Essay on Understanding Poverty
Based on the information presented in this chapter, to what degree are poor people in the United States responsible for their poverty?
In the United States, poverty is one of the major social problems. This fact means that it is not a new phenomenon in the global context as there are many poor people in one of the wealthiest nations in the world. However, the most important issue that is closely connected with this social problem is “who is responsible for poverty in the United States?” Social scientist, historians, economists and politicians have been interested in the study of the poor. To what degree are poor people in the United States responsible for their poverty? In order to find the answer to this question, it is necessary to understand the culture of people who live in poverty, as well as to have an understanding of the reactions of the privileged classes in American society toward the poor.
In the United States, there is the largest gap and inequality between the rich and the poor. People who live in poverty in the United States “lack or have insufficient basic necessities, such as food, water, clothing and shelter to provide a sense of well-being, both material and psychological” (Clancy, 2013, p. 36). In fact, those people who are in the lower class are responsible for poverty, as well as the U. S. government with its failures, such as unemployment, inflation, lack of effective social support. According to researchers, “these people are poor because they are not personally responsible, and the evidence of their lack of personal responsibility is that they depend on public assistance” (Young, 2011, p. 23). This fact means that poor people are not strong enough to fight for the better life.
On the other hand, the U.S. government is responsible for poverty because the U.S. government plays an important role in developing economic and social policies aimed at assisting the U.S. citizens. The major goal of any government is to use the proper strategies to eliminate poverty rate. For example, private industry should be focused on preventing unemployment and promoting anti-poverty programs. Actually, the issue concerning the government’s responsibility is a debatable one, and it requires the adequate research. Some people state that the federal government is primary responsible for poverty reduction, others believe that the major responsibility for the growth of poverty lies on people. According to researchers, “if one thinks of poverty as resulting from a lack of opportunities empowerment and social protection, it is clear that the government is not solely responsible for filling that lack” (Moreno-Dodson & Wodon, 2008, p. 4). Private sector provides massive opportunities for poverty reduction, including credit and employment opportunities, and the promotion of all society members and protection of all citizens. Private sector contributes to poverty reduction not only through independent initiatives, but also in close partnership with the government.
At the same time, poverty is the state for many countries and nations, not only the United States. It would be wrong to blame poor people for their social status. Some of them are really lazy people; others have made poor decisions that led to poverty. However, they cannot be solely responsible for their troubles. It becomes clear that the governments are responsible for the poverty of poor people to a far greater degree. Some governments have pursued social, economic and political policies that actually harm successful development of their citizens. These policies create the major causes of poverty and inequality.
Thus, it is necessary to conclude that poor people in the United States are responsible for their poverty to a lesser degree, while the U.S. government is responsible for their poverty to a far greater degree. Because of the inadequate policies, poor people have less access to education, health, and other services. They face the problems of hunger, malnutrition and various diseases. Besides, poor people face inequalities in all spheres of human activity.
Investigate resources for people who are living in poverty. What are the resources and how do they help people.
Social inequality in modern society is associated with the negative consequences for the quality of life of the poor. The phenomenon of poverty is not a new one. In order to investigate the major resources for people who are living in poverty, it is necessary to refer to the study of the conditions of life of the poor. The term “the poor” can be defined as “persons, families and groups of persons whose resources (material, cultural and social) are so limited as to exclude them from the minimum acceptable way of life in the society they live in” (Atkinson & Marlier, 2010, p. 7). There are many resources for people who are living in poverty, including education, housing, social contacts, employment, cultural traditions and customs, religion, medical care, etc. These resources affect the poor, their decisions, their lifestyles, etc. Moreover, each of these resources can help the poor to overcome various obstacles in their lives, including inequality, discrimination, prejudices, low self-esteem and other obstacles that affect human life to a great extent.
Education is one of the major resources for human beings, no matter how rich he or she is. Education has a positive impact on human life, providing massive opportunities of individual development and career growth. Job training helps the poor to find a good job and solve the problem of unemployment. Human service training programs and technical and community colleges guarantee positive outcomes. Another important resource is housing. For poor people, housing is essential. Today the U. S. government provides special housing for the poor – temporary shelters, including night shelters and battered women’s shelters. Social contacts are one of the most important resources that affect human life and individual development. Employment is another significant resource that can help the poor to improve the quality of their lives and become more independent. Today many anti-poverty programs developed and launched by the federal government that are necessary for poverty reduction. Expanded employment opportunities for the poor can change poverty outcomes. The U. S. government has generated employment opportunities for the poor through rural development and through the creation of the “credit to the enterprising poor” (Sharif, 2007, p. 141). Cultural traditions and customs can be viewed as a significant resource for the poor. Researchers state that “third world poverty is the result of traditional values” (Blackwell et al., 2008, p. 79). In the United States, poor people also face serious problems connected with the lack of following cultural traditions and customs. Many poor people are undeveloped, demonstrating “technological retardation linked to cultural flaws” (Blackwell et al., 2008, p. 79). This fact means that their culture is not focused on modern technology. These people live in the world of the so-called “outdated traditional values” (Blackwell et al., 2008, p. 79). The poor people should overcome these values and become more independent, innovative and flexible to new technological changes. Religion is an important resource that can help the poor to become more self-confident and develop human values. Christian teaching regarding the possession of wealth helps the poor to assess the meaning of life and find the proper solutions to the existing challenges. Medical care is a crucial resource for the poor. Today the federal government has developed effective health care settings to assist the poor, including “free medical clinics, community health centers and obstetrics clinics associated with hospitals” (Templeton, 2011, p. 45).
Thus, it is necessary to conclude that various resources affect the life of people who are living in poverty. These resources help people to become more developed and enjoy equal rights in human society, avoid prejudice and discrimination. These resources include education, housing, social contacts, employment, cultural traditions and customs, religion, medical care, etc. People without resources have limited opportunities to achieve the established goals in their lives. People with resources have more chances to become successful in their lives. The U. S. government should promote the proper resources to facilitate the life of poor people.
The global recession that began in December 2007 has been described by U.S. Federal Reserve Chairman Ben Bernake as one of the most difficult financial and economic episodes in modern history. According to researchers, “the current global recession is certainly the worst economic crisis that has afflicted the international system since the Great Depression”(Tellis, 2009, p. 3). The recession that was identified in the United States in 2007 can be defined as a financial crisis, which was based on failing subprime mortgages, and which later was expanded into a “larger recession” that had a strong impact on the U.S. economy. Later it was expanded at the global level.
Millions of people not only in the U.S., but also in many other countries of the world have either lost their jobs and/or have had hours and benefits cut. Besides, millions people have lost a large portion of their retirement funds and in most cases have also lost significant equity in their homes. Meanwhile, as has been reported in the media, Chief Executor Officers (CEOs) of the world’s largest companies continue to receive extravagant bonuses even though their company profits have plummeted and many of their employees have been laid off or fired due to the “bottom line”. According to researchers, the banking sector has been influenced by the global economic recession, as well as many other fields. Nevertheless, their financial results were good enough. Based on the findings provided by the Fair Economy, “despite the looming economic recession, CEOs of the largest 500 companies in America earned an average of US $10.5 million, 344 the pay of typical American workers and 866 times as much as minimum wage employees” (Sun et al., 2010, p. 233). These findings demonstrate impressive numbers.
Undoubtedly, this situation is unethical. Actually, the recession was partly caused by the unethical behavior of American investors. This situation places emphasis on the importance of ethics and its role in the country’s economy. The recession of 2007 involved unethical and illegal action of the leaders of large corporations. Unethical profits of large companies have negative impact on population.
There is a necessity to use the proper strategies to improve the situation, e.g. the federal government should step in and regulate pay. According to researchers, later in 2009, “the president Obama maintained general support for his handling of the economy for seven months, despite a severe recession”( Sun et al., 2010, p. 89). In 2007, many Americans blamed the US President George Bush for the lack of support in the economic recession. Researchers state that there were at least four categories of the government’s mistakes. These mistakes produced the crisis. First, monetary policy and global imbalances affected the economy of the country. Second, different government policies promoted subprime mortgage related risk taking by all types of financial institutions. For example, the Congress pressured the enterprises, sponsored by the federal government, etc. These policies contributed to the promotion of the underestimation of the existing subprime risk. Third, the U.S. government failed to guarantee prudential regulation of commercial banks operating in the U.S. This mistake led to the crucial problems connected with measuring bank risks. Fourth, the government failed to regulate subprime ratings inflation and provide the regulatory reliance on ratings.
Thus, it is necessary to conclude that the global recession that began in December 2007 had a negative impact on the U.S. economy and on the lives of all Americans. Millions of jobs had been destroyed. Nevertheless, the recession of 2007 provided an example of the so-called flat world, because it had been spread worldwide, affecting global economy as well. Many large businesses used the recession to improve their positions on the market. Their unethical profits should be addressed by the government policies, through pay regulation. Actually, the deep recession that began in 2007-2008, revealed the failures and effects of the government’s inadequate regulation of banks and financial institutions. Millions of people could not sustain their mortgage loans and the government did not make steps to regulate payments. So, reviewing the financial crisis of 2007-2008, it is necessary to pay due attention to the role of the government in this situation, including its failures- deregulation and lack of the oversight of the banking system.
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