Introduction to Poverty

“Almost half the world – over 3 billion people – live on less than $2.50 a day.”

Poverty exists all over the world. Access to resources is required for survival, but not everyone can afford basic rights that others take for granted. Even in the wealthiest countries in the world, poverty can be found. I have seen examples of poverty in almost every city that I have been to. I’m sure that most people would be able to say the same thing. What factors cause these discrepancies? Can poverty be attributed solely to the individual in question? Or does the lack of wealth stem from global, political or social issues.

One way that inequality can be approached is by examining the people in poverty. If people in poverty are more concerned for today, then it is possible that the person has issues with impulsivity. Instead of maximizing reward, the person chooses the more immediate option (i.e. begging for immediate money rather than attending school in order to build a career.) People who are unable to plan for the future are unlikely to invest in something that does not have an immediate payback.

The availability of education is another factor that can influence social status. Many economists agree that education is a way to rise above poverty. In general, the higher the education you receive, the higher the paycheck you will get. Unfortunately, education is not always there for the people who need it. It costs money to maintain a school, and if the issue is poverty, there won’t be enough funding to give the poor the education they require. It begins a vicious cycle; schooling is needed for a population to earn money, but the population must somehow have money to afford the schooling.

In a sense, globalization exists to end poverty. One of the goals of globalization is to spread wealth throughout the world. However, globalization could have a negative effect on the poor. As noted by the National Bureau of Economic Research, the relationship between poverty and globalization is complex. http://www.nber.org/digest/mar07/w12347.html is a link to the web page that addresses the studies done by Anne Harrison. Harrison has observed that globalization creates winners and losers among the poor, and even though globalization helps decrease poverty, currency crises can cause devastation.

Through this blog, I hope to gain a better understanding of the underlying causes of poverty and to learn of possible steps that can be used to alleviate the crippling poverty that exists. I do not believe that there is any simple answer to eliminating poverty. Rather, I think that world equality will depend a variety of interacting factors and the combined effort of the worlds population.