POVERTY AND INCOME INEQUALITY 2

Poverty and Income Inequality

Poverty and income inequality remain to be among the biggest problems confronting the
world today. The two are human rights problems that need to be addressed through deliberate
efforts from governments and government agencies. People who live in poverty are unable to
access certain fundamental human rights. They lack sufficient housing, food, water, and
education. Poverty also results in discrimination and unequal treatment in society. Although
many countries, including the United States, have experienced periods of economic growth, the
benefits of economic growth have not been shared in a fair manner. The gap between the rich
and the poor has continued to become wide. It is important to analyze the causes of poverty and
income inequality in order to propose viable solutions to the problems that confront millions of
people. The government can address the problem of poverty and income inequality through
policies geared towards reducing unemployment levels, reducing political instability, and
ensuring equitable access to resources.
Annotated Bibliography
López Del Amo González, M. P., Benítez, V., & Martín-Martín, J. J. (2018). Long term
unemployment, income, poverty, and public social expenditure, and their relationship
with self-perceived health in Spain (2007-2011). BMC Public Health, 18(1), 133.
https://doi-org.proxy-library.ashford.edu/10.1186/s12889-017-5004-2
The article analyzes the impact of unemployment and public expenditure on poverty. The
article is peer-reviewed, and this means that it offers credible insights that can be used in
research. Many countries have been battling the problem of unemployment. Population
growth has meant that unemployment levels have skyrocketed over the years. The

POVERTY AND INCOME INEQUALITY 3
number of people is high compared to the number of available jobs. People who are
unemployed in the long run suffer from the effects of poverty. Long run unemployment
has also continued to increase income inequality. People who are unemployed do not
earn, and this means that the gap between the rich and the poor widens as more and more
people become unemployed. Poverty also results in various adverse effects. People born
in poor households are less likely to have access to quality healthcare. Poor households
also fail to get quality education, which makes poverty and income inequality a vicious
cycle. The article is useful in the research since it shows how the government can break
the cycle of poverty and income inequality. The government can ensure universal access
to quality healthcare and education in so doing the government can break the cycle of
poverty and reduce the impact of income inequality.
Sehrawat, M., & Giri, A. K. (2018). The Impact of Financial Development, Economic Growth,
Income Inequality on Poverty: Evidence from India. Empirical Economics, 55(4),
1585–1602.
The journal article explores how financial development and economic growth affect
poverty and income inequality. The author is accomplished in the field of economics and
raises valuable insights concerning the topic of poverty and income inequality. The
author carries out an in-depth analysis of India and tries to form a valid conclusion
concerning the impact that economic growth and financial development have had on the
poverty levels in India. The analysis focusses on the period between the years 1970 and

2015. The article concludes that there is a relationship between financial development,
      economic growth, and poverty levels. As a country experiences periods of economic
      growth, the level of poverty reduces drastically. On the other hand, if a country

POVERTY AND INCOME INEQUALITY 4
experiences periods of inflation, the level of poverty goes up. The impact of income
inequality is felt most when there is a period of continued inflation. The poor are unable
to access goods and services when there are high levels of inflation. The article is useful
since it shows how the government can encourage economic growth and reduce inflation
to tackle the problems of poverty and income inequality. In addition, the article provides
research with empirical data drawn from India.
Seker, S. D., & Dayioglu, M. (2016). The Effect of the Global Financial Crisis on Household
Income, Inequality and Poverty in Turkey. Middle East Technical University Studies in
Development, 43(1), 361–390. https://doi-org.proxy-
library.ashford.edu/http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/issue/arch
ive
Any global financial crisis has an impact on every country’s economy. The implication is
that governments from different parts of the world have to work to ensure that the effects
of the global financial crisis do not result in unsustainable levels of poverty. Poverty
eradication should be carried out by ensuring that different governments and government
agencies cooperate. The article compares data before the Global Financial Crisis and the
data obtained in the years that came after the crisis. The data shows that the financial
crisis hit hard and resulted in many people being condemned to poverty. As governments
were working to repair their individual economies, citizens continued to suffer from the
effects of the financial crisis. The article highlights the importance of cooperation
between states in addressing the issue of poverty and income inequality. Combatting
poverty cannot be done if the states do not cooperate. Cooperation between states yields

POVERTY AND INCOME INEQUALITY 5
various advantages. The article is useful in examining the impact of poverty and income
inequality from a broader global perspective.
Shehzadi, I., Siddique, H. M. A., & Majeed, M. T. (2019). Impact of Political Instability on
Economic Growth, Poverty and Income Inequality. Pakistan Business Review, 20(4),
825–839. https://doi-org.proxy-library.ashford.edu/https://pbr.iobm.edu.pk/archives/
The journal article outlines the impact that political instability has on poverty and income
inequality levels in a country. The article is peer-reviewed and thus making it a credible
source of information. In the economics world, economists often fail to agree on how
political instability can be measured. Political instability can, however, be classified into
two categories, namely formal political stability and informal political stability. Informal
political instability includes riots, strikes, and violations. Formal political instability
originates from institutional practices as well as the changes in governments. The two
forms of political instability compound the problems of poverty and income inequality.
The government has a unique role to play in ensuring that the political climate in a
country is favorable. In so doing, the government can ensure that it reduces the level of
poverty and income inequality. The article will be useful in evaluating the role that the
government has to play in regards to controlling political instability.
Thompson, M. N., & Dahling, J. J. (2019). Employment and poverty: Why work matters in
understanding poverty. American Psychologist, 74(6), 673–684. https://doi-org.proxy-
library.ashford.edu/10.1037/amp0000468
The problem of poverty and income inequality is a complicated topic that requires input
from different disciplines. The authors of the article examine the role that psychologists

POVERTY AND INCOME INEQUALITY 6
can play in reducing the impact of poverty and income inequality. In periods of economic
recessions, many people lose their jobs. Companies aim to reduce costs and maximize
revenue in an attempt to survive in the market. Unemployment affects people
psychologically, economically, and emotionally. Unemployment results in poverty, as
people have no means of survival. It becomes challenging to acquire a new job and get
reemployed. Employment bias and gaps in unemployment law mean that people can
remain unemployed for long periods of time. Psychologists have a unique role to play in
society. The article is useful to the research since it outlines what psychologists can do to
inform public policies geared towards the reduction of poverty. The government also
needs to examine the negative psychological effects of unemployment. Unlike other
sources, the source examines the problem of poverty from a broader psychological lens.

POVERTY AND INCOME INEQUALITY 7

References

López Del Amo González, M. P., Benítez, V., & Martín-Martín, J. J. (2018). Long term
unemployment, income, poverty, and public social expenditure, and their relationship
with self-perceived health in Spain (2007-2011). BMC Public Health, 18(1), 133.
https://doi-org.proxy-library.ashford.edu/10.1186/s12889-017-5004-2
Sehrawat, M., & Giri, A. K. (2018). The Impact of Financial Development, Economic Growth,
Income Inequality on Poverty: Evidence from India. Empirical Economics, 55(4),
1585–1602.
Seker, S. D., & Dayioglu, M. (2016). The Effect of the Global Financial Crisis on Household
Income, Inequality and Poverty in Turkey. Middle East Technical University Studies in
Development, 43(1), 361–390. https://doi-org.proxy-
library.ashford.edu/http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/issue/arch
ive
Shehzadi, I., Siddique, H. M. A., & Majeed, M. T. (2019). Impact of Political Instability on
Economic Growth, Poverty and Income Inequality. Pakistan Business Review, 20(4),
825–839. https://doi-org.proxy-library.ashford.edu/https://pbr.iobm.edu.pk/archives/
Thompson, M. N., & Dahling, J. J. (2019). Employment and poverty: Why work matters in
understanding poverty. American Psychologist, 74(6), 673–684. https://doi-org.proxy-
library.ashford.edu/10.1037/amp0000468