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Consequences of inequality & poverty - Coggle Diagram
Consequences of inequality & poverty
for economic growth
large gaps between income groups provide incentives
to work harder
improve their education and skills
more equality means a smaller gap but less incentives
high levels of investment are needed for the economy to grow
inequality harms economic growth
fewer opportunities for lower income groups -> vicious cycle
children from lower background lack opportunities
leads to lower productivity levels
social & political instability is often associated with high levels of poverty
inequality is damaging for everyone, not just the poor
for living standards & social stability
resentment and hostility may be high where people are living in extremely disadvantaged circumstances
leads to social tension & increased criminal behaviour
increased gang-related activities
residents may feel unsafe
law enforcements may not be able to deal with the dangers
young people feel discouraged as they feel like they have no job prospects & legit ways to earn a living
neighbourhoods and areas of cities may become identified by their income groups
may be self-perpetuating
government-subsidised areas will be concentrated with low income earners
low income areas
less likely to have goods schools & attract good teachers
education prospects suffer
poor infrastructure & facilities
limits opportunities for residents
people living in relative poverty are unlikely to support the political and democratic process
give rise to unstable social & political climate & tension between low income earners & people who govern
people living in poverty must make hard choices about ways to use their limited income
fuel
education
food
transportation