Poverty and Inequality

What is Poverty?

Poverty is a state or condition in which a community lacks financial and essentials for a minimum living condition. The Philippines is not far from this, in fact, we are dubbed to be the third in the world.

The people who cannot capable of providing the basic needs for themselves are considered to be in Poverty.

What are the key trends in Global Poverty and Inequality?

One Key trend is globalization. Globalization comes from the word Global, which means that it will reach everyone and everywhere. Globalization is where information, culture, or technology reaches the borders of nations. Capitalism is another trend; it is an economic and political system in which a country’s trade and industry are controlled by private owners for profit, rather than by the state.

Does capitalism eliminate or reinforce inequality?

In a sense, inequality results from differences in skill or talent, but we cannot simply let this explain the huge gaps between the rich and poor. Although it is sad to say it, capitalism does reinforce inequality. In the Philippines, inheriting your family’s wealth is something famous, but this will help widen the gap between the rich and poor significantly. This is what a capitalist mindset is.

Has globalization increased, or decreased global poverty?

According to Hodgson, G. (2020) “capitalism embodies and sustains an Enlightenment agenda of freedom and equality. Typically there is freedom to trade and equality under the law, meaning that most adults — rich or poor — are formally subject to the same legal rules.” In other words, capitalism can generate more inequality.

References:

Chen, J. (2020). Poverty. Retrieved from. https://www.investopedia.com/terms/p/poverty.asp

Kopp, C. (2020) Globalization. Retrieved from. https://www.investopedia.com/terms/g/globalization.asp