Question

Discuss the role of poverty in economic development. In your discussion, define poverty, discuss how it is measured, discuss the human cost of poverty and discuss the vicious cycle of poverty, VCP.

Briefly discuss poverty in the United States. Include in your discussion the short-run and long-run poverty alleviation policies in the United States.

Answer 1

POVERTY

Poverty is said to exist when people lack the means to satisfy their basic needs. In this context,the identification of poor people first requires a determination of what constitutes basic needs.

MEASUREMENT OF POVERTY

Absolute measurements of poverty,used by world bank and delevloping countries like India,Afganistan,bangladesh rely on poverty line which remains constant accross geographies and over time

HUMAN COST OF POVERTY

The human exsists when people live under low standards. In this situation ,people generally dont have adequate access to basic human needs . The reason for the majority of people to live under such circumstances is the place they've raised in,as that affects their access to basic needs as well as safety,education and job opportunities

VCP

vicious circle of poverty means poverty begets poverty. it is a concept that illustratres how poverty cause poverty unless an external intervention is applied to break the cycle.

ECONOMIC DEVELOPMENT AND POVERTY

Poverty hinders in growth of country .Economic development is the only solution to curb poverty .The more a given amount of growth raises the returns to the factors that are more important sources of income for poor than the non poor,the more it reduce poverty and inequality.

POVERTY IN US

Poverty in united states refers to people who lack sufficient income or material possessions for their needs.

POLICIES TO ALLEVIATE POVERTY

1Short term :

i) Means tested welfare benefits

ii) Minimum wages

iii).Free market policies to promote economic growth

iv).Direct provision of goods/Services

2.Long term:

i)Sustained economic growth

ii)Reduce unemployment

iii)Progressive taxes

iv)Increasing benefits to the poor

v)National minimum wage

vi)Universal basic income