Thursday, 16 June 2011

Poverty and Inequality Table

In this post I will examine the causes and causes of inequality and poverty in developed and developing countries.

Developed Countries
Developing Countries
Causes of Poverty
  • Debt
  • Poverty trap
  • Lack of government support
  • Decline in manufacturing sector - structural issues
  • Lack of availability of suitable loans
  • Subsistence farming
  • Corrupt government
  • Poor healthcare and infrastructure
  • Lack of technological development
Causes of Inequality
  • Difference in wages and salaries - skills, discrimination and location
  • Unemployment and retirement
  • Ownership of financial assets
  • Tax systems
  • Inheritance 
  • Overcrowding in cities - urban sprawl
  • Corruption
  • NGOs which specifically target individual groups such as women and children
  • Exploitation
  • Access to credit institutions
Consequences of Poverty
  • Crime
  • Constraint on growth - C
  • Poor standards of living
  • Unable to receive a decent education
  • Savings gap issues
  • Subsistence farming
  • Constraint on growth
  • Poor health and standards of living
Consequences of Inequality
  • Constraints of growth - Capital flight and low marginal propensity to save (MPS)
  • Increase in M - constraint on growth
  • Social consequences like anti social behavior
  • Crime
  • Constraint on growth 
  • Exploitation
  • Social issues like rich people having to own helipads
  • Crime

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