Eco102 - Domestic Wealth Gap - Rich and Poor

Shadman Ahmed

David Glowacki

ECO 102

March 7th, 2017

Domestic Wealth Gap - Rich and Poor

There have been reforms created to eliminate domestic poverty, but it has not yet been managed or solved completely. Instead, poverty has grown to a level that it is difficult to be controlled in the society.  Domestic poverty has increased because of problems such as immigration, education differences as well as Katrina’s devastation. Poverty increases the gap between the rich individuals in the society and the poor individuals. The rich ones belong to a different social class referred to as the royal class. The poor belongs to the lower class. Several political parties have risen and have made poverty their priority. For instance, the democratic congress makes poverty their main issue. This indicates the existence of the wealth gap that exists between the rich and the poor in the society.

The research shows that domestic poverty poses a threat to the next generations. The income received by a particular family can be used to determine the child’s cognitive development and the possibility of the child to study. It can cause a social and a behaviour change as well as determining the state of health of the next generation. For instance, without enough money to finance and pay for a child medical, it can result to poor health condition.

         Domestic poverty causes crime and violence. There is a likelihood that people especially the youth get involved in crime because of poverty. Young people who are living in a poor family are more likely to get involved in violence because they would need to acquire finance in order to get food and clothing to enhance their daily survival. Domestic poverty also increases social spending by foundations. For example, the spending costs are high for the purpose of avoiding the effects of poverty.

Poverty negatively affects the nation’s economy.  Through poverty, rulers have not been able to manage the economy of the country. Poverty in the country shows that there is a high rate of unemployment among the citizens of the country. Issuing of grants and subsidies by the government to the poor people in the society will in turn result to an economic failure. Furthermore; poor living conditions, ignorance due to lack of education and poor health all poses a threat to the economy. A high poverty level causes economic collapse.

The government should create jobs by investing in human capital. The government needs to invest through increasing access to a better and affordable early education to its people. They also need to subsidize its programs. For instance; the government can offer free tuition to all students at colleges and universities. This will ensure that most youths in the country can access education in the nation. This helps to eliminate poverty because the learners are equipped with technical skills that are important. The technical skills can be used as source of income because they can earn by getting employed.