Why Do Poverty Exist In The First Place?

Poverty is lack of the means necessary to meet your basic needs such as food, shelter and clothing. Economically, a person is deemed poor, or is said to be in poverty, if he or she is living under the poverty line. The poverty line is a mark of the accepted level of income that is just right to meet one’s basic needs. Unfortunately, a lot of people live under the poverty line in the world. In 2013, the accepted poverty line was $1.90 per head and it was discovered that 767 million people lived on less than a dollar a day worldwide.

shutterstock_326168300Why does poverty exist in the first place?

Did you know that almost half of the world’s population live on under $2.50 a day? That is the extent of poverty in this world for those who would dare take it as a light issue. Why does poverty exist in the first place? Well, poverty exists due to a combination couple of different reasons. The first reason is definitely political instability. Peace is key to economic growth and any disruptors of peace causes instabilities that inconvenience trade. Investors tend to shy off from investing in war torn zones. Secondly, natural disasters such as floods are initial causes of poverty. They inconvenience day to day trade in a country.schoolapply.ng

Why does poverty exist in the first place?

The third initial causes of poverty is national debt. Countries with large national debts are prone to rising levels of poverty. It’s mostly due to negative balances of trade, over importation and collapse of indigenous industries. This leads to underdevelopment in infrastructure, education and health sector and unemployment which is in fact the leading initial cause of poverty. Fourthly, social discrimination and inequality plays a part in initial stages of poverty in such a way that people of lower social classes are barred from accessing necessary tools and resources to support their development. Lastly, illiteracy is a known causes of poverty. Educated people stand better chances of avoiding poverty.