how can the GDP of a country increase and the level of poverty increase at the same time?

Question

how can the GDP of a country increase and the level of poverty increase at the same time?What causes that to happen?

Answer 1

Thats an easy question to answer. The wealth of the country is concentrated in fewer and fewer hands. "The rich get richer and the poor get poorer"

Answer 2

As defined by Wik - "The GDP of a country is defined as the market value of all final goods and services produced within a country in a given period of time." Any country that keeps a tight reign on the wages of it's workers does what you are stating. China is a prime example; paying it's workers next to nothing while exporting billions of dollars of goods. The U.S. does it with the minimum wage and hiring illegal aliens for even less.

Answer 3

GDP is just the total gross domestic product, and has little to do with how that product is divided, so if poverty is rising it is because the increased production has not been either: created by the poor, or has not been taken from the producers and given to the poor, or it was created by the poor and was taken from them.

Answer 4

The GDP of a country can increase when their is political stability, when the economy is diversified and agriculture output and industrial output is increased through productivity techniques and through increased levels of general and technical education and better and improved health services to common man.

Answer 5

GDP is an aggregate measurement. It measures the total production of an economy. If population grows it can increase the GDP while GDP per person decreases.

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Answer 6

Whenever has it not? To Marx, poverty was a necessary condition for capitist development:

"Pauperism forms a condition of capitalist production, and of the capitalist development of wealth. It forms part of the incidental expenses of capitalist production: but capital usually knows how to transfer these from its own shoulders and the petty bourgeoisie". - Capital c.25.

Tony Saunois summarized Marx' thought pointing out that poverty is related more to the realities of work than to the quantity of pay:

"For Marx poverty was not only a question of wage levels. It was also the increased alienation from society that capitalism brings with it. Marx explained that capitalism raises productivity by, amongst other things, "distort(ing) the worker into a fragment of a man... they transform his lifetime into working time, and drag his wife and child beneath the wheels of the juggernaught of capital... accumulation of wealth at one pole is, therefore, accumulation of misery, the torment of labour, slavery, ignorance, brutalisation and moral degradation at the opposite pole"."

http://www.socialismtoday.org/44/marx.html

Answer 7

It is called distribution of income. Federal government's role is to distribute income "equaly" to those that needed. But the system does not allow that to happened. Poor people are being accused of being lazy...Income flowss to those that have, working class gets the left-overes. There is no justice and equality in company run capitalism.

Answer 8

Wealth concentration disparity.
http://en.wikipedia.org/wiki/Wealth_condensation

Answer 9

fat pigs get bigger piece!