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

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In this paper, the writer will analyze the article published by The Economist about poverty and its affects upon the poor in the United States of America. Moreover, the author will represent detail understanding of a problem and reveal some thoughts and arguments on the theme…
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Overview of the Issue Presented in the News Article
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Overview of the Issue Presented in the News Article

Download file to see previous pages... 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...
he 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.
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.
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. ...Download file to see next pagesRead More
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