Causes of Poverty 247WallSt.com-247WS-495549-slum-alabama

Marketplace factors

Ethnicity/Gender

Health Factors

Poor Education

Low income 4x more likely to drop out of high school

Gap in SAT scores - difference is 43% between wealthy and poor students

U.S. poverty rate - higher than other wealthy nations

Disadvantages before birth - drug use, poor nutrition, violence, stress

Poverty level - family of four at $25,700

Low wages/Income - minimum wage jobs, seniors at fixed income, unemployment

Homelessness - affects 550,000 and 1.4 billion spend some time at shelter

Food insecurity -11.1% of US households have been food insecure

Deep poverty - 5.3% of the population (17.3 million people) live with incomes below 50% of their poverty thresholds


Native Americans - 25.4%

Blacks - 20.8%

Hispanics - 17.6%

Whites - 10.1%

Asians - 10.1%

Uncontrollable factors that can lead to poverty - being a woman, African American, Hispanic, a child, or a disabled

Poor people - 5X more likely to be in poor health

Landmark study by Raj Chetty - life increase for the top 5% percent of the income distribution; no gains for bottom 5%

Health poverty trap - Poor health leads to lower income

Health insurance - Less likely to have health insurance or access to drugs and health care

Age and Family Structure

Rural areas - 16.7 % of rural population is poor, compared with 13% the urban population

Disabled person - Higher risk of becoming poor,

Children under age of five - 20.2% poverty rate

Single mothers - 44.3% poverty rate; 5X more likely to have an unplanned pregnancy

Senior Citizens - 14.1% poverty rate

Higher education = higher income; High school graduate earns $8,000 more than high school dropout

children-in-poverty

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Diseases - higher rates of heart disease, diabetes, stroke, and other chronic conditions

Pattern repeats - unstable and stressful early childhood environment leads to poor academic readiness