How does economic growth impact poverty?

Question

Ok so it looks like alot of people are pulling stuff out of their...buttox...I need real answers from people who know what they're talking about.

Answer 1

It makes it worse due to the rising prices.

Answer 2

For starters, economic growth can have a positive impact, reducing poverty, or a negative impact, creating more poverty. Growth does not necessarily imply an improvement in social welfare, it all depends on the structure of economic forces, so this matter, which is economic, has a social and political ground, due to human actions such as bargaining and negotiation; a great reading in this regard is Hobbes' Leviathan. There is a certain distribution of productive capacities all over the society, and only those who can market their working energy and/or finished goods are granted to have a slice of the economic cake, but those who are not deemed as productive agents before the dynamics of the production system will be kept outside of any profits or welfare distribution whatsoever.

As I say, you cannot a priori know if growth will be good or bad for poor people. This may sound quite counter-intuitive, so that in case you may have any doubt that growth can be a bad thing, it may be advisable for you to read about the concept of dutch disease: http://en.wikipedia.org/wiki/Dutch_disease

Answer 3

This could swing either way. Most people however, believe that growth IS beneficial to a society and reduces the burden of poverty. With growth comes more jobs, but hopefully these jobs pay a living wage and hopefully people in poverty find a way to get enough skill to take even a low skilled position. Thru growth the economic base expands which the government will tax and this money can be used to ??? If it is used to educate the poor then great! Getting a job and developing skills is the recipe for getting out of poverty. A strong healthy economy is more likely to foster solid family units, and then economic stress is less likely to break a family apart. Women getting divorced is a big issue with poverty entry. I personally don't worry as much about how many adult live in poverty, I worry about how many children live in poverty. These are the true victims. Who is teaching them skills? who is feeding them the nutritious meals they need to grow up healthy? Who is developing their character and instilling the importance of hard work, etc.? Get my point!

Answer 4

The economic evidence is pretty clear. Economic growth raises both the average income of countries and lowers poverty.

Look at China and India as good examples. In those countries, average incomes have risen sharply in recent years, as incomes have been growing at 10 percent per year. In just 20 or 30 years, extreme poverty has been almost entirely eliminated in China, and poverty will be eliminated in 10 years or say in India if it continues to grow at current rates.

As an unfortunate example look at most African countries. There average income today is about where it was in 1960! And, poverty rates have actually been increasing since 1960.

For more information, see the analysis provided by the World Bank at www.worldbank.org.

Answer 5

Economic growth can come from new demand, increased demand, decreased supply or new supply. Economic growth from new and increased demand, or supply of a new product will impact poverty if people have access to the new jobs related to those business developments. Decreased supply looks like economic growth, but like restricting supply of oil creates spurts in the market, it's not growth it's about increasing the price, hence it increases poverty. Job creation has the greatest impact on reducing poverty.

Answer 6

It doesn't.

Poverty is affected only by internal decisions of the "victims."

Whenever a soul has become disgusted with not enough...it aspires toward the light, ignoring the lies, boundaries and ridicule...and get's its own.

Like a blade of grass seeking light, no poor person need any more motivation than to observe poverty AND wealth...and then the choice is made:

Be a thief or a producer.

It's that simple.

Answer 7

There may be unfavourable aspects to boost, reckoning on what further approximately that boost. case in point if that's been further on by making use of man made government measures that's in all probability to offer the wanted consequence (boost) interior the quick run, yet after a 12 months or so opposite its course and on occasion convey approximately the alternative consequence.

Answer 8

positive cuz more jobs are created