(What Are the Major Federal Safety Net Programs in the U.S.?). The obvious concern is what the government can improve within safety net programs to address poverty and decrease income inequality to assist families and individuals get out of poverty (Labor Markets & Poverty). While, America is alleged as one of the richest countries; lack of adequate shelter, housing, water and food supply, insufficient income, and living values are only a few examples of the effects from the economic crisis in the United States ( LEON-GUERRERO 32). In the Stanford (CPI) ‘Poverty and Inequality in 10 Well-Off Countries, 2010’ Data Table 2, the U.S. was the lowest ranking country in the well-off category, due to the low standards in
The problem is, the government doesn’t support school in rural areas to be a good one, because they don’t have such money to get chance and take good education. “The poor are getting poorer, while the rich are getting richer”. Thammasat University has said about poverty in Thailand because of salary with unbalance working. They explain about income of farmer who working hard and investor, the result is it has more difference. Farmer much working harder to get same income that they got before.
With the price of housing, food, etc. going up, and the value of money going down, the cost of living increase exponentially. The cost of living is something that affects everyone, rich and poor, meaning people who are lower middle class would end up being forced down into poverty, once again, increasing the poverty rate. The final way the counterclaim is disproven, is because the increase in taxes would likely offset any monetary gains people would be
Negative Effects of Population Explosion Population may be considered positive hindrance in the way of economic development of a country. In a 'capital poor ' and technologically backward country, growth of population reduces output by lowering the per capita availability of capital. Population can be a limiting factor for economic growth because of the following reasons: • Population Reduces the Rate of Capital Formation: In underdeveloped countries, the compostion of population is determined to increase capital formation. Due to higher birth rate and low expectation of life in these countries ,the percentage of dependents is very high. Nearly 40% to 50% of population is in the non productive age group which simply consumes and does not produce anything.
Statistics from the ministry of manpower (MOM) indicates that real income growth at the bottom 20th percentile was 2.3% per annum in 2013. The slow increase in income for the poor, coupled with rapid growth of the cost of living in Singapore makes it difficult for the poor to catch up and close the income divide. Furthermore, the author was surprised to discover that there is no minimum wage set out in Singapore. Over the years, as more foreign talents compete for jobs at lower expected wages, the income of the poorer families continues to be kept low. Today, as many as 150,000 families are estimated to earn less than $1,500 a month.
Economically talking India is known to be the rising-star. However, it also defeats many countries with its poverty levels. According to the World-Bank reports, in the year 2011 262.80 million; 21.9% of the Indian population lived under the conditions of poverty (i.e. $1.90 or less per day)cite. It is an obvious conclusion that, this situation brings many draw-backs to a nation.
Better job chances are very attractive for people. Although people are equipped about their career, they are not able to find a job in many countries and cities. Instability of economic status of people is crucial push factor that causes emigration. Moreover, people demand more money compare to past as cost of living standards increases. As a consequence of this, especially people who are well educated prefer migrating for better salaries.
A large economic inequality gap implies that the poverty levels are quite high and this implies that the country’s ability to provide amenities like health, education and security are crippled and this may eventually create economic burdens to the country. Acquired power shuffles among the rich can weaken tax policies in favor of the rich, thereby leading to low tax return collection and minimal funding of the economy due to lack of government revenue (Corak, 2013). Government Initiatives to Lower Economic Inequality a) Progressive taxation – governments and local authorities should tax the wealthy proportionally higher as compared to the poor and this will help to minimize the income inequality amount within the cities (Autor, 2014). b) Product subsidization or nationalization – by lowering the cost of basic services and goods such as healthcare, housing and food enables the government to effectively enhance the poor people’s purchasing power in the society (Autor, 2014). c) Public education – by providing affordable education systems to the society helps to increase the skilled labor force supply and thereby minimizing the income inequality brought about by the differentials in education (Autor, 2014).
• Alternatively, doctors make more money than Uber drivers, because they have made greater investments in their education. If they would be paid the same, people would be hesitant to become doctors, because the time and money commitment are disproportionate to the rewards. Even though there is an economic argument for inequality, it is not ideal from a social standpoint. If we would let capitalism run its course without government intervention, inequality can cause severe economic, social and political problems. With rising inequality, the majority will be discontent with how little they have compared to the top 10% because income is always concentrating on the most productive part of the population.
Without proper financial systems, poor people must rely on their own limited savings to invest in their education or become entrepreneurs.So poverty can be reduced only when there is a proper financial system .In this way, they can increase their savings which will lead to high standard of living which in turn will reduce the poverty of people. 2. Financial Stability “Greater financial inclusion presents opportunities to enhance financial stability” In India most of the people follow prior savings theory developed by Keynes. Evidence