How does poverty affect the economy of a country?

Answer 1

Condoms are the answer !!!

Answer 2

Well since the economy is based on sellers selling to consumers it goes like this. Sellers need something to sell which they need buyers to buy and since there are way more buyers than sellers the seller makes money. Now when the seller gets greedy and dosnt put the money back into circulation the buyers go broke and when the buyer goes broke he cant buy anything else which leaves all the money with the seller
EVER HEARD THE TERM THE RICH GET RICHER AND THE POOR GET POORER well thats the definition in a nut shell. I think that anyone that has over 1.5 million dollars should be made to save a certain percentage of the money in a government account (as a fall back measure) and then they should be required to spend so much a year to keep the money from stock piling in back account's and just sitting there. So lets say I hit the lotto for 300 million (lol im my dreams) I should be made to save lets say 30 million of it in the bank (as a fall back measure) and I should be required to spend 2 million a year. At that rate I would have 30 million in the bank and be able to spend the 2 million a year untill i was 135.....wait thats 153 because you have to add the 18 years it takes to get old enough to play the lotto.

Answer 3

I can't see how poverty could have much of an impact. After all the poor don't generally have jobs so they don't produce anything of value. They don't have money so they can't buy anything. The best I can determine is that they don't participate in the economy.

To be involved in the economy you have to have something to trade.

Answer 4

well if you look at the culture of poverty you see a large amount of crime, the crime in turns causes property values to lower, and prices of goods to increase, this does however also cause an increase in city budgets for civil servants, creating more jobs for law abiding citizens..so unfortunately just like in nature everything is part of a cycle, and each part is just as important as the next for a continuous existance.

Answer 5

the logical reason is with higher poverty less money is being pumped into the economy on a consumer level.

In addition more money is being spent in taxes the help welfare programs for the poor.

Answer 6

Well for Mexico it's working out pretty good, they make more money now that they are exporting their illegal citizens here, then they make selling oil. they make over 20 billion a year from the illegal aliens sending money home.

Answer 7

Not very positively.