Good morning/good afternoon everyone. Today I am gonna talk about one of the most common topic but hard to be eradicated, the poverty in global aspect.
What are the things that pops up in your mind when you heard the word poverty? Is it the lack of money? Lack of supply? Lack of income? Lack of food for daily basis?
Well, that is exactly connected to the word "POVERTY".
Poverty is about not having enough money to meet the daily basic needs including food, clothing and shelter.
However, poverty is more, much more than just not having enough money. Poverty can affect to the development of the economy, or the economical growth of a country. The health might be at risk too, if the rate of poverty wouldn't grow any lower. If the percentage of this won't go any lower, everyone alive, the current and the future generations, may even sink in on poverty more.
How does poverty affect economical growth? When people are poor, they need their income for subsistence. Due to this, they are unable to invest in human capital, physical capital, and their own health. As a result, investments in the economy are reduced, resulting in a less productive workforce.
Take note that a less productive workforce and lack of investments in the economy can cause for businesses to shutdown, and the employees of this businesses will end up unemployed.
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