Anonymous asked in Social ScienceEconomics · 1 decade ago

How does poverty happen?

5 Answers

  • Anonymous
    1 decade ago
    Favorite Answer

    Because globalization is seen as an economic issue not a moral one and free markets don't work to ensure people get access to the resources they need. This has taken so long to change because the people who disproportionately influence laws and social norms have done so in their own interest.Which is to keep the status quot. Seeing wealth is a relative thing and not an absolute it part of it's mechanism.

  • outman
    Lv 4
    4 years ago

    How Does Poverty Happen

  • Anonymous
    5 years ago

    This Site Might Help You.


    How does poverty happen?

    Source(s): poverty happen:
  • 1 decade ago

    The fundamental economic reason is scarcity.

    Scarcity of resources by definition ensures that there will not be enough of any given item to be comfortably allocated to everyone in an economy.

    In a communist/socialist economy, economic equality is enforced through redistribution of wealth. While the intentions of the systems appear benevolent, they fundamentally violate private property rights of individuals who build wealth through confiscation and the central authority decides who gets what. In the end, all that is shared is poverty as the system breaks down under its own inefficiency.

    In capitalist societies, private property rights are the basis for the system. Individuals have a right to compete in the marketplace to build wealth for themselves. As they build wealth, they continue to search for new avenues to create wealth and prosperity results. Owners pay workers, workers should save to better their economic situation and eventually become owners themselves.

    In the US we straddle capitalism and socialism. The most damaging socialist programs have begun with the goal of ending poverty. A concept that is impossible when you remember that resources are finite and governments can't change that. Embracing free markets proves to be the most optimal way of reducing poverty within a society. Capitalist systems allow for the free flow of capital to efficient industries and prosperity spreads to those willing and able to work for it.

    Source(s): Capitalism & Freedom by Milton Friedman
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  • 1 decade ago

    Many reasons. It may be the country you live in has no opportunity. It could be that you have no education or skills and cannot earn enough to support yourself.

    Or it could be wrong choices,that you had a family when you had no money to support one.

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