working class pay and low income remain the same for the original residents who can no longer afford to live in what once was their home. The social cost of the actions are extremely high and cause just as many community issues as household familial issues.
There are pros and cons of brain drain. Mostly it is a negative impact on the country. Brain drain also known as talent loss. It can lead to shortage of high skilled workers, which is mostly professionals and technicians that working abroad. Malaysia’s brain drain is intensive, not necessarily because of too many are leaving the country but because the skills base is too narrow.
The general population of most countries do not have the money to buy a house, that’s why most of them are renting it and move to a place to another depends on the situations. This problem is connected to the economy of the country, if the real estate is in its worst shape people will pay a lot of money to get a simple house to live in. According to Martin (2015) discusses that the raises of the housing prices is making it worst to the people with the low income, and that is the major cause why people become homeless and poor in the society, and also the taxes on the houses are contributing in making people pay more money. Therefore, there should be an existing to the low income individuals to help them keeps their poverty, and make it less payments on
The toll of an incarcerated parent on their child is not favorable. Not only is the child at a disadvantage support wise, but also financially. This is further supported through demographics. As poverty increases for a family, so does the rate of incarceration. By being in a single parent home, with only one income, and an established predilection towards the prison system, the risk of incarceration is amplified.
This is because it would increase the unemployment rate, harm worker health and step up living expense. Minimum wage law tends to have a worse effect on the employment rate. In fact, 90% of the company in Hong Kong is small and medium enterprises and their daily operation is already difficult. By setting up the SMW, those companies are required to follow the law but most of them are not able to afford the extra expenses from pay rise. According to Schmitt (2013), the minimum wage has slight or even no noticeable effect on the employment rate in that the cost generated by minimum wage is large relative to most of the firms.
Other aspects include education, health services and information to gain support(REF). Relative poverty can be defined as a household earning less than the median and is subject to change with economic growth(REF). On average 8% of families in the UK are in persistent poverty, this hardship stems from ill health, lack of jobs and money management(REF). Similarly, capability poverty can keep a family or individual in poverty due to living beyond their means and sacrificing basic necessities(REF). Health issues occur due to malnourishment, resulting from buying unnecessary objects whilst neglecting themselves or children in the family(REF).
In other words, where a tiny minority have all the money. The features of rich or developed countries for example, is the presence of a middle class, but, recently we have seen even the western countries are gradually losing their middle class, hence the increasing number of riot and clashes. In a society, poverty is a very harmful factor that can destabilize the entire country. Hence, there will be lack of intelligentsia and educated intellectuals to run the country and therefore poverty issue will remain (Poverties, 2011). Besides that, poverty can also cause high infant mortality and annual death rate, increase crime rate since people turn desperate to survive in the face of poverty and
Furthermore, the effects of poverty are said interrelated as they do not occur alone. According to Wilkinson and Pickett (2014), when there are inequalities in the country it resulted in poorer health, lower educational attainment, higher crime rates, lower spending of social capital and lower cooperation with and trust of government. All these resulted from poverty actually affect the political stability in developing world. Inequalities in wealth distribution often link with the living condition of the people in country. Inequalities basically widen the gap between the rich and the poor (Shah, 2014).
There is a risk of loss of talent and skills, since a great amount of university graduates are unable to find a job and put their knowledge and capabilities into producing innovation and contributing to economic growth. Furthermore, having a large share of the young workforce unemployed, not only leads to reduced productivity and gross domestic product (GDP), it also increases the economic costs for the country, since there is a need for more money to be paid out on social grants and less money coming in from taxes. High unemployment rate also pose as a threat to the safety and security of Gauteng province, youth are most likely to resort to other measures such as