The Significant Cause Of Poverty In The United States

The Significant Cause of Poverty Do you want the gap is between the rich people and poor people? A statistic found from Internet has shown that combined wealth of the world’s top 225 richest people was equal to the combined wealth of one trillion of poor people in 1998, which equal to the combined annual income of the world’s 2.5 billion poorest people. Now this situation is even worse, poverty mainly appeared in undeveloped countries to overpopulation and poor financial situation of the governments. The first major cause of poverty is overpopulation that is always happens in developing countries. Overpopulation means that there are too many people living in a specific area to share the limited resources; therefore, people in that area is
People in the poor countries have a low educational level and low technological level because the government doesn’t have enough money to spend on the educational and technological areas. That’s why the countries with poverty have few professional laborers, high skilled workers and knowledgeable workers; thus, they have low productivity. They are not able to produce valuable products. So they cannot get away from poverty. Last but not least, they can only work on the primary industries such as farming and mining; therefore, they can only confine their production on producing low value products or some inferior goods such as crops and minerals. As the result, they have a low GDP and remain poor. For example, India is the country that suffers from poverty because of the poor finances in government. It doesn’t have sufficient amount of money to enhance its educational and technological level; consequently, it can only produce low value product and it is not able to become wealthy. In spite of the causes of poverty are so serious, it also causes many serious and lethal effects such as famine and health