Economic Policy Recommendarion Research Paper Example | Topics and Well Written Essays - 1750 words

Economic Policy Recommendarion - Research Paper ExampleRelative indigence on the several(prenominal) other hand, refers to the economic inequality that is experienced in a particular society. In the early times, poverty was a common cordial problem not only for the developing countries but besides for the currently essential nations. The increased poverty aim was not only due to insufficient and inadequate methods but also it was largely ca gived by the slump demand of the products therefore causing low production in the factories. infrangible and relative poverty are measured in different ways. According to the World Bank, $1.25 per day is the doorway for measuring absolute poverty. However, the threshold has been controversial based on the various thresholds used by some countries. For example, in 2010, the US maintained its threshold at $15.15 per day while China placed its threshold for absolute poverty at $ 0.55 per day (Banerjee and Esther, 2011). During the same yea r, India maintained that its threshold was standing at US$ 1.0 per day. On its part, relative poverty is depicted by the level of income inequality. It is measured by the percentage of individuals with income that is slight than the median income. This paper seeks to discuss the impact of poverty and give policy recommendation on how this social problem can be solved using an economic policy. Impacts of poverty to society Poverty affects a society in different ways. One of the key effects is hunger. Due to lack of adequate cash to purchase food produce as well as lack of sufficient factors of production that includes land, labor, entrepreneurship and great(p) as a result of poverty, members of the society experience reduced food. The problem of hunger especially in some African countries results to illnesses that are caused by lack of springy nutrients for body growth. Another impact of poverty is unemployment. Despite the increase in population, poor countries have not adequate financial resources to initiate investing that acts as major sources of employment. As a result, postgraduate percentage of the members of the society remains jobless thus leading to low households income and low purchasing power (Babb, 2009). Similarly, due to low income that the poor families are make it either monthly or annually, they do not see the need for education. They in most cases use their low income to purchase cheap food products. As a result of lack of adequate education, and vital skills, the poor members of the society are not eligible to be employed thus raising the level of unemployment in a country. Poverty causes discrimination within a society. For example, due to their strong financial position, naughty income earners segregates their poor counterparts both in schools, hospitals and even in making decisions that affects the entire society. On their part, the poor individuals experiences low self esteem and inferior aspects that deteriorates their conditio n (Kerbo, 2006). Based on the increased cases of illnesses among the poor countries, the governments incur high costs in the form of low productivity and high financial expenditure on health care. Ultimately, such governments have to seek for grants from other countries or by increasing domestic taxes thus exerting more than pressure on their economy. An economic policy solution to the poverty problem Based on the ban implications of poverty to the society and to a country as a whole, it is fundamental for