essay from poverty

Poverty Essay for Students and Children

500+ words essay on poverty essay.

“Poverty is the worst form of violence”. – Mahatma Gandhi.

How Poverty is Measured?

For measuring poverty United nations have devised two measures of poverty – Absolute & relative poverty.  Absolute poverty is used to measure poverty in developing countries like India. Relative poverty is used to measure poverty in developed countries like the USA. In absolute poverty, a line based on the minimum level of income has been created & is called a poverty line.  If per day income of a family is below this level, then it is poor or below the poverty line. If per day income of a family is above this level, then it is non-poor or above the poverty line. In India, the new poverty line is  Rs 32 in rural areas and Rs 47 in urban areas.

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Causes of Poverty

According to the Noble prize winner South African leader, Nelson Mandela – “Poverty is not natural, it is manmade”. The above statement is true as the causes of poverty are generally man-made. There are various causes of poverty but the most important is population. Rising population is putting the burden on the resources & budget of countries. Governments are finding difficult to provide food, shelter & employment to the rising population.

The other causes are- lack of education, war, natural disaster, lack of employment, lack of infrastructure, political instability, etc. For instance- lack of employment opportunities makes a person jobless & he is not able to earn enough to fulfill the basic necessities of his family & becomes poor. Lack of education compels a person for less paying jobs & it makes him poorer. Lack of infrastructure means there are no industries, banks, etc. in a country resulting in lack of employment opportunities. Natural disasters like flood, earthquake also contribute to poverty.

In some countries, especially African countries like Somalia, a long period of civil war has made poverty widespread. This is because all the resources & money is being spent in war instead of public welfare. Countries like India, Pakistan, Bangladesh, etc. are prone to natural disasters like cyclone, etc. These disasters occur every year causing poverty to rise.

Ill Effects of Poverty

Poverty affects the life of a poor family. A poor person is not able to take proper food & nutrition &his capacity to work reduces. Reduced capacity to work further reduces his income, making him poorer. Children from poor family never get proper schooling & proper nutrition. They have to work to support their family & this destroys their childhood. Some of them may also involve in crimes like theft, murder, robbery, etc. A poor person remains uneducated & is forced to live under unhygienic conditions in slums. There are no proper sanitation & drinking water facility in slums & he falls ill often &  his health deteriorates. A poor person generally dies an early death. So, all social evils are related to poverty.

Government Schemes to Remove Poverty

The government of India also took several measures to eradicate poverty from India. Some of them are – creating employment opportunities , controlling population, etc. In India, about 60% of the population is still dependent on agriculture for its livelihood. Government has taken certain measures to promote agriculture in India. The government constructed certain dams & canals in our country to provide easy availability of water for irrigation. Government has also taken steps for the cheap availability of seeds & farming equipment to promote agriculture. Government is also promoting farming of cash crops like cotton, instead of food crops. In cities, the government is promoting industrialization to create more jobs. Government has also opened  ‘Ration shops’. Other measures include providing free & compulsory education for children up to 14 years of age, scholarship to deserving students from a poor background, providing subsidized houses to poor people, etc.

Poverty is a social evil, we can also contribute to control it. For example- we can simply donate old clothes to poor people, we can also sponsor the education of a poor child or we can utilize our free time by teaching poor students. Remember before wasting food, somebody is still sleeping hungry.

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7 Essays About Poverty: Example Essays and Prompts

Essays about poverty give valuable insight into the economic situation that we share globally. Read our guide with poverty essay examples and prompts for your paper.

In the US, the official poverty rate in 2022 was 11.5 percent, with 37.9 million people living below the poverty line. With a global pandemic, cost of living crisis, and climate change on the rise, we’ve seen poverty increase due to various factors. As many of us face adversity daily, we can look to essays about poverty from some of the world’s greatest speakers for inspiration and guidance.

There is nothing but a lack of social vision to prevent us from paying an adequate wage to every American citizen whether he be a hospital worker, laundry worker, maid or day laborer. There is nothing except shortsightedness to prevent us from guaranteeing an annual minimum—and livable—income for every American family. Martin Luther King Jr., Where Do We Go from Here: Chaos or Community?

Writing a poverty essay can be challenging due to the many factors contributing to poverty and the knock-on effects of living below the poverty line . For example, homelessness among low-income individuals stems from many different causes.

It’s important to note that poverty exists beyond the US, with many developing countries living in extreme poverty without access to essentials like clean water and housing. For help with your essays, check out our round-up of the best essay checkers .

Essays About Poverty: Top Examples

1. pensioner poverty: fear of rise over decades as uk under-40s wealth falls, 2. the surprising poverty levels across the u.s., 3. why poverty persists in america, 4. post-pandemic poverty is rising in america’s suburbs.

• 5. The Basic Facts About Children in Poverty
• 6. The State of America’s Children 
• 7. COVID-19: This is how many Americans now live below the poverty line

10 Poverty Essay Topics

1. the causes of poverty, 2. the negative effects of poverty, 3. how countries can reduce poverty rates, 4. the basic necessities and poverty, 5. how disabilities can lead to poverty, 6. how the cycle of poverty unfolds , 7. universal basic income and its relationship to poverty, 8. interview someone who has experience living in poverty, 9. the impact of the criminal justice system on poverty, 10. the different ways to create affordable housing.

There is growing concern about increasing pensioner poverty in the UK in the coming decades. Due to financial challenges like the cost of living crisis, rent increases, and the COVID-19 pandemic, under 40s have seen their finances shrink.

Osborne discusses the housing wealth gap in this article, where many under the 40s currently pay less in a pension due to rent prices. While this means they will have less pension available, they will also retire without owning a home, resulting in less personal wealth than previous generations. Osborne delves into the causes and gaps in wealth between generations in this in-depth essay.

“Those under-40s have already been identified as  facing the biggest hit from rising mortgage rates , and last week a study by the financial advice firm Hargreaves Lansdown found that almost a third of 18- to 34-year-olds had stopped or cut back on their pension contributions in order to save money.” Hilary Osborne,  The Guardian

In this 2023 essay, Jeremy Ney looks at the poverty levels across the US, stating that poverty has had the largest one-year increase in history. According to the most recent census, child poverty has more than doubled from 2021 to 2022.

Ney states that the expiration of government support and inflation has created new financial challenges for US families. With the increased cost of living and essential items like food and housing sharply increasing, more and more families have fallen below the poverty line. Throughout this essay, Ney displays statistics and data showing the wealth changes across states, ethnic groups, and households.

“Poverty in America reflects the inequality that plagues U.S. households. While certain regions have endured this pain much more than others, this new rising trend may spell ongoing challenges for even more communities.” Jeremy Ney,  TIME

In this New York Times article, a Pulitzer Prize-winning sociologist explores why poverty exists in North America.

The American poor have access to cheap, mass-produced goods, as every American does. But that doesn’t mean they can access what matters most. Matthew Desmond,  The New York Times

The U.S. Census Bureau recently released its annual data on poverty, revealing contrasting trends for 2022. While one set of findings indicated that the overall number of Americans living in poverty remained stable compared to the previous two years, another survey highlighted a concerning increase in child poverty. The rate of child poverty in the U.S. doubled from 2021 to 2022, a spike attributed mainly to the cessation of the expanded child tax credit following the pandemic. These varied outcomes underscore the Census Bureau’s multifaceted methods to measure poverty.

“The nation’s suburbs accounted for the majority of increases in the poor population following the onset of the pandemic” Elizabeth Kneebone and Alan Berube,  Brookings

5.  The Basic Facts About Children in Poverty

Nearly 11 million children are living in poverty in America. This essay explores ow the crisis reached this point—and what steps must be taken to solve it.

“In America, nearly 11 million children are poor. That’s 1 in 7 kids, who make up almost one-third of all people living in poverty in this country.” Areeba Haider,  Center for American Progress

6.  The State of America’s Children  

This essay articles how, despite advancements, children continue to be the most impoverished demographic in the U.S., with particular subgroups — such as children of color, those under five, offspring of single mothers, and children residing in the South — facing the most severe poverty levels.

“Growing up in poverty has wide-ranging, sometimes lifelong, effects on children, putting them at a much higher risk of experiencing behavioral, social, emotional, and health challenges. Childhood poverty also plays an instrumental role in impairing a child’s ability and capacity to learn, build skills, and succeed academically.” Children’s Defense Fund

7.  COVID-19: This is how many Americans now live below the poverty line

This essay explores how the economic repercussions of the coronavirus pandemic 2020 led to a surge in U.S. poverty rates, with unemployment figures reaching unprecedented heights. The writer provides data confirming that individuals at the lowest economic strata bore the brunt of these challenges, indicating that the recession might have exacerbated income disparities, further widening the chasm between the affluent and the underprivileged.

“Poverty in the U.S. increased in 2020 as the coronavirus pandemic hammered the economy and unemployment soared. Those at the bottom of the economic ladder were hit hardest, new figures confirm, suggesting that the recession may have widened the gap between the rich and the poor.” Elena Delavega,  World Econmic Forum

If you’re tasked with writing an essay about poverty, consider using the below topics. They offer pointers for outlining and planning an essay about this challenging topic.

One of the most specific poverty essay topics to address involves the causes of poverty. You can craft an essay to examine the most common causes of extreme poverty. Here are a few topics you might want to include:

• Racial discrimination, particularly among African Americans, has been a common cause of poverty throughout American history. Discrimination and racism can make it hard for people to get the education they need, making it nearly impossible to get a job.
• A lack of access to adequate health care can also lead to poverty. When people do not have access to healthcare, they are more likely to get sick. This could make it hard for them to go to work while also leading to major medical bills.
• Inadequate food and water can lead to poverty as well. If people’s basic needs aren’t met, they focus on finding food and water instead of getting an education they can use to find a better job.

These are just a few of the most common causes of poverty you might want to highlight in your essay. These topics could help people see why some people are more likely to become impoverished than others. You might also be interested in these essays about poverty .

Poverty affects everyone, and the impacts of an impoverished lifestyle are very real. Furthermore, the disparities when comparing adult poverty to child poverty are also significant. This opens the doors to multiple possible essay topics. Here are a few points to include:

• When children live in poverty, their development is stunted. For example, they might not be able to get to school on time due to a lack of transportation, making it hard for them to keep up with their peers. Child poverty also leads to malnutrition, which can stunt their development.
• Poverty can impact familial relationships as well. For example, members of the same family could fight for limited resources, making it hard for family members to bond. In addition, malnutrition can stunt the growth of children.
• As a side effect of poverty, people have difficulty finding a safe place to live. This creates a challenging environment for everyone involved, and it is even harder for children to grow and develop.
• When poverty leads to homelessness, it is hard for someone to get a job. They don’t have an address to use for physical communication, which leads to employment concerns.

These are just a few of the many side effects of poverty. Of course, these impacts are felt by people across the board, but it is not unusual for children to feel the effects of poverty that much more. You might also be interested in these essays about unemployment .

Different countries take different approaches to reduce the number of people living in poverty

The issue of poverty is a major human rights concern, and many countries explore poverty reduction strategies to improve people’s quality of life. You might want to examine different strategies that different countries are taking while also suggesting how some countries can do more. A few ways to write this essay include:

• Explore the poverty level in America, comparing it to the poverty level of a European country. Then, explore why different countries take different strategies.
• Compare the minimum wage in one state, such as New York, to the minimum wage in another state, such as Alabama. Why is it higher in one state? What does raising the minimum wage do to the cost of living?
• Highlight a few advocacy groups and nonprofit organizations actively lobbying their governments to do more for low-income families. Then, talk about why some efforts are more successful than others.

Different countries take different approaches to reduce the number of people living in poverty. Poverty within each country is such a broad topic that you could write a different essay on how poverty could be decreased within the country. For more, check out our list of simple essays topics for intermediate writers .

You could also write an essay on the necessities people need to survive. You could take a look at information published by the United Nations , which focuses on getting people out of the cycle of poverty across the globe. The social problem of poverty can be addressed by giving people the necessities they need to survive, particularly in rural areas. Here are some of the areas you might want to include:

• Affordable housing
• Fresh, healthy food and clean water
• Access to an affordable education
• Access to affordable healthcare

Giving everyone these necessities could significantly improve their well-being and get people out of absolute poverty. You might even want to talk about whether these necessities vary depending on where someone is living.

There are a lot of medical and social issues that contribute to poverty, and you could write about how disabilities contribute to poverty. This is one of the most important essay topics because people could be disabled through no fault of their own. Some of the issues you might want to address in this essay include:

• Talk about the road someone faces if they become disabled while serving overseas. What is it like for people to apply for benefits through the Veterans’ Administration?
• Discuss what happens if someone becomes disabled while at work. What is it like for someone to pursue disability benefits if they are hurt doing a blue-collar job instead of a desk job?
• Research and discuss the experiences of disabled people and how their disability impacts their financial situation.

People who are disabled need to have money to survive for many reasons, such as the inability to work, limitations at home, and medical expenses. A lack of money, in this situation, can lead to a dangerous cycle that can make it hard for someone to be financially stable and live a comfortable lifestyle.

Many people talk about the cycle of poverty, yet many aren’t entirely sure what this means or what it entails. A few key points you should address in this essay include:

• When someone is born into poverty, income inequality can make it hard to get an education.
• A lack of education makes it hard for someone to get into a good school, which gives them the foundation they need to compete for a good job. 
• A lack of money can make it hard for someone to afford college, even if they get into a good school.
• Without attending a good college, it can be hard for someone to get a good job. This makes it hard for someone to support themselves or their families. 
• Without a good paycheck, it is nearly impossible for someone to keep their children out of poverty, limiting upward mobility into the middle class.

The problem of poverty is a positive feedback loop. It can be nearly impossible for those who live this every day to escape. Therefore, you might want to explore a few initiatives that could break the cycle of world poverty and explore other measures that could break this feedback loop.

Many business people and politicians have floated the idea of a universal basic income to give people the basic resources they need to survive. While this hasn’t gotten a lot of serious traction, you could write an essay to shed light on this idea. A few points to hit on include:

• What does a universal basic income mean, and how is it distributed?
• Some people are concerned about the impact this would have on taxes. How would this be paid for?
• What is the minimum amount of money someone would need to stay out of poverty? Is it different in different areas?
• What are a few of the biggest reasons major world governments haven’t passed this?

This is one of the best essay examples because it gives you a lot of room to be creative. However, there hasn’t been a concrete structure for implementing this plan, so you might want to afford one.

Another interesting topic you might want to explore is interviewing someone living in poverty or who has been impoverished. While you can talk about statistics all day, they won’t be as powerful as interviewing someone who has lived that life. A few questions you might want to ask during your interview include:

• What was it like growing up?
• How has living in poverty made it hard for you to get a job?
• What do you feel people misunderstand about those who live in poverty?
• When you need to find a meal, do you have a place you go to? Or is it somewhere different every day?
• What do you think is the main contributor to people living in poverty?

Remember that you can also craft different questions depending on your responses. You might want to let the interviewee read the essay when you are done to ensure all the information is accurate and correct.

The criminal justice system and poverty tend to go hand in hand. People with criminal records are more likely to be impoverished for several reasons. You might want to write an essay that hits on some of these points:

• Discuss the discriminatory practices of the criminal justice system both as they relate to socioeconomic status and as they relate to race.
• Explore just how hard it is for someone to get a job if they have a criminal record. Discuss how this might contribute to a life of poverty.
• Dive into how this creates a positive feedback loop. For example, when someone cannot get a job due to a criminal record, they might have to steal to survive, which worsens the issue.
• Review what the criminal justice system might be like for someone with resources when compared to someone who cannot afford to hire expert witnesses or pay for a good attorney.

You might want to include a few examples of disparate sentences for people in different socioeconomic situations to back up your points. 

Affordable housing can make a major difference when someone is trying to escape poverty

Many poverty-related problems could be reduced if people had access to affordable housing. While the cost of housing has increased dramatically in the United States , some initiatives exist to create affordable housing. Here are a few points to include:

• Talk about public programs that offer affordable housing to people from disadvantaged backgrounds.
• Discuss private programs, such as Habitat for Humanity , doing similar things.
• Review the positive impacts that stable housing has on both adults and children.
• Dive into other measures local and federal governments could take to provide more affordable housing for people.

There are a lot of political and social angles to address with this essay, so you might want to consider spreading this out across multiple papers. Affordable housing can make a major difference when trying to escape poverty. If you want to learn more, check out our essay writing tips !

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100 Poverty Essay Topic Ideas & Examples

Inside This Article

Poverty is a global issue that affects millions of people around the world. From lack of access to basic needs such as food, shelter, and healthcare to limited opportunities for education and employment, poverty is a complex and multifaceted problem that requires attention and action.

If you are tasked with writing an essay on poverty, it can be challenging to come up with a compelling topic that will engage your readers. To help you get started, here are 100 poverty essay topic ideas and examples to inspire your writing:

• The impact of poverty on children's education
• The cycle of poverty and how to break it
• Poverty and its connection to mental health issues
• The role of government policies in alleviating poverty
• Poverty and its effects on healthcare access
• Poverty and its impact on crime rates
• The relationship between poverty and homelessness
• Poverty and food insecurity
• Poverty and its impact on rural communities
• The connection between poverty and environmental degradation
• Poverty and its effects on mental health
• The role of education in breaking the cycle of poverty
• Poverty and its impact on women and children
• The effects of poverty on access to clean water
• Poverty and its connection to drug addiction
• The impact of poverty on access to healthcare in developing countries
• Poverty and its effects on access to quality education
• The relationship between poverty and human trafficking
• Poverty and its impact on access to affordable housing
• The role of technology in addressing poverty
• Poverty and its effects on access to clean energy
• The connection between poverty and political instability
• Poverty and its impact on access to basic sanitation
• The role of microfinance in alleviating poverty
• Poverty and its effects on access to legal services
• The relationship between poverty and social inequality
• Poverty and its impact on access to transportation
• Poverty and its effects on access to job opportunities
• The connection between poverty and domestic violence
• Poverty and its impact on access to vocational training
• The role of entrepreneurship in addressing poverty
• Poverty and its effects on access to affordable childcare
• Poverty and its connection to food deserts
• The impact of poverty on access to mental health services
• Poverty and its effects on access to clean air
• The relationship between poverty and child labor
• Poverty and its impact on access to quality healthcare
• Poverty and its effects on access to affordable education
• The connection between poverty and human rights violations
• Poverty and its impact on access to safe drinking water
• The role of community organizations in addressing poverty
• Poverty and its effects on access to public transportation
• Poverty and its connection to income inequality
• The impact of poverty on access to legal representation
• Poverty and its effects on access to affordable housing in urban areas
• The relationship between poverty and social exclusion
• Poverty and its impact on access to reproductive healthcare
• Poverty and its effects on access to affordable childcare in rural areas
• The connection between poverty and environmental justice
• Poverty and its impact on access to quality education in developing countries
• The role of social entrepreneurship in addressing poverty
• Poverty and its effects on access to clean energy in developing countries
• Poverty and its connection to human trafficking in urban areas
• The impact of poverty on access to mental health services in rural communities
• Poverty and its effects on access to affordable healthcare in developing countries
• The relationship between poverty and access to clean water in rural areas
• Poverty and its impact on access to vocational training in urban areas
• Poverty and its effects on access to job opportunities in rural communities
• The connection between poverty and access to legal services in developing countries
• Poverty and its impact on social inequality in urban areas
• Poverty and its effects on access to affordable childcare in developing countries
• The role of technology in addressing poverty in rural communities
• Poverty and its connection to food insecurity in urban areas
• The impact of poverty on access to clean air in developing countries
• Poverty and its effects on access to public transportation in rural areas
• Poverty and its connection to income inequality in urban areas
• The relationship between poverty and social exclusion in developing countries
• Poverty and its impact on access to reproductive healthcare in rural communities
• Poverty and its effects on access to safe drinking water in urban areas
• The connection between poverty and environmental justice in developing countries
• Poverty and its impact on access to quality education in rural communities
• Poverty and its effects on access to legal representation in urban areas
• The role of community organizations in addressing poverty in developing countries
• Poverty and its connection to human rights violations in rural communities
• The impact of poverty on access to mental health services in urban areas
• Poverty and its effects on access to affordable healthcare in rural communities
• The relationship between poverty and access to clean water in developing countries
• Poverty and its impact on access to vocational training in rural communities
• Poverty and its effects on access to job opportunities in developing countries
• The connection between poverty and access to legal services in urban areas
• Poverty and its impact on social inequality in rural communities
• Poverty and its effects on access to affordable childcare in urban areas
• The role of technology in addressing poverty in developing countries
• Poverty and its connection to food insecurity in rural communities
• The impact of poverty on access to clean air in urban areas
• Poverty and its effects on access to public transportation in developing countries
• Poverty and its connection to income inequality in rural communities
• The relationship between poverty and social exclusion in urban areas
• Poverty and its impact on access to reproductive healthcare in developing countries
• Poverty and its effects on access to safe drinking water in rural communities
• The connection between poverty and environmental justice in urban areas
• Poverty and its effects on access to legal representation in rural communities
• The role of community organizations in addressing poverty in urban areas
• Poverty and its connection to human rights violations in developing countries
• Poverty and its effects on access to affordable healthcare in urban areas
• The relationship between poverty and access to clean water in rural communities
• Poverty and its impact on access to vocational training in developing countries
• Poverty and its effects on access to job opportunities in urban areas

These are just a few examples of the many topics you could explore in an essay about poverty. Whether you choose to focus on the impact of poverty on education, healthcare, or social inequality, there are endless possibilities for engaging and informative writing on this important issue. By selecting a topic that resonates with you and conducting thorough research, you can create a compelling and thought-provoking essay that sheds light on the complexities of poverty and inspires action towards positive change.

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5 Essays About Poverty Everyone Should Know

Poverty is one of the driving forces of inequality in the world. Between 1990-2015, much progress was made. The number of people living on less than $1.90 went from 36% to 10%. However, according to the World Bank , the COVID-19 pandemic represents a serious problem that disproportionately impacts the poor. Research released in February of 2020 shows that by 2030, up to ⅔ of the “global extreme poor” will be living in conflict-affected and fragile economies. Poverty will remain a major human rights issue for decades to come. Here are five essays about the issue that everyone should know:

“We need an economic bill of rights” –  Martin Luther King Jr.

The Guardian published an abridged version of this essay in 2018, which was originally released in Look magazine just after Dr. King was killed. In this piece, Dr. King explains why an economic bill of rights is necessary. He points out that while mass unemployment within the black community is a “social problem,” it’s a “depression” in the white community. An economic bill of rights would give a job to everyone who wants one and who can work. It would also give an income to those who can’t work. Dr. King affirms his commitment to non-violence. He’s fully aware that tensions are high. He quotes a spiritual, writing “timing is winding up.” Even while the nation progresses, poverty is getting worse.

This essay was reprinted and abridged in The Guardian in an arrangement with The Heirs to the Estate of Martin Luther King. Jr. The most visible representative of the Civil Rights Movement beginning in 1955, Dr. King was assassinated in 1968. His essays and speeches remain timely.

“How Poverty Can Follow Children Into Adulthood” – Priyanka Boghani

This article is from 2017, but it’s more relevant than ever because it was written when 2012 was the worst economic crisis since the Great Depression. That’s no longer the case. In 2012, around ¼ American children were in poverty. Five years later, children were still more likely than adults to be poor. This is especially true for children of colour. Consequences of poverty include anxiety, hunger, and homelessness. This essay also looks at the long-term consequences that come from growing up in poverty. A child can develop health problems that affect them in adulthood. Poverty can also harm a child’s brain development. Being aware of how poverty affects children and follows them into adulthood is essential as the world deals with the economic fallout from the pandemic.

Priyanka Boghani is a journalist at PBS Frontline. She focuses on U.S. foreign policy, humanitarian crises, and conflicts in the Middle East. She also assists in managing Frontline’s social accounts.

“5 Reasons COVID-19 Will Impact the Fight to End Extreme Poverty” – Leah Rodriguez

For decades, the UN has attempted to end extreme poverty. In the face of the novel coronavirus outbreak, new challenges threaten the fight against poverty. In this essay, Dr. Natalie Linos, a Harvard social epidemiologist, urges the world to have a “social conversation” about how the disease impacts poverty and inequality. If nothing is done, it’s unlikely that the UN will meet its Global Goals by 2030. Poverty and COVID-19 intersect in five key ways. For one, low-income people are more vulnerable to disease. They also don’t have equal access to healthcare or job stability. This piece provides a clear, concise summary of why this outbreak is especially concerning for the global poor.

Leah Rodriguez’s writing at Global Citizen focuses on women, girls, water, and sanitation. She’s also worked as a web producer and homepage editor for New York Magazine’s The Cut.

“Climate apartheid”: World’s poor to suffer most from disasters” – Al Jazeera and news Agencies

The consequences of climate change are well-known to experts like Philip Alston, the special rapporteur on extreme poverty and human rights. In 2019, he submitted a report to the UN Human Rights Council sounding the alarm on how climate change will devastate the poor. While the wealthy will be able to pay their way out of devastation, the poor will not. This will end up creating a “climate apartheid.” Alston states that if climate change isn’t addressed, it will undo the last five decades of progress in poverty education, as well as global health and development .

“Nickel and Dimed: On (not) getting by in America” – Barbara Ehrenreich

In this excerpt from her book Nickel and Dimed, Ehrenreich describes her experience choosing to live undercover as an “unskilled worker” in the US. She wanted to investigate the impact the 1996 welfare reform act had on the working poor. Released in 2001, the events take place between the spring of 1998 and the summer of 2000. Ehrenreich decided to live in a town close to her “real life” and finds a place to live and a job. She has her eyes opened to the challenges and “special costs” of being poor. In 2019, The Guardian ranked the book 13th on their list of 100 best books of the 21st century.

Barbara Ehrenreich is the author of 21 books and an activist. She’s worked as an award-winning columnist and essayist.

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About the author, emmaline soken-huberty.

Emmaline Soken-Huberty is a freelance writer based in Portland, Oregon. She started to become interested in human rights while attending college, eventually getting a concentration in human rights and humanitarianism. LGBTQ+ rights, women’s rights, and climate change are of special concern to her. In her spare time, she can be found reading or enjoying Oregon’s natural beauty with her husband and dog.

Why Poverty Persists in America

A Pulitzer Prize-winning sociologist offers a new explanation for an intractable problem.

A mother and son living in a Walmart parking lot in North Dakota in 2012. Credit... Eugene Richards

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By Matthew Desmond

• Published March 9, 2023 Updated April 3, 2023

In the past 50 years, scientists have mapped the entire human genome and eradicated smallpox. Here in the United States, infant-mortality rates and deaths from heart disease have fallen by roughly 70 percent, and the average American has gained almost a decade of life. Climate change was recognized as an existential threat. The internet was invented.

On the problem of poverty, though, there has been no real improvement — just a long stasis. As estimated by the federal government’s poverty line, 12.6 percent of the U.S. population was poor in 1970; two decades later, it was 13.5 percent; in 2010, it was 15.1 percent; and in 2019, it was 10.5 percent. To graph the share of Americans living in poverty over the past half-century amounts to drawing a line that resembles gently rolling hills. The line curves slightly up, then slightly down, then back up again over the years, staying steady through Democratic and Republican administrations, rising in recessions and falling in boom years.

What accounts for this lack of progress? It cannot be chalked up to how the poor are counted: Different measures spit out the same embarrassing result. When the government began reporting the Supplemental Poverty Measure in 2011, designed to overcome many of the flaws of the Official Poverty Measure, including not accounting for regional differences in costs of living and government benefits, the United States officially gained three million more poor people. Possible reductions in poverty from counting aid like food stamps and tax benefits were more than offset by recognizing how low-income people were burdened by rising housing and health care costs.

The American poor have access to cheap, mass-produced goods, as every American does. But that doesn’t mean they can access what matters most.

Any fair assessment of poverty must confront the breathtaking march of material progress. But the fact that standards of living have risen across the board doesn’t mean that poverty itself has fallen. Forty years ago, only the rich could afford cellphones. But cellphones have become more affordable over the past few decades, and now most Americans have one, including many poor people. This has led observers like Ron Haskins and Isabel Sawhill, senior fellows at the Brookings Institution, to assert that “access to certain consumer goods,” like TVs, microwave ovens and cellphones, shows that “the poor are not quite so poor after all.”

No, it doesn’t. You can’t eat a cellphone. A cellphone doesn’t grant you stable housing, affordable medical and dental care or adequate child care. In fact, as things like cellphones have become cheaper, the cost of the most necessary of life’s necessities, like health care and rent, has increased. From 2000 to 2022 in the average American city, the cost of fuel and utilities increased by 115 percent. The American poor, living as they do in the center of global capitalism, have access to cheap, mass-produced goods, as every American does. But that doesn’t mean they can access what matters most. As Michael Harrington put it 60 years ago: “It is much easier in the United States to be decently dressed than it is to be decently housed, fed or doctored.”

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• Poverty Essay for Students in English

Essay on Poverty

Poverty is a disease that has no cure. The deeper this disease is, the deeper its wound. By the way, man lives under compulsion. But usually one wants to avoid it. Poverty is a condition of extreme poverty for any person or human being. This is a situation when a person starts to lack important things in his life such as the roof, necessary food, clothes, medicines, etc. to continue his life.

The causes of poverty are excessive population, fatal and contagious diseases, natural disasters, low agricultural yields, unemployment, casteism, illiteracy, gender inequality, environmental problems, changing trends in the economy of the country, untouchability, little or limited access to people's rights, Problems such as political violence, sponsored crime, corruption, lack of encouragement, inaction, ancient social beliefs, etc. have to be faced.

Poverty has become a big problem of the world, efforts are being made across the world today to remove poverty, but the problem is that it does not take the name of ending. This problem affects a human's economic and daily life. Poverty teaches man to live like a slave in which he has to change the place over time, in this situation due to the lack of education of the poor, his nature and speech also make a difference. Living in a world of poor people has become a curse. Getting enough money to get food is like getting relief from a curse for the poor, that's why they do not have access to education.

Reasons of Poverty

There are many reasons that have continued with carrying it for a long time. Because of this,  freedom, mental and physical fitness, and lack of security in a person remains. It is very important that in order to live a normal life, the country and the whole world will have to work together to bring proper physical and mental health, complete education, a home for everyone, and other important things.

In today's time, there is the problem of poverty which gives all the pain, pain, and despair to the poor. Due to the lack of money from poverty, I show the lack of many things. Poverty makes children spend life in compulsion. If forced to make bread, sometimes in bringing children's books. At that time he is also unable to raise children.

We can tell poverty in many ways like it has become a common thing in India. Most of the people here are unable to get the things they need. Here a vast section of the population is illiterate, hungry, and forced to live without clothes and a home. About half of India's population suffers from this epidemic of poverty.

A poor person lives his life without possession of basic things like food for two times, clean water, house, clothes, proper education, etc. There are many reasons for poverty in India. Incorrect distribution of national income is also a reason. People in the low-income group are much poorer than those in the high-income group. Children of poor families never get proper education, nutrition, and a happy childhood environment. The main cause of poverty is illiteracy, corruption, growing population, weak agriculture, the growing gap between rich and poverty, etc.

Measures to Control Poverty

Corruption has to be erased.

Unemployed will have to give proper employment

A growing population will have to be stopped

Farmers have to be given proper facilities for farming

Education should be provided to children for proper education

Poverty is not just a human problem but it is a national problem. It should be solved by implementing some effective methods on a quick basis. Every person should be united by ending corruption. A problem has been created in which he does not get even the basics. That is why at present, many measures are being taken to prevent poverty so that the standard of living of people around the world can be improved.

Short Essays on Poverty

Poverty is akin to being a slave, as a person cannot achieve anything he desires. It has various faces that alter depending on who you are, where you are, and when. It can be defined in various ways depending on how a person feels or experiences it.

Poverty is a state that no one wants to be in, but it must be removed owing to cultural norms, natural disasters, or a lack of adequate education. The individual who is experiencing it frequently wishes to flee. Poverty is a call for poor people to earn enough money to eat, have access to education, have adequate shelter, dress appropriately, and take steps to protect themselves from social and political violence.

It's a problem that goes unnoticed yet significantly impacts a person's social life. Poverty is an entirely avoidable problem, but there are various reasons why it has persisted in the past.

Poverty robs people of their freedom, mental health, physical well-being, and security. Everyone must strive to eradicate poverty from the country and the world, ensuring appropriate physical and mental health, full literacy, a home for all, and other necessities for living a simple life.

When a person cannot do anything according to his will, he is said to be in poverty. Many different faces alter depending on who you are, where you are, and time. It can be characterized in a variety of ways, depending on how the person feels or what they have achieved. Poverty is a circumstance that no one wants to be in, even if it is forced upon them due to a lack of experience, nature, natural disasters, or a lack of suitable education. Humans have won it, but they prefer to stay away from it. Poverty is a call for needed clothing and protection against social and political violence for the poor to earn enough money to buy food, receive an education, and find a suitable place to live.

This is an unseen problem that harms a person's social life. Even though numerous factors have contributed to its long-term persistence, poverty is a perfectly preventable problem. As a result, a person's freedom, mental and physical well-being, and sense of security are all compromised. It is critical to bring poverty and poverty from worldwide to work together to live everyday life, provide adequate physical and mental health, complete education, a home for everyone, and other essential things.

FAQs on Poverty Essay for Students in English

1. What are the Effects of Poverty?

When people are not able to afford their basic necessities. For example medications and hospital fees are impossible to afford for that means they choose crook ways of obtaining money i.e. stealing, robbery, etc.  

2. What are the Possible Ways to Remove Poverty?

Since India is a developing country, eliminating poverty here is much tougher than in other countries but still some measures can be taken and government assistance would be much helpful in this step which requires some relevant planning and policies for those who fall under the poverty line. Another major factor of poverty is illiteracy and unemployment. Therefore education is the most efficient tool to confine the poverty line in the country. 

3. What is the Poverty Line?

The Below Poverty Line (BPL) signifies the state of people who fall under poverty status. It also symbolizes an economic drawback. In addition, it is used for people who are in need of help and assistance from the government.

4. What are the causes of poverty?

Poverty has several causes, including a lack of access to essentials such as water, food, shelter, education, and healthcare. Poverty is also caused by inequities such as gender or ethnic discrimination, bad governance, conflict, exploitation, and domestic violence. These disparities not only cause a person or a society to fall into poverty, but they can also prevent people from receiving social assistance that could help them get out of it. Due to political upheaval, past or present conflict, corrupt authorities, and lousy infrastructure that restricts access to education, clean water, healthcare, and other essentials, children and communities in fragile states confront greater poverty rates.

5. What can we do to put an end to extreme poverty?

We can aid in the eradication of extreme poverty by determining what causes it in a particular community and then determining what needs to change. Because poverty manifests itself differently in different regions and is caused by different circumstances, the work to end extreme poverty differs depending on the situation. More economic resources are needed to assist people in increasing their income and better providing for themselves and their families. To ensure that poverty does not return, the work must be sustainable, regardless of the solution. As a result, the community must be involved at every stage.

6. What criteria are used to assess poverty?

Each country's government determines poverty levels by conducting home surveys of its citizens. The World Bank, for example, assists and may conduct their surveys, although data collecting is time-consuming and slow. New high-frequency surveys are being created and tested, leveraging estimations and mobile phone technologies. If you want to learn more about these topics, download the Vedantu App that has been specifically designed and curated for students by experts.

7. What is the poverty cycle?

Poverty can be a catch-22 situation. To escape poverty, a person requires access to possibilities such as education, clean water, local medical services, and financial means. Poverty creates a generational cycle if these critical factors are not there. If parents cannot afford to take their children to school, they will struggle to find work when they grow up. Even natural disasters and conflicts can exacerbate the poverty cycle by bringing more people.

8. What are the United Nations' Sustainable Development Goals (SDGs)?

The Sustainable Development Goals (SDGs) are a set of goals for countries worldwide to work together in a global partnership for the benefit of people, the environment, and prosperity. The Sustainable Development Goals aim to abolish extreme poverty for all people everywhere by 2030 and to reduce the proportion of people living in poverty in all forms by at least half. In September 2015, the United Nations member states accepted this objective as one of 17 to end extreme poverty.

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Essay on Poverty: Samples in 100, 200, 300 Words

• Updated on  
• Oct 14, 2023

Poverty is a deep-rooted problem that continues to affect a large portion of the world’s population today. It touches on several aspects of human life including but not limited to political, economic, and social elements. Even though there are several methods to escape poverty, still issues arise due to a lack of adequate unity among the country’s citizens. Here are some essays on poverty which will give you insights about this topic.

Table of Contents

• 1 Essay on Poverty in 100 words
• 2 Essay on Poverty in 200 words
• 3.1 Reasons Behind Poverty
• 3.2 World Poverty Conditions
• 3.3 Role of NGOs to Eradicate Poverty
• 3.4 What Can be Done by Us?

Essay on Poverty in 100 words

Poverty is defined as a state of scarcity, and the lack of material possessions to such an extreme extent that people have difficulties in fulfilling their basic needs. Robert McNamara, a former World Bank President, states that extreme poverty is limited by illiteracy, malnutrition, disease, high infant mortality rate, squalid conditions of living, and low life expectancy.

In order to eradicate poverty in a country, strict measures need to be taken on all levels. The political system needs to address this issue with utmost sincerity and strategic implementation in such a way that it improves the lives of people, especially the ones living below the poverty line. 

Also Read: Speech on Made in India

Essay on Poverty in 200 words

Poverty is like a parasite that degrades its host and eventually causes a lot of damage to the host. It is basically the scarcity of basic needs that leads to an extremely degraded life and even low life expectancy. It includes a lack of food, shelter, medication, education, and other basic necessities. Poverty is a more serious circumstance where people are forced to starve. It can be caused by a variety of factors depending upon the country. 

Every country that is hit with pandemic diseases, experiences an increase in poverty rates. This is because of the fact that poor people are unable to receive adequate medical care and hence are unable to maintain their health. This renders the people powerless and even puts their liberty in jeopardy. This is because of the fact that poor people can become trapped in a vicious cycle of servitude. The condition of poverty is a distressing one that causes pain, despair, and grief in the lives of the ones it affects. 

This is also a negative scenario that prevents a child from attending basic education. It’s the lack of money that prevents people from living sufficiently. Also, it is the cause of more serious social concerns such as slavery, child labour, etc. Hence action is needed on the same with utmost sincerity. 

Essay on Poverty in 300 words

Poverty is a multifaceted concept that includes several aspects such as social aspects, political elements, economic aspects, etc. It is basically associated with undermining a variety of essential human attributes such as health, education, etc. Despite the growth and development of the economies of countries, poverty still exists in almost every one of them. 

Reasons Behind Poverty

There are several contributing reasons behind poverty in a nation. Some of them are mentioned below:-

• Lack of literacy among citizens
• Lack of Capital in the country
• Large families and a rapidly growing population
• Limited employment opportunities

There are even urban areas where the slum population is increasing. These are deprived of many basic amenities such as sanitation, drainage systems, and low-cost water supply, etc. 

World Poverty Conditions

According to UNICEF , around 22000 children lose their lives each day due to poverty. There are approximately 1.9 billion children in developing countries in the world and India is also among them. Out of these, approximately 640 million don’t have a proper shelter, 270 million are living without medical facilities, and approximately 400 million don’t have access to safe water. This worldwide situation is growing at a fast pace. 

Role of NGOs to Eradicate Poverty

The approaches by NGOs basically include helping the poor by providing various public services such as medical services etc.

They also play a major role in mobilizing the services recommended by the government. They have various approaches and strategies that directly help the poor in various ways.

What Can be Done by Us?

We help in eradicating poverty by increasing employment opportunities.

Ensuring financial services and providing the same is another such measure that can be taken.

Recognizing social entrepreneurs as people of influence, conveying to them the seriousness of this situation, and then eventually making people aware of the same is another thing that can be done. 

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Writing an essay on poverty in 200 words requires you to describe various aspects of this topic such as what causes poverty, how it affects individuals and society as a whole, etc. The condition of poverty is a distressing one that causes pain, despair, and grief in the lives of the ones it affects.

An essay on poverty may be started as follows:- Poverty is a deep-rooted problem that continues to affect a large portion of the world’s population today. It touches on several aspects of human life including but not limited to political, economic, and social elements. Even though there are several methods to escape poverty, still issues arise due to a lack of adequate unity among the country’s citizens.

Poverty in 100 words: Poverty is defined as a state of scarcity, and the lack of material possessions to such an extreme extent that people have difficulties in fulfilling their basic needs. Robert McNamara, a former World Bank President, states that extreme poverty is limited by illiteracy, malnutrition, disease, high infant mortality rate, squalid conditions of living, and low life expectancy. In order to eradicate poverty in a country, strict measures need to be taken on all levels. The political system needs to address this issue with utmost sincerity and strategic implementation in such a way that it improves the lives of people, especially the ones living below the poverty line.

For more information on such interesting topics, visit our essay writing page and follow Leverage Edu .

Deepansh Gautam

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Poverty - List of Free Essay Examples And Topic Ideas

Poverty, a state of deprivation of basic human needs and economic opportunities, is a pervasive issue across the globe. Essays could explore the systemic causes of poverty, its impact on individuals and communities, and the various strategies employed to alleviate poverty. Additionally, discussions might delve into the role of international aid, the impact of globalization, and the ethical responsibilities of affluent individuals and nations toward poverty reduction. A substantial compilation of free essay instances related to Poverty you can find at PapersOwl Website. You can use our samples for inspiration to write your own essay, research paper, or just to explore a new topic for yourself.

Poverty and Drug Abuse Addiction

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Changing the Face of Poverty Summary

In Changing the Face of Poverty the author, Diana George, begins with her annual food drive at St. Vincent de Paul, and every day she receives bills and catalogs with appeals like the Navajo Health Foundation, little Brothers, and many others. In those was Habitat for Humanity. As a member of this club, I know the duties and responsibility towards this organization. George states that Habitat for Humanity is not as helpful as it seems. She says that the organization […]

Racism in Criminal Justice System

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Impact of Poverty on the Society

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Poverty in the United States

Poverty is a major issue in our world today, it is when people are not able to afford a minimum standard of living to survive. Poverty is the removal of financial stability to afford necessities. Bill Fay, veteran journalist defined poverty as a pervasive human condition of being unable to obtain or provide a standard level of food, water, and shelter. In 2015, a study was done and reported that 60% of people will experience at least 1 year of […]

Unemployment a Major Cause of Homelessness

Homelessness or known as extreme poverty can be interpreted as a circumstance when people have no place to stay with the result that they end up live in the street, under the bridge even at the side of the river. There are 3.5 million Americans are homeless each year. Of these, more than 1 million are children and on any given night, more than 300,000 children are homeless. They who do not have an occupation are the one that is […]

Breaking the Poverty Trap

One of the reasons the rich get richer, and the poor get poorer, is because of the lack of not knowing and ignorance hindering half the world, allowing the cycle of poverty to continue. Poverty trap is as a spiraling mechanism, that forces people to remain poor binding many to no hope of escaping. The poverty trap has been an ongoing cycle within generations even those close to me, that has tremendously taken a negative toll on society and my […]

Childhood Poverty

Abstract Poverty is viewed throughout the world as a large social problem that continues to advance with time. Since 1960, poverty has continued to flourish into a problem that has affected a large majority of the population, including our children. Childhood poverty affects the psychological and biological development, as well as three main levels of social systems: micro, mezzo and macro. Even though there has been active research on poverty, generational poverty and childhood poverty, no active changes have been […]

Homelessness in the United States

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Poverty in Developing Countries

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Closing the Education Gap by Attacking Poverty Among Children

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Financial Education and Poverty

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The Poverty Among Us

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Without affordable housing there will be a continuous increase in minorities which also leads to a higher poverty rate. Poverty is the state of being extremely poor. Affordable housing helps decrease poverty in many ways than one. Affordable housing fulfills a human’s basic need for shelter as well as provides privacy for families. Those who receive affordable housing assistance and have children, benefit from better nutrition. Affordable housing would reduce poverty and should be available to those who are in […]

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Compared to other developing countries in Latin America, Chile's political and economic development is distinctive. The country is one of the democratic exceptions, owing to its relatively poor and small population at the time of Spanish colonial rule. The indigenous population is also rather small, and the country has a high degree of ethnic and cultural homogeneity (Hillman and D’Agostino 2011, 67-107). However, today's regime wasn't always democratic. Between 1973 and 1990, Chile was under an authoritarian regime led by […]

Living in Poverty and being Rich

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Poverty and Obesity

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A Problem Child Poverty and Effects on Education

“The impact of poverty on a child’s academic achievement is significant and starts early,” – Jonah Edelman, co-founder and chief executive officer of Stand for Children (Taylor, 2017). According to the U.S. Census Bureau in 2015, around 20 percent of children in the U.S. lived in poverty (Taylor, 2017). Rather than focusing all our time, attention, and resources on rewriting standards and adding higher stakes standardized tests, are we missing a larger looming issue? Studies have shown that student poverty […]

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Essay About Poverty It has existed for many years and still exists today, growing and intensifying. Today poverty remains one of the biggest. In Singer’s essay “The Solution to World poverty,” he suggests the Americans should donate all their money that is not required for necessities to help feed those that are less fortunate. This claim is not true due to the fact that Singer fails to mention how much people struggle and suffer from poverty in America alone, people worked hard for their money; therefore, they deserve to spend their hard-earned money, and how the economy depends on the Americans expenses, so if people don’t spend money on expenses, the economy will crash. Singer begins by comparing Dora, the woman who sells an orphan for a new television set. Singer then introduces Bob and how he chooses to save his expensive Bugatti from a train instead of saving a child’s life, he compares this story to Americans and their lack of donation and aids and how we “too have opportunities to save the lives of children” (2). In his essay, Singer’s aim is to target all Americans, implying that everyone should donate and help. But what he fails to mention is how even in America people also struggle and suffer from poverty. In the journal “Poverty in America: Trends and Explanations,” Hilary W. Hoynes, Marianne E. Page and Ann Huff Stevens state, “The official poverty rate is 12.3 percent, based on the U.S. Census Bureau’s 2017 estimates. That year, an estimated 39.7 million Americans lived in poverty according to the official measure. 18.5 million People reported deep poverty, which means a household income below 50 percent of their 2017 poverty threshold. These individuals represented an estimated 5.7 percent of all Americans and 46.7 percent of those in poverty.” There are so many people in America who are also in need, people that are also suffering. There are without work and without insurance, people whose homes are lose to fires, storms, and bankruptcy. The idea that individuals must help their own first before helping others is reasonable and rational. Though it could be great to help all those in need, American should aid their own first and end poverty in their own country before helping to others for there are times when it is just not possible. 

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Mental health effects of poverty, hunger, and homelessness on children and teens

Rising inflation and an uncertain economy are deeply affecting the lives of millions of Americans, particularly those living in low-income communities. It may seem impossible for a family of four to survive on just over $27,000 per year or a single person on just over $15,000, but that’s what millions of people do everyday in the United States. Approximately 37.9 million Americans, or just under 12%, now live in poverty, according to the U.S. Census Bureau .

Additional data from the Bureau show that children are more likely to experience poverty than people over the age of 18. Approximately one in six kids, 16% of all children, live in families with incomes below the official poverty line.

Those who are poor face challenges beyond a lack of resources. They also experience mental and physical issues at a much higher rate than those living above the poverty line. Read on for a summary of the myriad effects of poverty, homelessness, and hunger on children and youth. And for more information on APA’s work on issues surrounding socioeconomic status, please see the Office of Socioeconomic Status .

Who is most affected?

Poverty rates are disproportionately higher among most non-White populations. Compared to 8.2% of White Americans living in poverty, 26.8% of American Indian and Alaska Natives, 19.5% of Blacks, 17% of Hispanics and 8.1% of Asians are currently living in poverty.

Similarly, Black, Hispanic, and Indigenous children are overrepresented among children living below the poverty line. More specifically, 35.5% of Black people living in poverty in the U.S. are below the age of 18. In addition, 40.7% of Hispanic people living below the poverty line in the U.S. are younger than age 18, and 29.1% of American Indian and Native American children lived in poverty in 2018. In contrast, approximately 21% of White people living in poverty in the U.S. are less than 18 years old.

Furthermore, families with a female head of household are more than twice as likely to live in poverty compared to families with a male head of household. Twenty-three percent of female-headed households live in poverty compared to 11.4% of male-headed households, according to the U.S. Census Bureau .

What are the effects of poverty on children and teens?

The impact of poverty on young children is significant and long lasting. Poverty is associated with substandard housing, hunger, homelessness, inadequate childcare, unsafe neighborhoods, and under-resourced schools. In addition, low-income children are at greater risk than higher-income children for a range of cognitive, emotional, and health-related problems, including detrimental effects on executive functioning, below average academic achievement, poor social emotional functioning, developmental delays, behavioral problems, asthma, inadequate nutrition, low birth weight, and higher rates of pneumonia.

Psychological research also shows that living in poverty is associated with differences in structural and functional brain development in children and adolescents in areas related to cognitive processes that are critical for learning, communication, and academic achievement, including social emotional processing, memory, language, and executive functioning.

Children and families living in poverty often attend under-resourced, overcrowded schools that lack educational opportunities, books, supplies, and appropriate technology due to local funding policies. In addition, families living below the poverty line often live in school districts without adequate equal learning experiences for both gifted and special needs students with learning differences and where high school dropout rates are high .

What are the effects of hunger on children and teens?

One in eight U.S. households with children, approximately 12.5%, could not buy enough food for their families in 2021 , considerably higher than the rate for households without children (9.4%). Black (19.8%) and Latinx (16.25%) households are disproportionately impacted by food insecurity, with food insecurity rates in 2021 triple and double the rate of White households (7%), respectively.

Research has found that hunger and undernutrition can have a host of negative effects on child development. For example, maternal undernutrition during pregnancy increases the risk of negative birth outcomes, including premature birth, low birth weight, smaller head size, and lower brain weight. In addition, children experiencing hunger are at least twice as likely to report being in fair or poor health and at least 1.4 times more likely to have asthma, compared to food-secure children.

The first three years of a child’s life are a period of rapid brain development. Too little energy, protein and nutrients during this sensitive period can lead to lasting deficits in cognitive, social and emotional development . School-age children who experience severe hunger are at increased risk for poor mental health and lower academic performance , and often lag behind their peers in social and emotional skills .

What are the effects of homelessness on children and teens?

Approximately 1.2 million public school students experienced homelessness during the 2019-2020 school year, according to the National Center for Homeless Education (PDF, 1.4MB) . The report also found that students of color experienced homelessness at higher proportions than expected based on the overall number of students. Hispanic and Latino students accounted for 28% of the overall student body but 38% of students experiencing homelessness, while Black students accounted for 15% of the overall student body but 27% of students experiencing homelessness. While White students accounted for 46% of all students enrolled in public schools, they represented 26% of students experiencing homelessness.

Homelessness can have a tremendous impact on children, from their education, physical and mental health, sense of safety, and overall development. Children experiencing homelessness frequently need to worry about where they will live, their pets, their belongings, and other family members. In addition, homeless children are less likely to have adequate access to medical and dental care, and may be affected by a variety of health challenges due to inadequate nutrition and access to food, education interruptions, trauma, and disruption in family dynamics.

In terms of academic achievement, students experiencing homelessness are more than twice as likely to be chronically absent than non-homeless students , with greater rates among Black and Native American or Alaska Native students. They are also more likely to change schools multiple times and to be suspended—especially students of color.

Further, research shows that students reporting homelessness have higher rates of victimization, including increased odds of being sexually and physically victimized, and bullied. Student homelessness correlates with other problems, even when controlling for other risks. They experienced significantly greater odds of suicidality, substance abuse, alcohol abuse, risky sexual behavior, and poor grades in school.

What can you do to help children and families experiencing poverty, hunger, and homelessness?

There are many ways that you can help fight poverty in America. You can:

• Volunteer your time with charities and organizations that provide assistance to low-income and homeless children and families.
• Donate money, food, and clothing to homeless shelters and other charities in your community.
• Donate school supplies and books to underresourced schools in your area.
• Improve access to physical, mental, and behavioral health care for low-income Americans by eliminating barriers such as limitations in health care coverage.
• Create a “safety net” for children and families that provides real protection against the harmful effects of economic insecurity.
• Increase the minimum wage, affordable housing and job skills training for low-income and homeless Americans.
• Intervene in early childhood to support the health and educational development of low-income children.
• Provide support for low-income and food insecure children such as Head Start , the National School Lunch Program , and Temporary Assistance for Needy Families (TANF) .
• Increase resources for public education and access to higher education.
• Support research on poverty and its relationship to health, education, and well-being.
• Resolution on Poverty and SES
• Pathways for addressing deep poverty
• APA Deep Poverty Initiative

Poverty in the United States

Poverty in the united states is an existing problem for American society despite being a first-world country. In 2020, the U.S. had an estimated 37.2 million people living in poverty. Poverty needs more resources to meet basic needs such as food, housing, water, clothing, and healthcare. People cannot access these needs for different reasons, such as debt traps, inflation, unemployment, poor education, income inequality, and other socio-economic and political issues. The U.S. is prone to these factors, which means that poverty continues to prevail even in the 21 st  century. Thus, the focus of this essay is to highlight two significant aspects of poverty in the U.S.

Income is one of the main aspects of poverty influencing most other aspects. Income originated from employment or other forms of investment for most Americans. Income constantly determines the poverty level because it determines the quality of life a population can afford (Percheski, 2019). While a large population has remained employed between 2010 and 2020, about 37,000 Americans have remained below the poverty line. It means that despite a large part of the population being employed, other socio-economic factors impact income resulting in constant poverty. For example, the income data from the 2015-2016 fiscal year show a 3.2 increase in household income, manifested by a 2.2 million increase in full-time workers. As a result, the poverty level declined by 0.8%, which saw the poverty rate fall to about 12.7% (Fontenot et al., 2017). The data show that despite the high employment rate, the decline levels in the poverty rate are minimal.

The income rate has, however, been impacted by income inequality on race, sex, and class, which impact income rates, wealth, and living standards. In addition, the rising living standards and inflation impact the poverty level, especially in places like California. According to Grusky et al. (2015), the poverty levels in California are the perfect representation the income-related poverty in the U.S. Many families in California live just under the poverty rate. For example, an estimated 22% of Californians were living below the poverty rate in 2011. The high living standard due to economic policies in California has continuously caused a large part of the population to remain below the poverty line. Despite the high employment rate from 2013, the income of about a fifth of the Californian population remains insufficient for a quality life.

There is a continued push for the legal minimum wage across the U.S. to get to $15 per hour as the cost of living increases. About a quarter of the American population remains unskilled, meaning that they are employed in the minimum wage category, which pushes most of them to work multiple jobs to meet the cost of living. An estimated 75% of people working in the private sector work two or more jobs, resulting in most Americans working more than 14 hours per day. The income levels remain lower for most American compared to the needs forcing them to find a better way to compensate for income shortages (Percheski, 2019). Working double shifts is a common trend among many Americans trying to make ends meet.

Homelessness remains a significant aspect of poverty in the U.S. Lack of shelter today has been seen as an element of measuring the poverty rate. Before 2007, many people in the U.S. were on their way to owning homes, and many were on mortgage plans to pay for their houses. However, after the 2007 to 2009 financial crisis emanating from the housing finance sector, the number of homeless people rose by 30% (Fontenot et al., 2017). Although the number significantly improved years after the recession, over 20% of the population still needs access to quality housing because of the ever-rising housing cost.

Lack of housing has been a part of poverty as homeless people do not have access to the monetary resources to pay for rent or mortgages. While housing is a part of poverty, it impacts many other poverty aspects, such as security, health, food, and much more. The high cost of housing in Urban areas in the major cities across the U.S. has seen the number of homeless people rise sharply, especially in places like California, Washington, and New York. The situation has been associated with the rising cost of housing, institutionalized inequality, and the constant income rate and the business cycle, which impact the ability of people to pay for housing. According to Quigley and Raphael (2004), the rising cost of housing has been a significant cause of poverty and homelessness across the metropolitan regions in the U.S. The housing and urban planning data indicate a rise in housing prices between 1995 to 2002 in places like San Francisco by 65%, Boston by 62%, San Diego by 54 and Denver by 49%. Since then, housing prices have almost tripled, which has been associated with inflation and housing scarcity in these cities due to the increase in population.

California has been identified as among the state with the most homeless people. In large cities in California, such as Los Angeles, the tax policy change has increased the cost of living. In addition, the high cost of living associated with housing costs has forced more families into the streets like no other city in the U.S. As mentioned above, California is a rich state but has rising poverty, and one of the signs of poverty is the level of homelessness (Grusky et al.,2015). Homelessness in California mirrors American society, with most people today unable to afford proper housing in major cities such as New York and Los Angeles. Consequently, people are migrating from major cities, trying to find a living in smaller cities where they can afford a quality of life.

The housing aspects of poverty is a complex because it is both a causative and a consequence of poverty. For homeless families, low income contributes to the inability to afford a home, which is seen as poverty and causes the family to lack shelter. Consequently, kids born into homeless families see homelessness as a result of poverty. The complex correlation between poverty and housing creates a complex cycle of hardships. As a result, housing has become a policy playground, with the government aiming to lower the cost of housing. Housing prices, however, continue to rise each decade with the rising inflation rates.

Despite the first-world status of the U.S., the country’s poverty level remains high compared to other first-world countries, highlighted by the income and housing problems. Income is a crucial determinant of poverty status as a majority of minimum wage household fall in the low-income class while a minority fall in the middle and high-class earners. Consequently, about a tenth of the American population’s income needs to meet their needs resulting in high poverty rates impacting life quality. Homelessness in urban areas indicates the rising poverty level and the gap between the rich and the poor. The rising housing prices have contributed to people living on the streets and in their cars, living on food aid which constantly impacts the quality of life. However, as income and housing continuously remain a problem in the U.S., poverty aspects are highly interconnected. It is impossible to highlight two causes and effects as the poverty cycle creates a circular flow of highly integrated aspects ranging from income, dependency, needs, business cycles, health, housing, inequality, and education, among many other aspects.

Quigley, J. M., & Raphael, S. (2004). Is housing unaffordable? Why isn’t it more affordable?  Journal of Economic Perspectives ,  18 (1), 191–214.

Grusky, D., CoDDou, M., CuMBErworth, E., Fisher, J., Furuta, J., Hill, J., … & Wright, R. (2015). Why is there so much poverty in California? The causes of California’s sky-high poverty and the evidence behind the equal opportunity plan for reducing It.

Fontenot, K., Semega, J., & Kollar, M. (2018). Income and poverty in the United States: 2017.  Washington DC: U.S. Government Printing Office .

Percheski, C. (2019). Income and Earnings.  Age ,  20 (25), 30.

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Essay on Poverty | Poverty Essay for Students and Children in English

February 14, 2024 by Prasanna

Essay on Poverty: As commented by Mahatma Gandhi decades back, ‘Poverty is the worst form of violence’. During recent years, Poverty is the biggest hurdle in an entire way towards India’s development. Poverty is a worse condition in which the person entirely fails to fulfil his/her physiological needs and the need for food and luxurious life. Poverty-stricken people can also have the best facility for fighting against the diseases and get balanced nutrition and proper medical assistance whenever required.

Even since the immemorial times, poverty has been a more comprehensive concerning issue, and it intensified more in India under the British rule, reaching a peak in the 1920s. The essay on poverty contains various facts and details that are important for understanding the students about the concerned agenda.

You can also find more  Essay Writing  articles on events, persons, sports, technology and many more.

Long and Short Essays on Poverty for Students and Kids in English

We provide children and students with essay samples on a long essay of 500 words and a short essay of 150 words on the topic “Poverty” for reference.

Short Essay on Poverty 150 Words in English

Short Essay on Poverty is usually given to classes 1, 2, 3, 4, 5, and 6.

Poverty is the lack of food, clothing, proper shelter, medicine, education, and other essential elements for better survival in the World. It is also the assurance of having equal human rights. Poverty is a worse situation that forces people to starve without proper shelter, clothing, ethical rights, and educational assistance.

Several reasons lead to poverty in any country. Even though there are several solutions to avoid the poverty attack, the lack of proper unity among a country’s residents for following the answers leads to the issues. This is another primary reason why the poverty rate is rapidly rising with each passing day.

The spread of the epidemic diseases also leads to the rising rate of poverty in any country. This is because most poor people cannot maintain their health status and get appropriate medical aid in such situations. Poverty is the adverse situation that makes the people unable to go to the service assurers for their needs, and go even more towards the diseases and illness due to unclean and unhygienic food and water and living in unhealthy situations.

It is the effect that makes people powerless and risks their freedom. This is because a poverty-stricken person might enter the vicious circle of slavery. But, this is an inescapable issue, and thus the person who is stuck in it has to live with it. Poverty is an adverse human situation that brings grief, pain, and despair in individuals’ lives. It is the lack of money and necessities for living luxuriously and adequately with access to all the essential elements. This is an adverse situation that might also make a child unable to enter the school and study during childhood, and this is also the reason behind worse social issues like child labour and slavery.

Poverty means the shortage of money for arranging even the perfect two times meal and have a healthy nutritious diet. Such people do not have enough money to afford the essentials for living a perfect and healthy human life. Thus, there are several ways available that one can use for defining poverty.

Poverty is the most common social issue in the underdeveloped or developing nations, like India and Africa. These nations have a higher poverty rate than the developed countries across the World. This is because a significant segment of people in these countries do not have access to better-earning opportunities and income and cannot meet the basic needs of life. A more substantial segment of these nations’ population is illiterate, stays hungry, and lives without a home and proper clothes.

Poverty is also the primary reason that hinders the country’s economic, social, and political growth. Poor people do not have enough money to satisfy all their needs and lives the entire life without access to many facilities, including even a two-day meal and clean drinking water. Poor people are thus forced to enter into wrong paths and do crimes for earning their living. There are several reasons for poverty in a nation, and for India, it was mainly the British rule, slavery conditions, and rising epidemic illness rates. Children from low-income families do not even get access to education and facility to have proper schooling and medical aids. Many of them are not even aware of the modern advancements that the comparatively more prosperous people have access to.

Long Essay on Poverty 500 Words in English

Long Essay on Poverty is usually given to classes 7, 8, 9, and 10.

Poverty is a worse situation that represents poor quality of life, rising illiteracy and malnutrition, lack of basic and essential elements of living, lower development of the human resource, and others. This is a more significant challenge, significantly hindering the growth of the developing nations, like India. Poverty is the phenomenon in which a segment of society does not have access to meeting the basic needs of life and have a healthier life. The experts also observe that poverty level is still declining since India’s last five years (reaching 26.1% in 1999-2000 to 35.97% in 1993-1994)

Poverty in India has also declined at the state level rapidly. In Madhya Pradesh, the poverty rate fell from 43.42% to 37.43%. Not only this, but in other states like UP, and Orissa too, the poverty rate has gone downwards. However, even though there is a downfall in the country’s poverty rate, to eradicate it from the routes, we must make use of some effective programs with combined efforts of Government. It is necessary for the Government of the country to formulate effective strategies for developing a socially poor sector of the society using the critical components like population control measures, and primary education made compulsory, employment generation, and others.

Several issues arise due to a higher poverty rate. Illiteracy increases with poverty as people cannot access proper education and get learning resources due to lack of money. Poverty also leads to rising malnutrition as poor people are unable to afford a proper two-time meal and get a nutritious diet to stay healthy. In turn, this leads to increasing illness and diseases that also remains uncured because of lack of medical aid. Due to poverty, families have lower income that is unable to meet their needs, and thus the children are also forced into child labour to meet the demands.

Unemployment is a significant cause of poverty as it leads to a shortage of money and affects the daily lives of the people. It also forces people to work against their will in harmful conditions. Poverty leads to social stress due to inequality in income between the rich and the poor. This also creates a worse issue for people as they have to stay out of their homes on roadways, sidewalks, open spaces, and without any shelter. Poverty is a worse issue that affects people from all the demographics and age group in adverse ways, causing severe losses and stress for them. This is a concerning factor, and only the Government of a nation can come up with practical ways to reduce the poverty rate.

Poverty is an adverse condition in which the people are left without shelter in a depriving state for basic necessities like food, water, clothes, etc. India has a higher poverty rate. A more significant segment of the entire population cannot afford even the two-time meals properly, have to sleep on the roadsides, wear dirty clothes, drink unclean water, and live in unhealthy and unhygienic conditions. Poor people lack access to proper and healthy nutrition, medical aid, educational assistance, and other essential services to better their lives and the lives of their children.

In urban India, poverty is rapidly rising due to the rise in urban population as people from many rural areas are shifting towards the urban ones. As people move in search of employment and a better lifestyle, but lack of employment opportunities forces them into a financially unstable situation where sometimes they are even forced to work under harmful and unpleasing conditions. In India, more than eight crore people’s income is still lower than the poverty line, and 4.5 crore urban people stand at the verge of the poverty level. A more significant number of urban people stays in the slums, and most of them are illiterates.

Despite many initiatives of Government and NGOs, there is still no satisfying effect regarding the lowering of the poverty level. Several reasons lead to poverty like one of India’s significant cause for poverty is the rising population, poor agriculture, lack of employment opportunities, corruption, a wider gap between poor and rich, epidemic diseases, and many more. A more significant per cent of the Indian population depends on the agriculture sector, which is getting poor rapidly. People also face a shortage of food due to poor agriculture and unemployment.

Furthermore, as there is no limitation on having children after marriage, the rising population also leads to poverty. There are more stomachs to feed, and the income cannot satisfy the same for many families. Furthermore, as the basic facilities are not available adequately, many people get poverty-stricken. With this, the poor become extra poor and richer ones get extra rich, widening the gap between both the segments.

Poverty leads to severe impacts ion the entire society and adversely affects the lives of the people. Poverty leads to illiteracy, lack of proper diet and nutrition, child labour, poor lifestyle and lousy sanitization, and other adverse effects. People are often unable even to get a proper two-time meal and clean drinking water, and due to lack of a healthy diet, the children are mostly malnutrition. Children are unable to study and get appropriate education, and thus the cycle of poverty continues in the families for generations. This eventually hinders the overall development of the nation.

For controlling poverty, there are specific measures that we can take to solve the issue for ensuring a better lifestyle for all the people staying on the planet. There are specific effective measures like farmers must receive proper and necessary access to facilities for better agriculture. The illiterate people must get adequate access to education and training to understand several aspects of a better life. People must be given training for family planning and sex education for population control. Every child must go to school, and there must also be new employment opportunities for all type of people.

Poverty Essay Conclusion

Poverty is not an individual-level problem, but it is a broader issue for the entire nation and the planet. This is a significant threat to human resource development and must be taken care of on a priority basis. People must consider essential and effective measures to control the poverty rate. We must combined work to eradicate all the loopholes in the government systems and encourage the organizations which work to handle the poverty crisis.

The article contains an essay on poverty to satisfy various students’ educational and academic requirements from different classes. This is a concerning factor. The students must understand the issue sufficiently to eradicate the problem and ensure a better and developed lifestyle for all the people Worldwide.

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More Money Can’t Solve Poverty

• Daily Economy
• Free Markets

I first came to economics out of a concern for poverty. I had been attracted to classical liberalism for its uncompromising defense of the rights and dignity of individuals, along with a healthy skepticism about power. Everything made sense to me: constitutional constraints, limited government, rule of law, political and economic freedom. One thing held me back: what about the poor? Could civil society provide sufficient relief? Might welfare be an exception, a collective action failure to be remedied by a limited state? 

I still remember discovering a quotation, drawn from a 1988 paper by economist Robert Lucas . It was one of a half dozen or so quotations that seems to define one’s own life better than one could ever do oneself: “Is there some action a government of India could take that would lead the Indian economy to grow like Indonesia’s or Egypt’s? If so, what, exactly? If not, what is it about the ‘nature of India’ that makes it so? The consequences for human welfare involved in questions like these are simply staggering. Once one starts to think about them, it is hard to think about anything else.”

It turns out that the story is as simple as it is beautiful; it is the story that Angus Deaton has dubbed “ the great escape ” from poverty. It is a story of ideas unleashing markets and technology (what Deirdre McCloskey has dubbed “ the bourgeois virtues “). Poverty was the natural condition of humanity for 99.9 percent of its 200,000-year existence. Sometime around 200 years ago, some people in some countries started to escape. Gradually, more people in those countries, and people in more countries, escaped too. The late Hans Rosling offers an enthusiastic, almost giddy, visualization of the story.

When faced with bunk whining that capitalism is evil, because it didn’t include everybody immediately, I share Martin Luther King’s 1963 “I Have a Dream” speech:

In a sense we have come to our nation’s capital to cash a check. When the architects of our republic wrote the magnificent words of the Constitution and the Declaration of Independence, they were signing a promissory note to which every American was to fall heir. This note was a promise that all men — yes, Black men as well as white men — would be guaranteed the unalienable rights of life, liberty and the pursuit of happiness. It is obvious today that America has defaulted on this promissory note insofar as her citizens of color are concerned. Instead of honoring this sacred obligation, America has given the Negro people a bad check which has come back marked insufficient funds. But we refuse to believe that the bank of justice is bankrupt. We refuse to believe that there are insufficient funds in the great vaults of opportunity of this nation. And so we’ve come to cash this check — a check that will give us upon demand the riches of freedom and the security of justice.

After 199,800 years of poverty, capitalism — free markets, classical liberalism, the Enlightenment project, call it what you will — started lifting people out of poverty. It has not fully succeeded. Not yet. After all, it has not been given much time. And it faces skeptics and enemies everywhere. Freedom House reports that we are in the 18 th year of democratic decline around the world. A decade of growth in economic freedom was erased in 2020, as governments around the world addressed the pandemic with spending and regulation (which were supposed to be temporary). Anti-globalization forces on the left and right are threatening to push back 70 years of progress since World War II, the increasing “ extent of the market ” that lifted billions out of poverty. In 1820, almost 100 percent of the world’s one billion people were living in extreme poverty. In 1950, it was about 75 percent of the world’s two billion people. Today, it’s less than 10 percent of the world’s seven billion. Three cheers for markets! 

The Poor with Us Always

Despite this stunning progress, poverty remains. Why? Matthew Desmond, a sociologist at Princeton University, thoroughly examines the question. The book has serious flaws, but it offers a wake-up call.

Desmond reminds us that one in nine Americans is poor. He walks us through poverty and its daily assaults on stability, growth, health, and morale. It is expensive to be poor: fines accumulate on unpaid vehicle registrations; jobs are lost from unaffordable car repairs; mass incarceration kills income; the unbanked are saddled with high-interest payday loans; the poor are excluded from affluent neighborhoods, and stuck in a cycle of eviction and neglected housing; because public schools are financed by local property taxes, the poorest don’t get a good basic education; health insurance is tied to full-time work, so preventive care is often neglected, and medical catastrophe can lead to bankruptcy. 

To be sure, governments at all levels are spending — a lot — on poverty. The US welfare state (as a percentage of GDP) is the second biggest in the world, after France. But the welfare state is a sieve, and welfare programs are poorly designed and cumbersome.

Desmond is probably exaggerating the problem; it’s unclear whether he’s intentionally playing with statistics to bolster his case, or if — as a sociologist — he is more concerned with pathos than logos . For example, he pooh-poohs the drop in the price of almost everything, because “[y]ou can’t eat a cell phone.” Yet food expenditures fell from one third of income to 9 percent in the last century.

Unfortunately, the book suffers from two fatal flaws. First, Desmond does not understand markets, and sees the world as a zero-sum game; second, he does not understand the unintended consequences of intervention.

Desmond asserts that poverty persists because “we” — the middle class and the wealthy — benefit from it. Consumers want cheap stuff and corporations want high profits, so wages are kept low. Unions are repressed by greedy corporations. The gig economy leaves workers unprotected, but it’s convenient and cheap. We don’t want poor people living next to us, so we keep them out with zoning laws. Corporations and “the wealthy” have rigged the system to avoid paying their “fair share” of taxes. The wealth “hoarded” by the wealthiest excludes the poorest and serves as an excuse not to implement real change. Et caetera . In sum, “Defenders of the status quo, this pro-segregationist propertied class, have shown themselves to be willing to do the tedious work of defending the wall.” “Our abundance causes others’ misery.” Well.

The problem is reality: markets are a not a zero-sum game, but a positive-sum game. Jean-Baptiste Say and Henry Ford famously saw the link between worker and consumer. The real problem is that the poor are excluded from markets, mostly by the same well-intentioned government programs that Desmond champions. 

Desmond would solve poverty in America with “ambitious interventions” — “we should go big.” But he ends up proposing more of the same government interventions that cause poverty in the first place (and that he himself admits are inefficiently administered). Lest I appear to be a market radical or a bourgeois apologist for my comfortable life and the taxes I refuse to pay to help the poor, let’s look at some examples.

Unions increase wages for their members — at the expense of non-members. They are a drag on productivity and growth, leading to a less dynamic economy and lower employment. Sustainable wage increases come from productivity gains and human capital accumulation, not legalized bullying. Alas, teachers’ unions have completely deflated high school education; federal intervention is gutting higher education. The poor need fewer unions, more vibrant labor markets, and better education.

Inflation-adjusted prices have dropped significantly over the past fifty years — with the notable exception of three sectors: healthcare, education, and housing. Desmond laments this. But he does not recognize that these are three of the most subsidized and regulated sectors of the economy. Subsidies increase demand, and thus prices. Regulation decreases supply, increasing prices. Clearly, there is a problem. Clearly, even more government isn’t the solution. Consider that — before Obamacare — almost half of healthcare was already paid for by government funds. Consider the higher education bubble, where federal intervention has driven up prices and driven down quality.

Desmond rightly laments the injustice of exclusionary zoning regulations. Unfortunately, he also prescribes inclusionary zoning (forcing builders to include low-income housing in any new project). The unintended consequences should not be hard to predict. And let us not forget that massive government intervention to increase home ownership among the poor has already been tried. Pre-2007 US housing policy — the deadly cocktail of Community Reinvestment Act, lower lending standards and moral hazard through Freddie Mac and Fannie Mae, and federal encouragement of subprime loans – did indeed briefly increase home ownership among the poorest Americans. They were also the ones who suffered the most when the inevitable crash followed the boom.

Payday loans are ugly, but they are often the only available option. Regulating them would make things worse, killing credit or driving the most vulnerable into black markets. Instead of banning them, we should make them irrelevant. Alas, federal and state regulations limit banking competition, driving up prices. The Durbin Amendment to the Dodd-Frank Act of 2010 capped debit card interchange fees. In the spirit of Frédéric Bastiat , what is ‘seen’ is a policy to help the poor. What is not seen is the increase by a whopping million of unbanked Americans , who were forced out when banks recuperated their losses by increasing fees on other services. Banks were able to do so because Dodd-Frank ended up increasing US banking concentration (as I demonstrate in a working paper with my AIER colleague Michael Makovi).

The COVID rescue packages that Desmond would like to make permanent may have worked in the short run. But they cost the federal government $5 trillion it didn’t have. So the Federal Reserve monetized the debt, driving inflation to 40-year highs. While inflation is now tamed, prices remain 20 percent higher than they were four years ago — with disproportionate effects on the poor, of course.

Although he isn’t an economist, Desmond did his homework on minimum wage. He gleefully concludes that George Stigler’s seminal work on the disemployment effects of minimum wages — along with pretty much all of microeconomic theory — was debunked by the famous 1994 Card and Krueger paper. But the arguments in that paper are, at best, “tiny pulls in the intellectual tug-of-war to accurately predict the outcome of a minimum wage policy change. And there are more… and stronger, tugs on the side that says minimum wage increases hurt employment.” Back to Bastiat, minimum wages are good for the workers who can secure them and bad for the workers who are priced out of the labor market — and especially those who are permanently excluded from their first job, with disastrous, lifelong consequences. Witness understaffed European stores and the proliferation of kiosks to replace expensive fast-food workers. As Henry Hazlitt explained, “we cannot make a man worth a given amount by making it illegal for anyone to offer him less. We merely deprive him of the right to earn the amount that his abilities and opportunities would permit him to earn, while we deprive the community of the moderate services he is capable of rendering.”

The failure of government anti-poverty programs is captured in a single fact that Desmond completely overlooks. The US poverty rate has indeed dropped a bit since 1964 , when President Johnson declared a War on Poverty, and started a six-decade spending spree. But the real story happens before 1964. As markets were liberated to work their magic — after the twin assaults of the New Deal and the wartime economy — US poverty dropped dramatically. From a high of almost 35 percent after World War Two, the poverty rate had already fallen to 19 percent in 1964. It continued its downward trend over the next few years, then has stagnated between 10 percent and 15 percent ever since.

Getting in the Way of Growth

Markets are the world’s greatest anti-poverty program. Alas, the government keeps bumbling in the way. Part of this stems from the unintended consequences of good intentions — and part of this stems from cronyism. Desmond rightly points out that the top 20 percent of earners receive $35,000 in annual government benefits, while the bottom 20 percent receive only $26,000. He is playing a bit with the numbers, as he includes not just direct transfers, but also tax deductions, which the middle class is better at capturing . But he has a point; everybody has a snout in the trough of wealth redistribution, as political activity is increasingly rewarded over economic activity. As I have written in this space , it “is no coincidence that three of the five richest counties in the US (and nine of the top 20) are located in the Washington, DC area — an area with little native industry, beyond spewing regulatory externalities.”

The fundamental problem is not a lack of funding to address poverty, as Desmond would have us believe, but government failure. Mass incarceration, qualified immunity of police, and overcriminalization co-exist with failure to provide security and rule of law in poorer neighborhoods. State interventions have rendered high school education largely useless and college too expensive. Labor laws, minimum wages, occupational licensing, and other regulations with regressive effects deny workers the opportunity earn a living and work their way out of poverty. Zoning laws and a thousand subsidies and regulations drive up housing prices, keeping the poor out of thriving neighborhoods, and out of good schools that are linked to real estate. The welfare state has crowded out a once-vibrant and effective civil society (Desmond is surprisingly silent on civil society and private charity, as he is so enamored with state solutions).

Art Thou for Us, or For Our Adversaries?

Given the book’s tragic flaws, Desmond’s emotionalism, accusations of complicity in exploitation of the poor, and with-me-or-against-me fallacy, end up being grating, rather than inspiring. Still, he is describing a real problem, and unintentionally making the case for markets.

It’s not always clear which bad policies come from the unintended consequences of good intentions, and which are naked attempts at rent-seeking. But it doesn’t matter. It’s time to stop rearranging the deck chairs on the Titanic. The poor deserve nothing less than the opportunity to participate in the great escape.

Nikolai G. Wenzel

Nikolai G. Wenzel is Professor of Economics at Universidad de las Hespérides and Associate Research Faculty Member of the American Institute for Economic Research.  He is a research fellow of the Institut Economique Molinari (Paris, France) and a member of the Mont Pelerin Society.

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