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Why Are People Poor?

David Zheng By David Zheng on
Badge: Author | Level: 2 | Education & Learning Expertise:

What does being poor mean? Within society the term poor can be defined as lacking money or material possessions. Generally people who are poor are at rock bottom in the social hierarchy. In a world dominated by a capitalist market, people are able to decide their own occupations, their wages, and ultimately their lives so long as they are willing to take the necessary risks. However in this world where there are winners there also must be losers. With this being said there are various factors that contribute to poverty, such as overpopulation. There is simply not enough food, money, or jobs to satisfy and sustain the entire world’s population. No matter the case it is by law of nature that things are limited, that same rule applies when exhaustible resources cannot meet the demands of all people; especially when there are wealthy people who have got into the habit of having more resources than required. This important issue of overpopulation combined with capitalism will form a basic formula for poverty. “Capitalism is an economic system in which the means of production and distribution are privately or corporately owned and development is proportionate to the accumulation and reinvestment of profits gained in a free market.” Basically what this indicates is that private ownership means profit to the owner. The owner controls the means of production, so the profit belongs to the private business owner. In capitalism, the free market determines the production, distribution and price of goods and services. Then when some owners are dominant in competition there is no room or space for other people who also wish to capitalize. In America capitalisms accounts for much of the wealth of numerous individuals, but it can also be said that it causes more people to be poor than wealthy. United States has the highest poverty rate of the world's industrialize countries due mainly to capitalism and the free will that fuels it. Because of human nature and greed many of the wealthy denizens in the world want to expand and increase their wealth even more. An example of this would be a company in America that would expand overseas and acquiring workers in foreign countries who are paid a lower wage. In this way people lose jobs and the company gains more profits. Even amongst poor people there are those who do have jobs and work, but their wage is just not great enough to maintain standard social necessities.

Aside from the effects of capitalism, a big problem that contributes to poverty is the lack of education and appalling conditions people were put into either by themselves or by the actions of society. Some people were born poor with their families having little or nothing in their possession. In such cases many underprivileged people remain poor until they are able to acquire the resources or a position that will meet the standards of living such as the ability to afford for numerous things. However if there was no poverty life today would not be the same. Poverty is a necessary part of the economic and social structure. Without poverty our society would most likely break down and inflation would sky rocket.