Overview of the Issue Presented in the News Article - Essay Example

? Article Analysis Overview of the Issue Presented in the News Article The article published by The Economist on 10th November’ is about povertyand its affects upon the poor in the United States of America (US). In accordance with the news article, it can be stated that the poor in the US are required to be provided with additional care as well as help. The article brings out two incidents with regard to poverty in the US. The first incident is related to Emma Hamilton who works in a factory as a loader in Sumter, California. In the year 2008, following seven years of services, Emma Hamilton met with an accident where she mangled her hand between two rollers. After this incident, she was incapable of performing any work. In the year 2011, after the incident she lost her house. In relation to this, she and her 20-year-old son were left homeless. During the daytime, they collected metal cans for earning their living and at night they used to sleep in car parking lot of grocery stores (The Economist Newspaper Limited, 2012). One day Ms. Hamilton had unbearable pain in her leg and due to this incident she met with Patricia Dunham, who is an assistant in Excelsior Medical Clinic. This is related to the second incident of poverty prevailing in the US as Ms. Dunham stated that during the daytime she used to work in the clinic while at night she used to work in a counter of a fast-food restaurant. In the family of Ms. Dunham there are three children and her husband is unemployed for having a prison record. Moreover, after periodic seizures her husband was totally disabled. She earns ample income from work but it was not sufficient to meet the requirement of the family (The Economist Newspaper Limited, 2012). These are the incidents which depict about poverty in the US. In the year 2010, 10.5 million Americans were determined to be poor. Moreover, poor children are observed to be in the homes of single-parents in comparison to children who live with married couple. In the US, it is observed that the government is reluctant in providing cash transfer to the poverty stricken people as compared to other rich countries. There is also an aversion in the political background in relation to providing additional benefits through rewards but supports are offered with the assistance of paternalistic as well as progressive tax code. The facility of child tax credit facilitates families to have certain amount of credit for all dependent children in against federal income tax. Moreover, the article describes that in the US, there are various sorts of programs which are initiated with the objective of assisting the poor. These programs include healthcare facilities as well as tax benefits for facilitating the people who are in need. These are the factors which are involved in the article with regard to poverty in the US (The Economist Newspaper Limited, 2012). Model or Economic Theory of Poverty The model or economic theory which is related with the issue i.e. poverty as depicted in the news article is as follows: Neo-classical Theory The model or economic theory of poverty which is related with the issue i.e. poverty in the news article is the neoclassical theory. The neoclassical theory states that income is distributed in accordance with the hard work as well as skills which are devoted by individuals. In this respect, the people who are poor are considered to be lazy as well as to be lacking in terms of competencies to perform their activities in an efficient manner. Moreover, in accordance with this theory, wage structure is also determined to be a major factor for poverty. The wage structures of laborers are not sufficient in order to bear up the cost of living of the whole family. Moreover, the competencies of laborers assist in determining the wages to be offered. The laborers are paid according to their skills as well as abilities. Thus, this theory is also based on the concept of marginal productivity conceptions. The workers are required to devote significant time in work with the intention of acquiring enough financial resources for supporting their families as well as meeting all their requirements in an effective manner (Mink & O’Connor, 2004). The Facets that the Economic Theory States and Predicts About Poverty The neo-classical economic theory states as well as predicts the different causes of poverty which include the notion that individuals seek to improve their respective economic conditions without any consideration for other individuals. This signifies that individuals invest with the motive of improving their respective well-being. The poor people in this regard do not possess enough incentives for improving their financial positions. Moreover, the theory also states that individuals are required to be proficient as well as skillful in order to earn their own cost of living for themselves as well as for their families (Mount Holyoke College, 2013). Individual Deficiencies Individual deficiency is vast as well as multifaceted in its perspectives. It signifies the causes which are responsible for the poverty situation. It states that the major cause of poverty is that individuals pursue activities with the objective of improving their respective conditions as well as well-being. The values of individualism in the US denote that individuals can prosper in their life by hard work as well as by possessing requisite skills in order to perform their activities in an appropriate manner. Moreover, individuals should be motivated as well as determined with the intention to succeed in their life. In this respect, it signifies that individuals should be proficient as well as skillful in order to acquire enough financial support for meeting the requirements as well as necessities of their families (Bradshaw, 2006). Cultural Belief Systems The cultural belief systems are the causes of poverty with respect to the culture of poverty. In accordance with cultural belief systems, poverty is caused due to transmission of beliefs as well as values along with skills from generation to generation which are generated socially. Individuals who are poverty stricken are determined as a victim of this dysfunctional subculture. Culture is considered as a socially generated aspect as well as it reflects the ways through which individuals interact in the society and community. In this context, the poor people share certain beliefs as well as values along with norms which differentiate their behavior from the cultural aspects of main societies (Bradshaw, 2006). Geographical Disparities or Discriminations The geographical disparities state that people as well as culture along with institutions are observed to lack resources and opportunities which limit the income and well-being in different areas or segments. Moreover, the disparities among the different geographical areas or segments are determined to be a cause of lack of economic as well as social factors (Bradshaw, 2006). It states that race is determined as one of the major factors for predicting poverty. Moreover, discrimination of people in accordance with race and religion are considered to be hampering the growth as well as prosperity of poor people. In this regard, discrimination affects individuals as they are not able to acquire every opportunity which limits their income, education, health as well as housing opportunities. The economic theories also state that poverty is also predicted on the ground of geographical segments (Bradshaw, 2006). Cumulative and Cyclical Interdependencies The cumulative and cyclical interdependencies signify that individuals as well as communities are caught in the cycle of opportunities as well as problems or issues. In this regard, at times, when problems dominate over opportunities, it is observed that problems accumulate in excess of opportunities (Bradshaw, 2006). The neo-classical theory states as well as predicts the above mentioned factors in relation to the issue which is identified in the news article. The above mentioned factors signify that these are the major causes of poverty in the US. In this regard, these factors are required to be considered with utmost importance in order to minimize the extent of poverty in the US. In accordance with the article, it has been identified that poverty is recognized from two aspects which include earning insufficient income in order to effectively bear up the cost of living and earning sufficient income but unable to meet the requirements of the family. The above mentioned factors under the neoclassical theory are determined to be the major reasons for these issues in the article with regard to poverty. Alignment of Economic Theory with Poverty The issue which has been identified from the article is related to poverty. Economic theory is related to poverty with the following mentioned factors: Economic, Political and Social Distortions The economic, social and political system is considered to be a major cause for poverty as this system limits resources as well as opportunities for individuals in order to acquire necessary income and ascertain their well-being. The economic system is structured in such a manner which hampers the poor people with regard to competency level they possess. In this respect, the wages which are paid to workers are not sufficient in order to support their families effectively. Wages is determined as one of the major economic factors for poverty (Bradshaw, 2006). The political system is also considered as another important factor for the raise in the level for poverty in the developed as well as developing countries. It has been observed that the poor people are unable to participate in the political discussions as politics in mainly concerned with wealth as well as power. In this regard, it is determined that the interests of the poor people are vulnerable in an additional manner and are also excluded in various prospects. Moreover, the poor people are discriminated on racial backgrounds which restrict them from having any influence in the political system. It is in this concern that the poor people are provided with limited economic benefits as well as justice (Bradshaw, 2006). The social system is also considered as a factor affecting the poor people with respect to race, religion as well as gender disability. These factors are responsible for providing limited opportunities as well as resources to poor people thus limiting them from having efficient benefits as well as acquiring enough economic well-being (Bradshaw, 2006). The above mentioned factors denote that economic theories are related to poverty. Moreover, these factors are determined to be the major causes with respect to poverty. These factors should be considered for eliminating the level of poverty in the US. Therefore, it can be observed that economic theories such as neoclassical theory are related to poverty. In this regard, the government of the US is required to implement certain specific policies with the objective of bestowing better support to poor people. Furthermore, proper economic factors should be devised for providing better assistance to poor people. References Bradshaw, T. K. (2006). Theories of poverty and anti-poverty programs in community development. Retrieved from http://www.rupri.org/Forms/WP06-05.pdf Mink, G. & O’Connor, A. (2004). Poverty in the United States: A - K., Volume 1. California: ABC-CLIO. Mount Holyoke College. (2013). Neoclassical economic theory. Retrieved from https://www.mtholyoke.edu/courses/sgabriel/neoclassical_theory.htm The Economist Newspaper Limited. (2012). America’s poor were little mentioned in Barack Obama’s re-election campaign. They deserve better. Retrieved from http://www.economist.com/news/briefing/21565956-americas-poor-were-little-mentioned-barack-obamas-re-election-campaign-they-deserve Read More