Question

What can I write assignment for Growth and Poverty?

Answer 1

Growth and poverty are the two important terms in economics. Poverty is a situation, when a person is not able to fulfill the basic necessities of life. Poverty, the state of one who lacks a usual or socially acceptable amount of money or material possessions. Poverty is said to exist when people lack the means to satisfy their basic needs. Poverty is absolute and relative. The poverty leads to number of problems like crime, theft, unemployment, lack of education and so on. The person lacks the money to meet the basic necessities of life. The poor people are hard hit. We know that , nowadays a pandemic COVID-19 is also hitting hard the poor people. The world bank has given the income level to declare person as a poor. The income level is $1.90 a day. Any person below this line is termed as poor.

Growth is another important economic concept. Growth measures how the econnomy is growing. Economic growth is an increase in the the production of economic goods and services, compared from one period of time to another. It can be measured in nominal or real (adjusted for inflation) terms.

Poverty is a hindrance in the way of growth. More the poor people in the econnomy more is the pressure on the government. The government is always striving to reduce the poverty ratio in the econnomy. The Relationship Between Poverty and Economic Growth Revisited. It has been shown in prior research that increased economic growth reduces poverty. We know that Economic growth reduces poverty because growth has little impact on income inequality. In the data set income inequality rises on average less than 1.0 percent a year. Since income distributions are relatively stable over time, economic growth tends to raise incomes for all members of society, including the poor.

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