A self-reinforcing cycle where low income leads to limited access to resources, which in turn preventsindividuals or communities from improving their economic situation.
Figure 1: poverty cycle
Figure 1 above illustrates the poverty cycle. As can be seen:
Low-income households often spend the majority of their income in essential goods and services, causing lowornonesavings.
Insufficientsavings transform into lowinvestment levels.
As a result, low-income households end up with:
Low physical capital (machinery, computer technologies...).
Unlock the rest of this chapter with aFreeaccount
Nice try, unfortunately this paywall isn't as easy to bypass as you think. Want to help devleop the site? Join the team at https://revisiondojo.com/join-us. exercitation voluptate cillum ullamco excepteur sint officia do tempor Lorem irure minim Lorem elit id voluptate reprehenderit voluptate laboris in nostrud qui non Lorem nostrud laborum culpa sit occaecat reprehenderit
Definition
Paywall
(on a website) an arrangement whereby access is restricted to users who have paid to subscribe to the site.
anim nostrud sit dolore minim proident quis fugiat velit et eiusmod nulla quis nulla mollit dolor sunt culpa aliqua
Lorem ipsum dolor sit amet, consectetur adipiscing elit. Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
Duis aute irure dolor in reprehenderit
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum dolore eu fugiat nulla pariatur. Excepteur sint occaecat cupidatat non proident, sunt in culpa qui officia deserunt mollit anim id est laborum.
Note
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam quis nostrud exercitation.
Excepteur sint occaecat cupidatat non proident
Nemo enim ipsam voluptatem quia voluptas sit aspernatur aut odit aut fugit, sed quia consequuntur magni dolores eos qui ratione voluptatem sequi nesciunt. Neque porro quisquam est, qui dolorem ipsum quia dolor sit amet, consectetur, adipisci velit.
Tip
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris nisi ut aliquip ex ea commodo consequat.
Lorem ipsum dolor sit amet, consectetur adipiscing elit.
Sed do eiusmod tempor incididunt ut labore et dolore magna aliqua.
Ut enim ad minim veniam, quis nostrud exercitation ullamco laboris.
Duis aute irure dolor in reprehenderit in voluptate velit esse cillum.
End of article
Flashcards
Remember key concepts with flashcards
16 flashcards
What is one cause of poverty traps related to education?
Lesson
Recap your knowledge with an interactive lesson
9 minute activity
Note
Introduction to Poverty Traps
A poverty trap is a self-reinforcing mechanism that causes poverty to persist across generations.
They can occur at various levels, including individual, community, and national levels.
Think of a poverty trap like a hamster wheel - no matter how hard you try, you end up in the same place without external help.
Definition
Poverty Trap
A self-reinforcing mechanism that causes poverty to persist across generations, making it extremely difficult for individuals or communities to escape without external intervention.
Analogy
Imagine trying to climb out of a deep hole with slippery walls. Every time you try to climb, you slip back down. Without a ladder or rope (external help), escaping is nearly impossible.
