Effect of Income-Earning on the Poverty level of individuals
Introduction
In the world of today, millions of people live in an extreme point of poverty, which is outlined by the World Bank as vivacious on less than a dollar each day. In the past years like 2001, almost half of the developing countries lived on two dollars each day. We are sure to accept that in the world today poverty rates are much lower than it was twenty years ago. In the past decades, the percentage rate of poverty in the developing countries has been dramatically reduced by half compared to today. While poverty rates were descending, developing countries have become increasingly incorporated into the world’s new trading systems. Poor or underdeveloped nations have emasculated protective tariffs and increased their rate of participation in world trade. If the share of exports in the gross domestic product (GDP) are put in concern as a measure of globalization, then we consider developing countries to be more globalized as compared to high-income countries. This research paper will, therefore, put more concern on how poverty is caused and how it can be eradicated.
Statement of Problem
Since we know that poverty has the significant effect on the people and the world we live today, it is very crucial to do thorough research about it, its causes and how it has affected the world we live in today. In this research, I will find what the quickest and essential ways to eradicate poverty putting aside what we must not do to give birth to its diminish are.
The significance of the research
This research will is going to put forward essential recommendations on how to solve poverty and give reasons why they are necessary to implement them by showing how much we have to end it listing some of its causes we are not aware of. It will also give ways on how to go about solving this mysterious disease that has rendered almost everyone different based on the analysis of data. It is also going to going to form loopholes for future studies.
Definition of Importance Terms
Minimum wage
This is the lowest fee paid or permitted to be paid to an individual or we may say that it is the wage fixed by legal authority or by contract owner as the least that may be paid either to the particular category of employed persons or the employed persons generally.
Poverty rate
The poverty rate is referred to as the ratio of the number of people in a specific age group whose total income falls below the poverty line.
Income inequality
Income is defined as what the household can dispose of in a particular year and usually consist of earnings, capital income free cash transfer and self-employment.
Tax
This is the fee charged or levied by a government on an activity, products or the income.
Methodology
This research was all based on the quantitative and qualitative methods of data collection. We obtained facts and numerical data such as dates and duration and period of occurrence to these facts.
Causes of Poverty
Corruption
Corruption just from the word seems to be of more danger. Just like other nations, it has dramatically constituted the increasing rate of poverty. This research found that in almost 50 per cent of the poverty affected countries in the world has a corrupt government. Take for instance the government chooses where and which part of its nation he should develop based on what he or she will get in return. This does not only lead to underdevelopment but also to poverty. In most of the countries in my research, you could find that there are poor roads or worn out medical centres with no medicine in it. I enquired why there were no medicines and poor developed roads the same answers were always the blames from the government which was being irresponsible. This person felt they are not loved, and some even declined the taxpaying routine. This I found as the key to poverty as the people find it much difficult to transport their farm produce mainly from the rural areas to factories thus minimising the country’s income rate (Newland, 2017).
Health/ Diseases
In almost all the countries in the world, health is usually a very outstanding issue to families. People find it difficult to take care of their loved ones due to their poor financial state. Like we may consider someone may be affected with a disease that will cost them almost all their family earnings rendering them poor. This is a situation that not only experienced by the families but also the government. Take for instance the outbreak of a disease which requires the full attention of the country. We are certain for much expenditure the nation will incur thus causing poverty. In this research, we find that more than half of the world’s population suffer from a disease that consumes their energy causing death. Rather than treatment, lack of the countries physical power to produce excellent products will render it unstable as some workers may quit their jobs due to the illness. The nation thus with the reduced production will become poor (Ceballos, et al., 2018).
Lack of control on natural resources
Some countries lack the full power of the local resources thus making them more susceptible to poverty since resources of much worth are exploited and some exported to countries that are much rich with them getting less benefit from these resources. A nation may lead for example in the production and exportation of minerals or other physical products but with the excess demand sell them at a cheaper cost which is like wasting them. This may include the government’s ego to enquire more without care of what they are taking away. Apart from that, there might be some local people producing products in a country without their government’s conscience thus wasting their nations resource unknowingly or aware but wasting the resources due to some of their unfulfilled needs. With this in the country, the funds become less and much less and every day is subjecting the country to deep poverty without the government’s awareness.
Overpopulation in a state
High population pressure in the country may also be the course of poverty in a nation since the resources the nation may be in a position to produce sometimes becomes only enough for specific individuals. With the pressure in the government to deliver what it is not in a state to give out subjects it into poverty as it is not able to give or provide for everyone. The Insufficiency of the country’s resources can make a nation unable to provide for everyone thus making it subject the people into high wages and increased rates and prices not considering the low-class individual that also face the high charges. This will make the unbefitting kinds to be in a state where they cannot afford food and medical attention when needs arise hence putting them in the mediocre category. Since they are also part of this country, the country is considered inferior as well. Thus the population no matter how much the state can produce, once it cannot be that enough to sustain all the people it is a risk to poverty (Khemili, et al., 2018).
Gender and age discrimination
Discrimination is also the number one factor that leads to poverty in the world. Marital instability and gender discrimination are some of the primary sources of poverty among women and children. Research finds that wealthy people in the world are old men or just some that are next to being old. Women are thus the unlucky ones since in almost all over the world huge businesses are taken care of and mostly run by men. They often put lame excuses that sometimes the women cannot increase the income of a business. In the research, we find that someone is less expected to leave his company in the hands of a woman than they are willing to give them and let them run by a man. We are not only putting men into blame, but in every five cases, we found there is a woman not able to employ men in their company which may also be the number one issue to why they are not much rich in their firm. They are significant factors in keeping many women and children in many countries around the world in poverty.
National debt
A country may be in a lot of obligations which often induces the World Bank and the International Monetary Fund which require a developing country to open new markets for products. For instance, once a state has borrowed money no matter what, and how hard they try to work for incomes they are considered to have done less work as what they have, a particular amount does not belong to them. If the country feels that it owes too much to the World Bank, it may be pushed it fake decisions like printing more money to clear its debts which in turn reduces the monetary value thus how miserable they will start to become. It is usually to more advisable to keep what you have and feel satisfied with it because ones an individual has gone into borrowing, he or she may sometimes feel like they like they always have other people not knowing they are becoming more and more impoverished. Poverty circle will always start at the moment when you feel like you should be borrowing from others to accomplish your goal.
Vulnerability to natural disasters
Some of the physical may include drought, too much rainfall and flooding in plain areas are some of the primary causes of poverty by weather. They may be natural as some may think but when they strike you may wish they never occur or had ways to control them which may be more available but due to reluctance they cause much damage that is beyond repair. Governments that may sometimes be relied on often interested in devoting resources to other developing capital cities rather than being involved in expanding infrastructure in more rural and provincial regions. The research found that often, the government is interested in building new firms in the urban cities rather than building institutions may help in the rural when danger strike since these are the where the natural resources for the industries originate. When these natural disasters strike, the undeveloped areas take longer to rebuild thus causing social progress is delayed. Rather than hindering progress in the rural flooding also occur in the cities sweeping wealth with it to the ocean and lakes. In the research carried out we found that rain and flooding have endangered lives and has taken much with it in some of the developed countries thus causing poverty (Vera, et al., 2016).
Recommendations on how to solve poverty
Increasing the minimum wage
If the government may think of increasing the minimum wage, people will have improved well-being. The research found that since 2007 the United States government didn’t raise the federal minimum wage until 2015. Due to this an employee who even earns the minimum wage but has two or more children will still be living in poverty. Some of the government officials may also think that if they put more pressure and increase the taxes will improve the country’s economy, but it only creates frustration to the people who may be unable to meet the standards that the government require thus making them miserable. Some of the employees will feel that they are not well paid they will have to look for better jobs in foreign countries thus leading to the reduction in the countries physical ability to produce to its required standard thus causing poverty to its nation.
Clean water and sanitation
Having clean water and sanitation reduces poverty in many ways. On the first hand, it preserved time and minimised time loss leads to high productivity. Take for instance someone travels a kilometre to go and fetch water for his or her products or take for example the livestock on the farm that may require full attention. We may take it as having good exercise but when the person gets tired the unfinished plants or sheep will go thirsty and thus have poor yield therefore poor income hence leading to loopholes to poverty. Having clean water around will not only motivate the crops and livestock but will also give more working, and good agricultural produce will be felt. Increase in agricultural production will, therefore, reduce the cost of goods services which in return lowers the rate of poverty in the country as a lot of income is felt.
Granting the access to loans by the poor
The poor may be considered to be very poor to pay off their debts but when they are subjected to small loans with a longer duration of payments with fewer interests we are firmly sure that their lives in going to improve. This research found that less than 10 per cent of the world’s population has access to financial services. Through micro-financing, the poor or low-income earners and the unemployed can get small loans to improve their lives and living standards. Take for example a farmer wants to purchase a cow but has less finance but is sure to get much interest from his or her farm with the cow. If such a person is offered loan for some duration, he or she will be able to pay back and will as well get profits from the same cow. This method will not only improve the standards of living but will also increase the interest rates for the government.
Clean and good new health care services
As we all know that without the physical energy in the country, no matter how hard it will try to exhaust its resources nothing will come with benefits and interests. The research found out that as the farms run out of the workers, the number of patients in the hospitals increases each day. It is therefore much significant if the government improved and built more medical centres. It is found that countries that had a higher rate of development had good medical centres and facilities which saw the importance of human being and their lives. This also reduces the amount of transport a patient has to use to get the full medical attention they require. It does save not only time but also the standards of living. An employee will feel safe with medical care around them hence getting this sadden motivation therefore high performance which leads to sound production.
Saying no to corruption
Corruption is one of the significant things we have to fight and stop it at all cost as it is the leading cause of poverty in the world today and in the next coming years if it does not end then we rest assured to contain poverty for that long. The higher the rate of corruption the slower the pace of development a country will experience as compared to other countries with less crime and eventually we will find that economic activities will decline. Even though corruption as a factor does not directly contribute to poverty, but its effects on the economy and the governing factors seriously contribute to poverty. Since bribery creates high cost in business, limits the growth of an economy, leads to increased inefficiency, and builds public mistrust in government, it is, therefore, everyone’s job to eradicate and say the big NO to corruption and its contributing factors. A person has to take full control of their greed, pay total taxes and take responsibility for their income. It is this taxes that can be used to build schools, improve social services and health facilities. This is the most effective way we can use and be sure to minimise the rate of poverty (Carbo, et al., 2018).
Conclusion
The inconclusive statement, poverty is caused by factors that require our responsibility, once we stand to realise what we should we are rest assured to have less and much less poverty rate in the next generation. We have to make sure that our children in the next generation live in proper living standards and not suffer from the mistakes that don’t even know where they when and where they were committed because they do not deserve it. They should expect and wait for a bright and happy life which is full of hopes and dreams in their future growth. Rather than that, some countries depend on us and when we improve our standards so do they and will appreciate which leads to good income of the nation and the world as a whole.
References
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Ceballos, Adams, Jorge David Dresdner-Cid, and Miguel Ángel Quiroga-Suazo. “Does the location of salmon farms contribute to the reduction of poverty in remote coastal areas? An impact assessment using a Chilean case study.” Food Policy 75.C (2018): 68-79.
Khemili, Hasna, and Mounir Belloumi. “Cointegration Relationship between Growth, Inequality and Poverty In Tunisia.” International Journal of Applied Economics, Finance and Accounting 2.1 (2018): 8-18.
Vera, Yaksic, and Nelson Fabian. “Crime prevention through environmental design.” (2016).
Carbo, J. A., Dao, V. D., Haase, S. J., Hargrove, B. M., & Langella, I. M. (2018). Social
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