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Causes of Poverty - Coggle Diagram
Causes of Poverty
Conflict and Instability
War disrupts food systems by undermining food production, causing rapid inflation of food prices, and preventing people from earning money to buy food (Global Citizen 2022).
Displaces families from their homes. Individuals become refugees and have to live in other countries where they may not speak the same language and will have to struggle to find work.
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War destroys key infrastructure that supports daily life, from water systems to energy centers to hospitals (Global Citizen 2022).
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There are 27 active conflicts around the world, according to the Council on Foreign Relations.
Some of these conflicts have been going on for decades, others for only a few years (Global Citizen 2022).
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Social Factors
Economic Inequality
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The poorest fifth of America enjoys only 3.8% of the nation’s income, while the richest fifth enjoys 53.2% (Pressbooks 2016).
Gender Inequality
Across the world, women are in the lowest-paid work. Globally, they earn 24 percent less than men
75 percent of women in developing regions are in the informal economy - where they are less likely to have employment contracts, legal rights or social protection, and are often not paid enough to escape poverty
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Teen Pregnancy
Teenage mothers are more likely to live in poverty and depend on public assistance (NCSL, 2018)
Children born to teen parents are more likely to have lower school achievement, enter the child welfare and correctional systems, drop out of high school and become teen parents themselves, compared to children born to older parents (NCSL, 2018).
A teen birth can disrupt young people’s educational and career goals, affecting earning potential and future family finances (NCSL 2018).
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Drug Addiction
Poverty can lead someone to use drugs, but drug use can also lead someone into poverty. Many members of the middle class and upper class have slipped into poverty as a result of drug addiction (NCCAA 2020)
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Drug addiction can cause individuals to spend too much of their income on drugs rather than housing and other necessities.
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Racial Inequality
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Black households have far less access to tax-advantaged forms of savings, due in part to a long history of employment discrimination and other discriminatory practices (American Progress 2022).
Persistent labor market discrimination and segregation force blacks into fewer and less advantageous employment opportunities than their white counterparts. Thus, African Americans have less access to stable jobs, good wages, and retirement benefits at work (American Progress 2022).
Overpopulation
The world’s poorest countries tend to have the largest family sizes and fertility rates (Poverty Matters 2023).
High population growth traps individuals, communities and even entire countries in poverty (Poverty Matters 2023)
Environmental Factors
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Climate Change
The increased frequency and intensity of extreme weather events like hurricanes, wildfires and droughts threaten lives in these front-line communities, driving people from their homes and jeopardizing food sources and livelihoods (Mercy Corps 2022).
Floods and droughts brought on by climate change make it harder to produce food. As a result, the price of food increases, and access becomes more and more limited, putting many at higher risk of hunger (Mercy Corps 2022).
Lack of access to food
40 million people, nearly 1 in 8, live in households with limited access to adequate food during the year due to lack of money and other resources (Feeding America).
Natural Disasters
A new World Bank report finds the impact of extreme weather on poverty is more devastating than previously understood, responsible for annual consumption losses of $520 billion and pushing 26 million people into poverty every year (GFDRR 2022).
Poor people are more likely to reside in fragile homes in disaster-prone locations and have occupations in industries like farming and agriculture that are severely vulnerable to catastrophic weather disasters (GFDRR 2022).
Additionally, they get a lot less recovery assistance from the government and the society. As a result, the effects of a storm, flood, drought, or earthquake are felt by the poor more than twice as much as they are by everyone else (GFDRR 2022).
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COVID-19 Pandemic
About 97 million more people are living on less than $1.90 a day because of the pandemic, increasing the global poverty rate from 7.8 to 9.1 percent (World Bank Blogs, 2021).
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Lack of Education
Due to their early entry into the workforce, a large number of disadvantaged children are unable to attend school. This may be because their parents are unable to pay the children's tuition or because they themselves depend on their income (Padiyar, 2022).
Lack of education can result in criminal behavior and imprisonment, which makes it difficult for people to become independent even after being released from jail or prison (Padiyar, 2022).
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