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The Great American Indigence - Research Paper Example

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It was confirmed by the eminent economist Alfred Marshall that human wants are unconstrained. In the study of finances, it has been stated that the most imperative economic problem of any country in the current world is the difficulty of ‘choice and scarcity’…
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The Great American Indigence
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Download file to see previous pages If the income distribution of a market is not equal, then the resource allocation becomes ineffective. In such circumstances, the economy gets bifurcated into two groups namely, the ‘haves’ and the ‘have nots’. An increase in the strength of the latter is the underlying factor which generates poverty in the economy.
This research paper will explain the poverty of U.S. in details.
United States Poverty:
Poverty is the state of misery that can exist in any nation in the world. If a nation is poor, then it is not capable of meeting the basic requirements of its citizens. Poverty not only dampens the economic prosperity of a country, but also brings about the downfall of human development in a nation1.
This research paper will consider the extent of poverty in United States. It was earlier believed by the economists that poverty only had its presence in the lagging and underdeveloped nations in the world. However, the contemporary economic affairs of the world show that rich developed nations like, United States, also house substantial amount of poverty in its domestic economy.
Poverty in United States:
As recorded in 2011, the level of poverty in United States was about 15%. It was estimated that around 46.2 million individuals in the country were poor11. The median level of the family incomes of the individuals of the country had fallen by almost 1.5% from 2010 to 2011. It has been claimed by the researchers that the poverty in U.S. is actually responsible for the rise in the country’s level of unemployment. After the globalization of the world economy in 1990, the competences of the developed nations have fallen significantly. The fall in the core competences in U.S. have resulted in a decline in employment opportunities in the nation. The fall in the income prospects have increased the poverty in U.S. Then again, the poverty in U.S. is seen to be generally urban in nature. III. Causes of Poverty There are various causes or reasons that have caused the poverty in U.S. The big American corporate companies always outsource their requirement of skilled labor workforce from the developing nations in the world. This is because skilled and educated workers in those nations are available at a cheaper cost. This has made the U.S. workforce less competitive in nature, thereby lacking the proper knowledge which is needed for maintaining high paid jobs. Thus, lack of higher education and knowledge among the youth of U.S. is a prime reason for its impending urban poverty. The recession in the world economy since 2007 has added fuel to the fire of dismay for the U.S. individuals. Low velocity of money circulation in the economy has reduced the productivity and investment thresholds of the nation2. A fall in the level of productivity in the economy has been responsible for the job losses in the nation. In figure 1 at the end, it can be observed that down the years from 1968 to 2012, the workforce participation in U.S. did not increase. Rather, the trend shows a fall in the employment opportunities. Then again, it is obvious and quite natural that the population strength of the country has increased with time. The employment level in the nation has not increased in equivalence to the rise in the population of the nation10. This shows that a large proportion of the individuals in U.S. is unemployed and therefore, leads their lives as poor urban individuals. The ...Download file to see next pagesRead More
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