Question

Suggest some solutions to the problem of poverty – and discuss how poverty is related (or not) to the kind of inequitable income distribution we face here in the United States. How do you see change coming about?

Answer 1

Now a days there is a general concern that economic growth has not benefited people fairly or its not been fairly shared. This has given rise to the problem of poverty & widened the gap between rich and poor. In US the gap between rich and poor is bigger than in any other advanced country, but most people are unaware of it. But now a day’s most of the Americans are concerned about wealth and income inequality in our country. Inequality in America is growing, even at the top. The nation’s highest 0.1 percent of income-earners have, over recent decades, seen their incomes rise much faster than the rest of the top 1 percent. I will recommend following ways to reduce poverty & inequality.

1) Increasing the supply of basic goods: (Food & other goods): We should increase the supply of agriculture products to reduce food shortage in the economy. It can be done by boosting yield through modern technologies & adopting new irrigation & farming methods. Improving the road & transportation infrastructure helps solve the problem of timely delivery of goods from one place to other.

2) Providing Education & health care: Spending on public services such as education, healthcare & social protection should be increased. Investment in public services & education is an effective way to reduce poverty & inequality. Government should allot a proportionate amount in budget for these services. Enrolling children in school & vaccinations should be encouraged for greater level of participation. Supporting sectoral training, apprenticeships, and earn-while-you-learn programs will reduce the inequality in a society.

3) Controlling overpopulation: Overpopulation leads to scarcity of resources for fulfilling needs. By providing better education to both male & females it can reduce population by family planning. Also they can earn money & strengthen their financial conditions.

4) Preventing wealth concentration: This is one of the major reason which creates poverty & income inequality in an economy. Concentration of resources in the hands of few depresses economic activity and makes life harder for poor people. Government should improve economic policy by governing authorities to facilitate a more equitable distribution of the nation's wealth.

5) Increasing wages & decreasing taxes: Raising the minimum wages for lower income group will help in reducing poverty & inequality in wealth distribution. At the same time reducing tax rates for lower income group & reducing tax deductions for wealthy may result in reducing poverty level & inequality.