Effects of Poverty in Our World

All over the world, disparities between the rich and poor, even in the wealthiest of nations is rising sharply. Fewer people are becoming increasingly “successful” and wealthy while a disproportionately larger population is also becoming even poorer. There are many issues involved when looking at poverty. It is not simply enough (or correct) to say that the poor are poor due to their own (or their government’s) bad governance and management. In fact, you could quite easily conclude that the poor are poor because the rich are rich and have the power to enforce trade agreements, which favor their interests more than the proper nations. This is a very serious problem in our society today. Poverty is everywhere and it needs to reduced so that our economy will be more stabilized and balanced that it has been.

What does it mean to be poor? What does it mean to describe a nation as “developing”? A lack of material wealth does not define one as deprived. A strong economy in a developed nation does not mean much when a significant percentage or a majority of the population is struggling to survive. Development usually implies an improvement in living standards such that a person has enough food, water, and clothing, a stable social environment, freedom, and basic rights to have a fair chance for a decent life. Is this actually progress? On the other hand, are we fooled into believing that it is?

The U.S. Department of Health and Human Services placed the poverty level for a family of four at $16,450 in 1998, and the poverty rate in 1996, according to the HHS, was 13.7 percent, or 36.5 million Americans. (Egendorf: 1999, 12). Is there really a way to measure poverty, and to decide exactly what poverty is? Hunger, income level, housing and the economy’s condition of the working poor are just a few example of what needs to be considered when measuring the poverty levels in our nation. Poverty expands and contracts and its definition changes in accordance with temporary exigencies, including the interests of those who propound the definitions do the counting, which means that there is no concrete definition of poverty, except for the numbers. (Valentine: 1968, 13).

Poverty is not something that has just recently become an issue; it has been around for many years. The economy has been a major influence on the levels of poverty in our nation. In 1973, poverty increased because then the economy worsened. Real wages and productivity decreased, and the economy could not grow fast enough to absorb the large number of potential workers, which caused unemployment to increase (Katz: 1989, 154). Ever since then our government has tried to reduce the poverty in our nation, and so far has had a hard time. In 1996, Bill Clinton addressed the welfare bill, and that resulted in an estimated one million children being thrown into poverty (Egendorf: 1999, 19). However, assistance from the Government has also been helpful. Programs such as Social Security, Food stamps, housing assistance are safety nets that has helped lower the

high risk of poverty. Without these added benefits, people would be a lot worse than they are now. The safety net programs reduced the child poverty rate from 24% before the benefits were counted down to 16% (Egendorf: 1999, 19). Supplemental Security income, local general assistance, and earned income tax credits have also been popular components of income in the United States (Lynn, McGeary: 1990, 235).

Education levels are not as high in urban areas, which means that the people who are living in these areas are not qualified for the high paying jobs. High skilled jobs are beyond the reach of those who live in areas of concentrated poverty, and those who are going for the high skilled jobs, are finding their way out of these areas of concentrated poverty. Higher standard of living also attracts immigrants, which makes it hard for people living in urban areas to find good paying jobs, because the immigrants will work for lower wages.

What about the myth that America is the land of opportunity? With such a high standard of living, many believe this is not true (Shein: 1998, 13). Those who work hard and have the opportunity to be financially successful are rewarded with healthy, enjoyable lifestyles, while those who are disadvantaged and cannot receive these opportunities are punished and miserable. Disadvantaged does not mean those who are on welfare, or those who are too lazy to find work. People who have disabilities that make it hard for them to find jobs, and those that are born into poverty, who cannot escape it, must be tortured and remain helpless until a solution to this social problem is reached. In America, only 1% of the people own 50% of the wealth, 20 % of our children live in poverty, and a half a million people are homeless (Shein: 1998, 13). It is statistics like this that says our economic