Poverty Cycle

A. Poor Education

Most poor families live by hand to mouth existence. They have very meager resources to the point that they intentionally take their children out from school in order for them to work. Their view of the future is rather in a short-term fashion and they prioritize survival more than education. This causes in regression their society and poverty gets starts from square one.

These factors account for their poor management talents, thus giving the workforce with unskilled labor. This in turn gives rise to low productivity and therefore no progress is made. The poor remain to be poor.

B. Poor Health

Poor families often have little or no allowance for good health within their constrained budgets. Since they lack basic healthcare, they tend to be sickly and malnourished. Their motivation to work deteriorates and their drive for a better life diminishes in the process. The unemployed mounts up, leads to low productivity and the poor are back again where they started.

C. High Population

Poor people view the attainment of success in a different light. For them, their salvation from poverty is by having as many children as they could. They believe that children are the capital for their progress. Unfortunately, this "responsibility" is passed on early to children who end up working young with no educational opportunities and are often end up underemployed. This twisted view to progress gives way to high population within the country. With too many people to manage, the resources get even scarcer and this makes economics a very tough matter to address.

The workforce increases with unskilled workers (high labor supply), but the demand for such is limited. This causes cheap labor, and makes the common laborer susceptible to retrenchment during crises.

D. Low Savings

Poor families don’t have immediate access to the basic needs because of low income. Since their savings and expenditures ratio is roughly 1:1, their savings are virtually nil because the costs of basic needs are quite astronomical for their standards. The root of the problem comes from low investment in the country.