A poverty trap which is a mechanism makes everything very difficult for people to escape poverty. When people want to earn enough in order to get rid of the poverty trap, capitalism requires incredibly a significant amount of capital to keep them on the poor side.
Many factors contribute to creating a poverty trap, including limited access to credit and capital markets, extreme environmental degradation, corrupt governance, capital flight, poor education system, disease ecology, lack of public health care, and war and poor infrastructure.
Recently, most technological devices are broken down more quickly than they were 20 years ago because capitalism is based upon consumption and demand. If there is no enough demand, then there is no enough capital to keep capitalists rich. Therefore, the market creates its own demand and promotes consumption. Namely, poor people cannot save money to replace the washing machine, phone, computer, and so on. To spend money on the replacement of technological devices, they start working harder and longer than ever. However, they cannot earn as much as they lose because while hard-working, other expenses show up such as health care issues, school fees, and so on. That's why they just fall in a loop and do not escape poverty.
Many factors contribute to creating a poverty trap, including limited access to credit and capital markets, extreme environmental degradation, corrupt governance, capital flight, poor education system, disease ecology, lack of public health care, and war and poor infrastructure.
Recently, most technological devices are broken down more quickly than they were 20 years ago because capitalism is based upon consumption and demand. If there is no enough demand, then there is no enough capital to keep capitalists rich. Therefore, the market creates its own demand and promotes consumption. Namely, poor people cannot save money to replace the washing machine, phone, computer, and so on. To spend money on the replacement of technological devices, they start working harder and longer than ever. However, they cannot earn as much as they lose because while hard-working, other expenses show up such as health care issues, school fees, and so on. That's why they just fall in a loop and do not escape poverty.
This problem is caused by capitalism itself due to the reason that we have limited sources of everything, underground sources, water sources, and money sources. The economy has to share its income equably or unequally with people. Money, betimes, is apportioned among people by their job position and education level. People, however, in the poverty trap zone cannot improve their skills because of the lack of time. In short, they generally do not have a chance to escape poverty.
Free education is the most important opportunity for people living in the poverty zone. Their children have an opportunity to have the same quality education with wealthy people's children. Free education creates an occasion for everyone to be a doctor, a lawyer, an engineer, and so on. Otherwise, people having enough money go to a college or university, and others continue their lives in the poverty loop.
Free education is the most important opportunity for people living in the poverty zone. Their children have an opportunity to have the same quality education with wealthy people's children. Free education creates an occasion for everyone to be a doctor, a lawyer, an engineer, and so on. Otherwise, people having enough money go to a college or university, and others continue their lives in the poverty loop.
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