Question

What is important/relevant about the poverty.

Give fives arguments and explain!

Answer 1

answer :

Poverty is a situation when a person cannot afford his basic needs; food, shelter and clothing etc. poverty is an important topic of economics because if affects the development of our economy.

Important facts about poverty:

1. Poverty is directly related to employment: poverty and employment has direct relation. if there is high unemployment in the economy that means there is high poverty because an unemployed person don’t get income so either he will be dependent on his family or deprive from the basic necessities.    
2. Poverty reduces consumption expenditure: consumption expenditure of poor people is low due to their low or lack of income. They don’t have enough money to spend.     
3. Poverty reduces standard of living of people: because a poor person has low consumption expenditure he can’t afford a decent living of standard.
4. Poverty reduces economic development: poverty affects economic development of a country because poverty leads to low consumption spending, low level of education etc. which negatively affects our economy. It also increases crimes ; theft, loots, etc. because to fulfill his basic needs people can go to any extent either its right way or wrong.
5. Increase in education level and employment will reduce poverty: if people will be educated than they can get employment which will give them income to fulfill their needs.