Rough Draft Review Process Evaluation IntroductionPoverty and income inequality remain to be among the biggest problems confronting theworld today. The two are human rights problems that need to be addressed through deliberateefforts from governments and government agencies. People who live in poverty are unable toaccess certain fundamental human rights. They lack sufficient housing, food, water, […]
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Introduction
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.
Background
Globally, poverty and income inequality have evolved in different ways in the recent
past. The number of people that live below the poverty line has significantly reduced primarily
due to tremendous growth in emerging economies. However, there are economies in which
poverty is on the rise. Places such as the United States and Europe, there is a rising number of
poor people, especially children (Shehzadi et al., 2019). As inequality across countries decreases,
inequality within countries has been on the rise, not only in developing nations but also in
developed nations. In developed countries, the rise in poverty cases has been associated with a
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decline in wage shares of national income, deindustrialization, decreased unionization, as well as
financialization of the economy. On the other hand, emerging and developing economies have
high cases of poverty and income inequality due to unbalanced growth in different cities,
different resources in rural and urban areas, with rural areas being left behind.
Poverty and income inequality patterns mainly originate from social structures and
culture. Additionally, they are steered by changing dynamics in the financial system, such as
shifting currency values, changes in the healthcare sector, and dynamics in the labor market. The
global ap of poverty and income inequality has also been affected greatly by political shifts. The
role that the government plays in the stability of the economy and the welfare of the state has led
to changing trends in poverty and income inequality in different states (Shehzadi et al., 2019).
Consequently, the government holds the key to solving issues that lead to poverty and income
inequality. Scarce resources, which cause income inequality and intergenerational conflicts, can
be solved by those in political offices. Solutions to poverty and income inequality range from
establishing and maintaining peace through ensuring there is political stability, to transforming
social structures, and advocating for interventions that are cost-effective and opportunity-driven.
Solutions
Equitable distribution of resources helps deal with income inequality and consequent
poverty that arises from this inequality. According to Aristotle, “when men are equal, they are
contented.” Therefore, equality and equity are key in ensuring that policies contribute to
economic growth and to the well being of the people as well. Political stability ensures that there
is harmony, people are able to carry out normal economic activities, and the countries’ economy
is strong. such an environment is conducive to economic growth and consequent reduction of
poverty and income inequality. Political stability allows for growth in the Gross Domestic
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Product (GDP), and the positive effects are transferred to human capital, factor productivity, and
physical capital (Sehrawat & Giri, 2018). Political stability fosters growth and investment.
Investors, both local and foreign, invest more when there is political stability. They know that
their investment is secure. The effect of this is that employment is created; the unemployment
rate, which is associated with poverty, is reduced. Economic growth is highest when a country is
experiencing harmony and political stability. The exists a relationship between poverty and
political stability, and one can lead to another. Lower economic growth, poverty, and income
inequality increase the chances that a country will experience coups DEtat. The people tend to
become impatient with the current government and take measures to overthrow it so that a better
one can assume office, one that will help solve their problems.
Reduction in poverty and attainment of income equality have had less to do with policies
enacted with the direct aim of reducing poverty per se. however, this has been the case when
change is directed towards achieving wider social objectives. Countries that have been successful
in alleviating poverty, such as countries in East Asia, have achieved this by addressing broader
social issues. Some of these issues include ensuring full employment, nation-building, and unity
(López Del Amo González et al., 2018). These issues had far-reaching implications in the rise of
poverty rates. However, once addressed, a solution was consequently found. Therefore, it is
possible to eradicate poverty through ensuring that policies that stress on factors relating to social
wellbeing are addressed, as opposed to just concentrating on what may appear to be the
proximate causes of poverty. Besides, inequality can also be reduced through ensuring that
people are protected in seasons when they are unable to participate in any meaningful economic
activity. Some of these seasons include when one is sick, disabled, suffering from a chronic
ailment, unemployed, or in old age and in need of care. Income inequality can be reduced by
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ensuring that everyone had adequate access to basic social protection. For instance, it is time that
the wage gap was addressed. Although there is a rising number of educated women, female
workers continue to be paid lower than men in most countries (Seker & Dayioglu, 2016). Income
inequality can be solved by ensuring that such disparities are eliminated. Social protection is
important in the achievement of economic stability in a way that is positive and helps to cushion
the adverse effects of structural change.
Conclusion
Overall, it is evident that poverty and income inequality are caused by certain social and
economic structures. Elements such as political stability, unemployment, and inequitable
distribution of resources cause poverty and income inequality. Poverty can be eradicated if these
issues are addressed. Political stability can be caused by various factors, such as war. Also, it is
evident that extreme levels of poverty can also cause political instability through events such as
coups DEtat. Although the challenges that are encountered in the eradication of poverty and
income inequality are quite massive and complex, it is still achievable. Governments can achieve
this by first unpacking poverty patterns and causes of inequality in different parts of the
countries, realizing their origins, then dealing with the source. A social safety net is necessary to
ensure that every citizen is protected and their social welfare well-taken care by the government
and social structures put in place.
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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
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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
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