econ papaer 2

econ papaer 2 - Reasons for Poverty in America The United...

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Reasons for Poverty in America The United States of America is considered as the richest country in the world, however more than 12% of its population lives below the poverty line. Statistics suggest that the economic growth and development amongst the communities in America are uneven, as the income inequality is on rise. Many government policies and programs are introduced to overcome the unevenness that exists in the country however such programs have been considered ineffective and unreasonable. Moreover, personal character has been considered to play an important role towards poverty as many people do not take the incentive to succeed. In other words, the government policies designed in the United States for the poor are so frail, that along with individual deficiencies it leads to poverty in the nation. According to Schiller (2008), theories like “Flawed Character” and “Big Brother” play a very important role towards poverty in America. In his text Schiller states that the Flawed Character defines an individual is to be blamed for his own actions. In other words this theory suggest that individuals who lack motivation and work ethic skills, never take the initiative to educate themselves or train themselves for the working world. Similarly, in the words of Schiller (2008) “Poverty is regarded as the natural result of Individual defects in aspirations or ability”. The economic concept of Human capital theory plays an essential role in individual’s life as the theory states that every human is born with abilities but the critical question is how much are those abilities developed and expanded via later investments. The more an individual invests in himself the more productive he tends to become which would be good as he would get a good job that would help him to have a better standard of living. On the contrary, the “Big
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This note was uploaded on 12/22/2011 for the course ECON 303 taught by Professor Battista during the Fall '11 term at Cal Poly.

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econ papaer 2 - Reasons for Poverty in America The United...

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