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Poverty and Inequality in the World, Essay Example

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Poverty and inequality are two matters at all times influencing one another. Undoubtedly, where there is poverty there is also inequality happening on a social level.  These two terms, applied when discussing society in its entirety, are utilized to describe how inequality on an economical level affects social statuses, making room for let us say lucky groups, the ones able to afford almost anything and the unlucky, those who can barely make it from one day to another. Thereof, these two terms describe the cause and effect of the economic system, however complex it might be.

The main actors included in this process are, actually, the people living in the society and, also, the system at work in the society, by means of which people can or cannot get advantage insofar as to make their lives better. The actors included in the inequality process are, therefore, people on the one hand and, on the other hand, the economic system active in a particular society. This is exactly why the matter could not be discussed generally, but applied to each country in part.

The main focus of each scholar is that of identifying the most efficient strategies by means of each poverty to be avoided and inequality disposed of. However, given the complexity of the problem and the variety of variables which influence it, my standpoint is that no general strategy can be found, no strategy which, if applied anywhere, could solve such a sensitive matter. More precisely, distinct solutions should be sought and applied, afterwards, in each country in part.  I do not ignore the fact that relevant insights could be derived from one country which could aid solve the problem in another country, but that is not, under no circumstance, enough. In other words, global citizenship philosophy should be understood as the point of departure for the struggle of highlighting the efficient solutions towards eliminating inequality in societies.

Thereof, the main question I wish to bring to debate is that of identifying whether it would be more relevant that a united team of researchers would study a corpus of distinct societies in order to put together a strategy which would help eliminate inequality or that the same team of researchers would study the same country and its society, irrespective of the other insights derived from distinct societies, with the same scope. This question parts from the discussions in ”Globalization. A very short introduction”, by Manferd B. Steger. This made me realize that such a scope implies a numerous of variables to be taken into consideration and, however, contextualization, especially at a time in which globalization is rapidly escalating.

Probably, the most important aspect of such a research consists of the capabilities of the specialists of identifying the exact characteristics of each society in part which would affect, in any way, the rise of inequality. The presupposition stands clear. Each society has characteristics that influence the economic process, some of which are the great historical moments it went through, the collective mentality, the political system, the social intake of the differences between people, from the ways in which one can go from one social status to another until the way in which women are being viewed in comparison to men. Thereof, the question I propose stands relevant from the point of view that the strategy which, for example, would be applicable in a society in which women are expected to be paid far less than men occupying the very same positions would not be efficient in a society in which women are already highly emancipated and are not expected to be stay-at-home mothers for a long period of time.

Steger, B. “Manfred. Globalization: A Very Short Introduction.”

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390 Poverty Essay Topic Ideas & Examples

  • 📑 Aspects to Cover in a Poverty Essay

Students who learn economics, politics, and social sciences are often required to write a poverty essay as part of their course. While everyone understands the importance of this topic, it can be hard to decide what to write about. Read this post to find out the aspects that you should cover in your essay on poverty.

🏆 Best Poverty Topics & Free Essay Examples

👍 powerful topics on poverty and inequality, 🎓 simple & easy topics related to poverty, 📌 interesting poverty essay examples, ⭐ strong poverty-related topics, 🥇 unique poverty topics for argumentative essay, ❓ research questions about poverty.

Topics related to poverty and inequality might seem too broad. There are so many facts, factors, and aspects you should take into consideration. However, we all know that narrowing down a topic is one of the crucial steps when working on an outline and thesis statement. You should be specific enough to select the right arguments for your argumentative essay or dissertation. Below, you will find some aspects to include in your poverty essay.

Poverty Statistics

First of all, it would be beneficial to include some background information on the issue. Statistics on poverty in your country or state can help you to paint a picture of the problem. Look for official reports on poverty and socioeconomic welfare, which can be found on government websites. While you are writing this section, consider the following:

  • What is the overall level of poverty in your country or state?
  • Has the prevalence of poverty changed over time? If yes, how and why?
  • Are there any groups or communities where poverty is more prevalent than in the general population? What are they?

Causes of Poverty

If you look at poverty essay titles, the causes of poverty are a popular theme among students. While some people may think that poverty occurs because people are lazy and don’t want to work hard, the problem is much more important than that. Research books and scholarly journal articles on the subject with these questions in mind:

  • Why do some groups of people experience poverty more often than others?
  • What are the historical causes of poverty in your country?
  • How is poverty related to other social issues, such as discrimination, immigration, and crime?
  • How do businesses promote or reduce poverty in the community?

Consequences of Poverty

Many poverty essay examples also consider the consequences of poverty for individuals and communities. This theme is particularly important if you study social sciences or politics. Here are some questions that may give you ideas for this section:

  • How is the psychological well-being of individuals affected by poverty?
  • How is poverty connected to crime and substance abuse?
  • How does poverty affect individuals’ access to high-quality medical care and education?
  • What is the relationship between poverty and world hunger?

Government Policies

Governments of most countries have policies in place to reduce poverty and help those in need. In your essay, you may address the policies used in your state or country or compare several different governments in terms of their approaches to poverty. Here is what you should think about:

  • What are some examples of legislation aimed at reducing poverty?
  • Do laws on minimum wage help to prevent and decrease poverty? Why or why not?
  • How do governments help people who are poor to achieve higher levels of social welfare?
  • Should governments provide financial assistance to those in need? Why or why not?

Solutions to Poverty

Solutions to poverty are among the most popular poverty essay topics, and you will surely find many sample papers and articles on this subject. This is because poverty is a global issue that must be solved to facilitate social development. Considering these questions in your poverty essay conclusion or main body will help you in getting an A:

  • What programs or policies proved to be effective in reducing poverty locally?
  • Is there a global solution to poverty that would be equally effective in all countries?
  • How can society facilitate the reduction of poverty?
  • What solutions would you recommend to decrease and prevent poverty?

Covering a few of these aspects in your essay will help you demonstrate the in-depth understanding and analysis required to earn a high mark. Before you start writing, have a look around our website for more essay titles, tips, and interesting topics!

  • Poverty Research Proposal To justify this, the recent and most current statistics from the Census Bureau shows that the level and rate of poverty in USA is increasing, with minority ethnic groups being the most disadvantaged.
  • Poverty and the Environment The human population affects the environment negatively due to poverty resulting to environmental degradation and a cycle of poverty. Poverty and the environment are interlinked as poverty leads to degradation of the environment.
  • Poverty: A Sociological Imagination Perspective I was raised in a nuclear family, where my mum was a housewife, and my father worked in a local hog farm as the overall manager.
  • “The Singer Solution to World Poverty” by Peter Singer The article “The Singer Solution to World Poverty” by author Peter Singer attempts to provide a workable solution to the world poverty problem.
  • Poverty Areas and Effects on Juvenile Delinquency The desire to live a better life contributes to the youths engaging in crimes, thus the increase in cases of juvenile delinquencies amid low-income families. The studies indicate that the fear of poverty is the […]
  • The Philippines’ Unemployment, Inequality, Poverty However, despite the strong emphasis of the government on income equality and poverty reduction along with the growth of GDP, both poverty and economic and social inequality remain persistent in the Philippines.
  • Is Poverty a Choice or a Generational Curse? The assumption that poverty is a choice persists in public attitudes and allows policy-makers to absolve themselves of any responsibility for ensuring the well-being of the lower socioeconomic stratum of society.
  • Poverty in the World In this paper, we will be looking at the situation of poverty in the world, its causes and the efforts of the international organizations to manage the same.
  • Poverty in Africa These pictures have been published online to show the world the gravity of the poverty situation in the African continent. The pictures represent the suffering of majority of the African people as a result of […]
  • Children Living in Poverty and Education The presence of real subjects like children is a benefit for the future of the nation and a free education option for poor families to learn something new and even use it if their children […]
  • The End of Poverty Philippe Diaz’s documentary, The End of Poverty, is a piece that attempts to dissect the causes of the huge economic inequalities that exist between countries in the Northern Hemisphere and the Southern Hemisphere.
  • Analysis of Theodore Dalrymple’s “What Is Poverty?” With ethical arguments from Burnor, it can be argued that Dalrymple’s statements are shallow and based on his values and not the experience of those he is judging.
  • Cause and Effect of Poverty For example, the disparities in income and wealth are considered as a sign of poverty since the state is related to issues of scarcity and allocation of resources and influence.
  • What Causes Poverty in the World One of the major factors that have contributed to poverty in given areas of the world is overpopulation. Environmental degradation in many parts of the world has led to the increase of poverty in the […]
  • Community Work: Helping People in Poverty The first project would be water project since you find that in most villages water is a problem, hence $100 would go to establishing this project and it’s out of these water then the women […]
  • Poverty Alleviation and Sustainable Development The research focuses on the causes of poverty and the benefits of poverty alleviation in achieving sustainable development. One of the causes of poverty is discrimination and social inequality.
  • Max Weber’s Thoughts on Poverty Weber has contributed to the exploration of the origins of poverty and the impact of religions on the attitude to it.
  • Relationship Between Crime Rates and Poverty This shows that the strength of the relationship between the crime index and people living below the line of poverty is.427.
  • Poverty Effects on Child Development and Schooling To help children from low-income families cope with poverty, interventions touching in the child’s development and educational outcomes are essential. Those programs campaign against the effects of poverty among children by providing basic nutritional, academic, […]
  • The Problem of Poverty in Bob Marley’s “No Woman, No Cry” To see the situation from the perspective of its social significance, it is necessary to refer to Mills’ concept of sociological imagination and to the division of problems and issues into personal and social ones.
  • Poverty in Bambara’s The Lesson and Danticat’s A Wall of Fire Rising It is important to note the fact that culture-based poverty due to discrimination of the past or political ineffectiveness of the nation can have a profound ramification in the lives of its victims.
  • The Singer Solution to World Poverty: Arguments Against The article compares the lives of people in the developed world represented by America and that of developing world represented by Brazil; It is about a school teacher who sells a young boy for adoption […]
  • Poverty in Rural and Urban Areas My main focus is on articles explaining the sources of poverty in rural and urban areas and the key difference between the two.
  • Poverty in Urban Areas The main reason for escalation of the problem of poverty is urban areas is because the intricate problems of urban poverty are considered too small to attract big policies.
  • Social Issues of Families in Poverty With the tightened budget, parents of the families living in poverty struggle to make ends meet, and in the course of their struggles, they experience many stresses and depressions.
  • Reflective Analysis of Poverty It can be further classified into absolute poverty where the affected do not have the capability to make ends meet, and relative poverty which refer to the circumstances under which the afflicted do not have […]
  • Poverty, Government and Unequal Distribution of Wealth in Philippines The author of the book Poverty And The Critical Security Agenda, Eadie, added: Quantitative analyses of poverty have become more sophisticated over the years to be sure, yet remain problematic and in certain ways rooted […]
  • The Myth of the Culture of Poverty Unfortunately, rather all of the stereotypes regarding poor people are widespread in many societies and this has served to further increase the problem of generational poverty. Poor people are regarded to be in the state […]
  • Poverty Through a Sociological Lens Poverty-stricken areas, such as slums, rural villages, and places hit by disasters, lack the required economic activities to improve the employment and wealth status of the people.
  • Marginalization and Poverty of Rural Women The women are left to take care of the economic welfare of the households. I will also attempt to propose a raft of recommendations to alleviate poverty and reduce marginalization of women in the rural […]
  • Poverty and Global Food Crisis: Food and Agriculture Model Her innovative approach to the issue was to measure food shortages in calories as opposed to the traditional method of measuring in pounds and stones.
  • Tourism Contribution to Poverty Reduction Managers usually make targeting errors such as poor delivery of tourism benefits to the poor and accruing tourism benefit to the rich in the society.
  • Analysis of a Social Problem: Poverty Furthermore, the World Bank predicts that both the number of people and the percentage of the population living in extreme poverty will increase in 2020 and 2021 due to the coronavirus outbreak.
  • Dependency Theory and “The End of Poverty?” It is also reflected in the film “The End of Poverty?” narrating the circumstances of poor countries and their precondition. It started at the end of the fifteenth century and marked the beginning of the […]
  • Poverty and Diseases A usual line of reasoning would be that low income is the main cause of health-related problems among vulnerable individuals. Such results that the relationship between mental health and poverty is, in fact, straightforward.
  • Social Issues; Crime and Poverty in Camden This has threatened the social security and peaceful coexistence of the people in the community. The larger the differences between the poor and the rich, the high are the chances of crime.
  • Poverty in the Bronx: Negative Effects of Poverty South Bronx is strictly the southwestern part of the borough of Bronx and Bronx is the only borough in New York city in the mainland.
  • The Problem of Poverty in Chad Thus, the study of the causes of poverty in the Republic of Chad will help to form a complete understanding of the problem under study and find the most effective ways to solve it.
  • Poverty: $2.00 a Day in America When conversations about the poor occur in the city of Washington, they usually discuss the struggles of the working poor, forgetting about the issues that the non-working poor face day by day.
  • Concept of Poverty The main difference between this definition and other definitions of poverty highlighted in this paper is the broad understanding of the concept.
  • Environmental Degradation and Poverty It is however important to understand the causes of the environmental degradation and the ways to reduce them, which will promote the improvement of the environmental quality.
  • Consumerism: Affecting Families Living in Poverty in the United States Hence, leading to the arising of consumerism protection acts and policies designed to protect consumers from dishonest sellers and producers, which indicates the high degree of consumer’s ignorance, and hence failure to make decisions of […]
  • Poverty as Capability Deprivation In this paper, the importance of social justice manifests through the understanding of social deprivation, as opposed to the understanding of income levels in the achievement of social justice.
  • Poverty in Brazil The primary aim of the exploration was to relate and construe the experimental findings arising from the application of the FGT poverty standards reformulation to Brazilian domestic examination data.
  • Poverty and Homelessness as a Global Social Problem What makes the task of defining poverty particularly difficult is the discrepancy in the distribution of social capital and, therefore, the resulting differences in the understanding of what constitutes poverty, particularly, where the line should […]
  • “The Hidden Reason for Poverty…” by Haugen It is also noteworthy that some groups of people are specifically vulnerable and join the arrays of those living in poverty.
  • Global Conflict and Poverty Crisis The contemporary issue of global conflict and poverty crisis requires the attention of international communities and governments. The study of international conflicts and poverty crisis is important for individuals, communities, and nations across the world.
  • Poverty and Inequality in Jacksonian America One of the reactions of the leaders and most especially the presidents under this period was to impose a policy of non-intervention by the federal government.
  • The Problems of Poverty and Hunger Subsequently, the cause in this case serves as a path to a solution – more social programs are needed, and wealthy citizens should be encouraged to become beneficiaries for the hungry.
  • “Life on a Shoestring – American Kids Living in Poverty” by Claycomb Life on a Shoestring – American Kids Living in Poverty highlights the widening disparity between the poor and the wealthy in America and how the economic systems are set up to benefit the rich and […]
  • Poverty in “A Modest Proposal” by Swift The high number of children born to poor families presents significant problems for a country.”A Modest Proposal” is a satirical essay by Jonathan Swift that proposes a solution to the challenge facing the kingdom.
  • Poverty as a Great Social Problem and Its Causes The human capital model assumes that the inadequate incomes of the working poor are the result of characteristics of the labor market rather than the inadequacy of the poor.
  • “Facing Poverty With a Rich Girl’s Habits” by Suki Kim Finally, revealing the problems of adapting to a new social status, the story turns remarkably complex, which also lends it a certain charm.
  • Poverty Reduction in Africa, Central America and Asia In spite of the growing attention into the subject, poverty threatens majority of the communities and societies in the developing countries, particularly in Africa.
  • Aspects of Global Poverty There are arguments that have been put forth in regard to the causes of poverty in various nations with some people saying that the governments in various nations are there to be blamed for their […]
  • American War on Poverty Throughout US History It was the beginning of the issue of poverty. However, there is an opinion that it was the question of policy and his way to increase the level of popularity.
  • How Poverty Contributes to Poor Heath The results show that poverty is the main cause of poor health. The study was purposed to assess the effect of poverty in determining the health status of households.
  • Global Poverty Project: A Beacon of Hope in the Fight Against Extreme Poverty The organization works with partners worldwide to increase awareness and understanding of global poverty and inspire people to take action to end it.
  • The Causes of an Increase in Poverty in Atlanta, Georgia The key causes of the high poverty rise in the city include housing policies and instabilities, the lack of transit services and public transportation infrastructure in suburban areas, and childhood poverty.
  • Thistle Farms: Help for Women Who Are Affected by Poverty As I said in the beginning, millions of women need help and assistance from the community to overcome poverty and heal emotional wounds caused by abuse. You can purchase a variety of its home and […]
  • Median Household Incomes and Poverty Levels The patterns of poverty in the Denver urban area show that rates are higher in the inner suburb and the core city and lower in the outer suburb.
  • Poverty: The American Challenge One of the main problems in the world is the problem of poverty, which means the inability to provide the simplest and most affordable living conditions for most people in a given country.
  • The Poverty Issue From a Sociological Perspective The core of the perspective is the idea that poverty is a system in which multiple elements are intertwined and create outcomes linked to financial deficits.
  • Saving the Planet by Solving Poverty The data is there to make the necessary links, which are needed when it comes to the economic variations and inadequate environmental impacts of climate change can be distinguished on a worldwide scale.
  • Anti-Poverty Programs From the Federal Government The programs provide financial assistance to low-income individuals and families to cover basic needs like housing and food. The anti-poverty programs that have been most effective in reducing poverty rates in the United States are […]
  • Rural Development, Economic Inequality and Poverty The percentage of the rural population is lower for developed countries, including the United States and the United Kingdom. Thus, the objective of the proposal is to determine how the inhabitants of the country in […]
  • Global Poverty: Ways of Combating For example, one of such initiatives is social assistance and social protection programs, which ensure the safety and creation of various labor programs that will help increase the number of the working population.
  • Poverty: Aspects of Needs Assessment The target neighborhood and population for the following analysis are women of reproductive age, defined as 15 to 49 years, in Elmhurst and Corona, Queens. 2, and the percentage of births to women aged over […]
  • What Is Poverty in the United States? Estimates of the amount of income required to meet necessities serve as the foundation for both the official and supplemental poverty measurements.
  • The Caribbean Culture: Energy Security and Poverty Issues Globally, Latin American and the Caribbean also has the most expensive energy products and services because of fuel deprivation in the Caribbean and the Pacific regions.
  • Poverty: The Main Causes and Factors Because of the constant process of societal development, the concept of poverty changes rapidly, adapting to the new standards of modern human life.
  • How to Overcome Poverty and Discrimination As such, to give a chance to the “defeated” children and save their lives, as Alexie puts it, society itself must change the rules so that everyone can have access to this ticket to success. […]
  • Poverty and Homelessness in American Society It is connected with social segregation, stigmatization, and the inability of the person to improve their conditions of life. The problem of affordable housing and poverty among older adults is another problem that leads to […]
  • Private Sector’s Role in Poverty Alleviation in Asia The ambition of Asia to become the fastest-growing economic region worldwide has led to a rapid rise of enterprises in the private sector.
  • Connection of Poverty and Education The economy of the United States has been improving due to the efforts that have been made to ensure that poverty will not prevent individuals and families from having access to decent education.
  • The Opportunity for All Program: Poverty Reduction The limiting factors of the program may be the actions of the population itself, which will not participate in the employment program because of the realized benefits.
  • Early Childhood Financial Support and Poverty The mentioned problem is a direct example of such a correlation: the general poverty level and the well-being of adults are connected with the early children’s material support.
  • Global Poverty: The Ethical Dilemma Unfortunately, a significant obstacle to such global reforms is that many economic systems are based on the concept of inequality and exploitation.
  • Discussion: Poverty and Healthcare One of the research questions necessary to evaluate this issue is “How do ethical theories apply to the issue?” Another critical research question worth exploring is “Which cultural values and norms influence the problem?” These […]
  • Explosive Growth of Poverty in America The three richest Americans now own 250 billion USD, approximately the same amount of combined wealth as the bottom 50 percent of the country. Wealth inequality is a disturbing issue that needs to be at […]
  • Global Poverty: Famine, Affluence, and Morality In the article Famine, Affluence, and Morality, Michael Slote contends that rich people have a moral obligation to contribute more to charities.
  • The Poverty and Education Quality Relationship Although the number of people living under the poverty threshold has decreased in the last 30 years, more than 800,000,000 people still have to live with insufficient money and a lack of food, water, and […]
  • Decreasing Poverty With College Enrollment Program In order to achieve that, it is necessary, first and foremost, to increase the high school students’ awareness of the financial aid programs, possibilities of dual enrollment, and the overall reality of higher education.
  • Reducing Poverty in the North Miami Beach Community The proposed intervention program will focus on the students in the last semester of the 9th and 10th grades and the first semester of the 11th and 12th grades attending the client schools.
  • Food Banks Board Members and Cycle of Poverty What this suggests is that a large portion of the leadership within these collectives aim to provide assistance and food but not to challenge the current system that fosters the related issues of poverty, unemployment, […]
  • Poverty as a Social Problem in Burundi The rationale for studying poverty as a social problem in Burundi is that it will help to combat poverty through the advocacy plan at the end of this paper.
  • Poverty: Subsidizing Programs Subsidizing programs are considered welfare and net initiatives that the government takes to aid low-income families and individuals affected by poverty.
  • Is Globalization Reducing Poverty and Inequality? & How to Judge Globalism The article Is Globalization Reducing Poverty and Inequality by Robert Hunter Wade explores the phenomenon of globalization and its influence on the poverty and inequality ratios all over the world.
  • “Poverty, Toxic Stress, and Education…” Study by Kelly & Li Kelly and Li are concerned with the lack of research about poverty and toxic stress affecting the neurodevelopment of preterm children.
  • Poverty Simulation Reflection and Its Influence on Life Something that stood out to me during the process is probably the tremendous emotional and psychological impact of poverty on a person’s wellbeing.
  • Life Below the Poverty Line in the US The major problem with poverty in the US is that the number of people living below the poverty threshold is gradually increasing despite the economic growth of the country. SNAP is not considered to be […]
  • The Relationship Between Single-Parent Households and Poverty The given literature review will primarily focus on the theoretical and empirical aspects of the relationship between single-parent households and poverty, as well as the implications of the latter on mental health issues, such as […]
  • Aspects of Social Work and Poverty In terms of work principle, both the poor working and the welfare poor have it to varying degrees, but it does not help them much because the only employment available is low paying and leads […]
  • Poverty and Its Effect on Adult Health Poverty in the UK is currently above the world average, as more than 18% of the population lives in poverty. In 2020, 7% of the UK population lived in extreme poverty and 11% lived in […]
  • Child Poverty in the United States The causes of child poverty in the United States cannot be separated from the grounds of adult poverty. Thus, it is essential to take care of the well-being of children living in poverty.
  • Poverty in New York City, and Its Reasons The poverty rate for seniors in New York is twice the poverty rate in the United States. New York City’s blacks and Hispanics have a much higher poverty rate than whites and Asians in the […]
  • Juvenile Violent Crime and Children Below Poverty The effect of this trend is that the number of children below poverty will continue to be subjected to the juvenile and criminal justice systems.
  • Poverty and Homelessness as Social Problem The qualifications will include a recommendation from the community to ensure that the person is open to help and willing to be involved in the neighborhood of Non-Return.
  • Discussion of the Problem of the Poverty To help prevent homelessness for the woman in question and her children, I think it would be essential to provide mental support for her not to turn to alcohol and drugs as a coping mechanism.
  • Poverty Effects and How They Are Handled Quality jobs will provide income to the younger people and women in the community. The focus on developing and facilitating small and medium-sized enterprises is a great strategy but more needs to be done in […]
  • Feminization of Poverty and Governments’ Role in Solving the Problem However, women form the greatest percentage of the poor, and the problem continues to spread. Furthermore, the public supports available are inaccessible and inadequate to cater for women’s needs.
  • Free-Trade Policies and Poverty Level in Bangladesh The purpose of this paper is to examine the way in which the end of the quota system and introduction of a free-trade system for the garment industry in Bangladesh has impacted on poverty in […]
  • Poverty and Risks Associated With Poverty Adolescents that are at risk of being malnourished can be consulted about the existing programs that provide free food and meals to families in poverty.
  • Poverty and Inequality Reduction Strategies Thus, comprehending the causes of poverty and inequalities, understanding the role of globalization, and learning various theoretical arguments can lead to the establishment of appropriate policy recommendations.
  • International Aid – Poverty Inc This film, the research on the impact of aid on the states receiving it, and the economic outcomes of such actions suggest that aid is a part of the problem and not a solution to […]
  • Poverty Effects on American Children and Adolescents The extent to which poor financial status influences the wellbeing of the young children and adolescents is alarming and needs immediate response from the community.
  • Progress and Poverty Book by Henry George George wrote the book following his recognition that poverty is the central puzzle of the 20th century. Thus, George’s allegation is inconsistent with nature because the number of living organisms can increase to the extent […]
  • Vicious Circle of Poverty in Brazil The vicious circle of poverty is “a circular constellation of forces that tend to act and react on each other in such a way that the country in poverty maintains its poor state”.
  • Global Education as the Key Tool for Addressing the Third World Poverty Issue Global education leads to improvements in the state economy and finances. Global education helps resolve the unemployment problem.
  • Poverty, Partner Abuse, and Women’s Mental Health In general, the study aimed at investigating the interaction between poverty and the severity of abuse in women. The research question being studied in this article is how income intersects with partner violence and impacts […]
  • America’s Shame: How Can Education Eradicate Poverty The primary focus of the article was global poverty, the flaws in the educational system, as well as the U.S.government’s role in resolving the problem.
  • Global Poverty and Ways to Overcome It These are some of the strategies, the subsequent application of which would significantly reduce the level of poverty around the world.
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  • Why Does Poverty Persist in Rural Ethiopia?
  • Who Became Poor, Who Escaped Poverty, and Why?
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  • Section 2: Arguments For and Against Income Inequality

Advantages of Income Equality

Advantages of a system of income equality are

1. Less use of natural resources. There is generally less use of natural resources and less conspicuous consumption as incomes and the standard of living in countries with equal incomes is lower.

2. More consumer satisfaction among the poor. Redistribution of incomes or wealth increases consumer satisfaction among the poor. A dollar to a poor person provides more satisfaction than it does to a rich person. Thus, taking a dollar from the rich and giving it to the poor increases satisfaction. The only caveat with this statement is that if equality leads to a low standard of living among all groups, there will be no money to distribute from the rich to the poor (there will be no rich).

3. More political equality. In a system of in equality, poor people generally have less political influence, because they have less opportunity to contribute to lobby groups, political fundraisers, and campaigns. When there is equality, the argument is that everyone has the same economic influence.

4. Fewer incentives for corruption and illegal activities for financial gain In an economic system in which incomes are low and more equally distributed (typically in a non-free market system), temptations to break the law for financial gain are less prevalent. In economies with higher levels of income inequality, the financial rewards for cheating and breaking the law (if the person or business is not caught) are greater. For example, if a person in a country with a high average standard of living knows that by breaking the law it can earn an additional $10 million, the temptation for this person to engage in this kind of behavior is great. With the ease of international cyber crimes these crimes can now be committed by persons from any country (even persons who live in countries with non-free markets and/or a more equal distribution of incomes).

Advantages of Income Inequality

Advantages of a system of unequal incomes in a free market economy are:

1. Greater incentive to work hard. Inequality as a result of a free market economy provides incentives to work harder and more efficiently, as the rewards are generally greater. This leads to more economic growth, increases a nation’s wealth, and raises a country’s overall standard of living (including for the lower income households).

2. Greater savings and investments. Inequality permits greater savings, because there are more wealthy income earners. Higher-income earners save more than lower-income earners. Greater savings frees up capital for businesses to borrow funds for more investments into technology and capital expansion.

3. More high-quality and innovative products. A nation with a higher standard of living has more opportunity to stimulate the production of new, high-quality, innovative products. These new products initially are usually sold at high prices, but eventually come down in price as technology improves and mass production leads to cost of production decreases. This means that eventually lower income households can also afford to buy these products (for example, televisions, smart phones, computers, and soon, electric vehicles).

4. More resources. A higher standard of living allows a country to better help needy persons. There are more jobs, and average earnings are higher. There are also more people who can afford to and will give to charities. In addition, government tax revenue is higher, so there are more resources for a country’s essential spending, such as defense, providing for a legal system, infrastructure, education, health care, and curbing pollution.

The Incentive to Work and Innovate

In industrially developed countries, entrepreneurs such as Henry Ford, JP Morgan, Andrew Carnegie, Thomas Edison, John D. Rockefeller, and more recently, Apple’s Steve Jobs, Microsoft’s Bill Gates, Facebook and Instagram’s Mark Zuckerberg, Blog guru Ariana Huffington, television entrepreneur Oprah Winfrey, music legends Jay Z and Beyonce, Amazon’s Jeff Bezos, Google’s Larry Page and and Sergey Brin, and many others have helped to advance our economy and standard of living through their inventions in various industries. In large part, they were motivated to do this because of the rewards associated with their efforts. This may seem selfish, but they have also helped many others live more comfortably and obtain jobs. Ayn Rand wrote about the virtues of this selfishness in her bestseller “Atlas Shrugged”. Adam Smith’s invisible hand concept describes that the selfish efforts of each entrepreneur and each worker not only contributes to this person’s own well-being, but also to the well-being of the economy as a whole. In order to keep taxes reasonably low and optimize the incentive to work and innovate, both Ayn Rand and Adam Smith opposed extensive government welfare programs. Instead, they supported the idea of voluntary charity donations to help those in need.

11 Comments

Madi

This is a little misleading with regards to the first point made because some income equality will raise standard of living as is seen with the fact that many northern European countries have higher standards of living and lower income inequality than America

Naomi

Yeah, I get that. However, most countries in Europe are socialist. Socialism drives countries/people to focus on promoting equality among the population. Here in America, we have freedom. Are people willing to sacrifice freedom to get perfect income inequality or have better health care, or better education, etc.

Jj

You think you have freedom in the US? Clearly you have never lived and worked in Europe? The US is a relative bin fire in comparison. Check out the life expectancy stats…

pooface

yes very cool my man

John Bouman

Thank you for your comments, Poo, JJ and Naomi.

Madi, thank you for your comment. If you take a look at Sweden you will learn that during the time that Sweden was mostly free market, its economy grew considerably. When Sweden turned socials about 4 decades ago, they began to stagnate, incomes declined and poverty rose; about a decade and a half later they realized that they had become too socialist and they changed their system to become much more capitalist. The business climate in Sweden and other Scandinavian countries is quite capitalist with fewer regulations and during most years lower tax rates than the United States. Countries in Europe that have not adopted free market principles (for example, France, Spain, Greece) have struggled with unemployment rates double that of the United States. What is helping Europe is that the education system there (due to school choice) is far superior to the one in the United States.

jeffbbybyre hbhbbmo

can someone tell me how wealth has benefited society

Thanks for your comment, Jeff. If you define wealth as purely material things you can make the argument that people like material things (such as food, transportation, houses, entertainment gadgets, etc.) and this then benefits society. Having these material things doesn’t guarantee happiness of course. Other conditions have to be in place for that. However, I would think that most people are happier with the material things I mentioned than without it.

welsh

I’m doing a paper on economical gap and I need help, can you tell me why it’s a good thing?

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  • Introduction
  • Section 1: United States Income Distribution
  • Section 3: Poverty
  • Section 4: Government Anti-Poverty Programs
  • Section 5: Progressive, Regressive, and Proportional Taxes
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Poverty and Inequality: Our Ethical Challenges

By: Taro Komatsu

February 17, 2015

Technology, Values, and Development

About the Author

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Taro Komatsu

Poverty and Economic Inequality

Introduction.

Poverty and economic inequality are complex issues that continue to be prevalent in many parts of the world, even in countries where economies are expanding. The gap between the wealthy and the poor continues to widen, which has negative consequences for individuals, communities, and society (Gornick, 2022). It is crucial to understand the root causes of poverty, including limited access to education and employment opportunities, and to implement policies that promote income equality and distribute wealth more equitably. In particular, poverty and economic inequality disproportionately impact marginalized communities, such as women, people of color, and indigenous peoples (Gornick, 2022). These populations are often more likely to experience poverty, be denied access to essential services and resources, and be subjected to discrimination and mistreatment. The World Bank’s report, “The State of the World’s Poor,” reveals that over 700 million people lived in severe poverty in 2013, with most of the poor residing in South Asia and sub-Saharan Africa (Gornick, 2022). The report also shows that inequality has grown in several countries, with the top 10% of the population earning 11 times more than the poorest 40% (Gornick, 2022). Despite progress in reducing poverty in some countries, poverty and economic inequality remain pervasive problems globally, and it is crucial to understand the root causes, including limited access to education and employment opportunities, and implement policies that promote income equality and distribute wealth more equitably to address this issue (Kuhn et al., 2020). Therefore, poverty and economic inequality have been a problem in the United States for centuries, with the issue’s roots stretching back to colonial times. The first great wave of poverty and inequality in the United States occurred during the Industrial Revolution when the country experienced dramatic economic growth but, with it, a growing divide between the wealthy and the poor (Kuhn et al., 2020). As the Industrial Revolution continued, massive waves of immigrants from Europe and other parts of the world arrived in the United States in search of better economic opportunities (Kuhn et al., 2020). The influx of new immigrants created intense competition for jobs and resources, leading to increased economic inequality. In the early 20th century, the United States saw the emergence of a powerful labor movement that sought to improve the wages and working conditions of working-class Americans (Kuhn et al., 2020). Despite the labor movement’s efforts, wages and working conditions for the poor remained far below those of the wealthy. In the 1950s and 1960s, the United States experienced a period of economic growth, accompanied by a dramatic reduction in poverty and inequality (Kuhn et al., 2020). However, this period of growth was short-lived, as the late 1970s saw a resurgence of inequality as the economy began to decline in the decades since poverty and economic inequality became entrenched in the United States. It has become increasingly difficult for those born into poverty to escape it as the cost of living, and education continues to rise. It has created a cycle of poverty and inequality that is difficult to break. Poverty and economic inequality continue to be major problems in the United States, and the effects are felt in virtually every area of life. Economic inequality exacerbates existing racial and gender disparities, leaving some communities without access to necessities such as housing, education, and healthcare (Kuhn et al., 2020). It also reduces economic mobility, making it harder for individuals to climb the economic ladder and achieve success. The paper entails an argumentative essay that presents research relating the critical thinker to the modern, globalized world, focusing on poverty and economic inequality in the country, providing various perspectives from disciplines and researchers.

Perspective from various disciplines

Economists view poverty and economic inequality as a failure of the market system and an indication of a lack of economic opportunity (Lunstrum & Givá, 2020). They advocate for policies that increase economic growth, reduce taxes, and create jobs. Sociologists focus on the structural factors contributing to poverty and economic inequality, such as racism, sexism, and classism (Obayelu & Edewor, 2022). They argue that these structural factors must be addressed to reduce or eliminate poverty and economic inequality. Political scientists focus on the political factors contributing to poverty and economic inequality, such as laws and policies that favor the wealthy and powerful (Piff et al., 2020). They argue that these laws and policies must be changed to address poverty and economic inequality (Piff et al., 2020). Philosophers focus on poverty and economic inequality’s ethical and moral implications (Obayelu & Edewor, 2022). They argue that it is unjust and immoral for some people to have so much while others have so little. Anthropologists focus on the cultural factors that contribute to poverty and economic inequality, such as customs, beliefs, and values (Lunstrum & Givá 2020). They argue that these cultural factors must be addressed to reduce or eliminate poverty and economic inequality.

My proposed solution to poverty and economic inequality is implementing a universal basic income (UBI). A UBI is an economic system in which all citizens receive a regular, unconditional sum of money, regardless of their income level or employment status. By providing a regular, unconditional income to individuals, a UBI will help to reduce the economic disparities between the rich and the poor, as well as help to reduce the overall burden of poverty in society. From an economic perspective, a UBI can help to stimulate the economy by providing individuals with additional funds to spend on goods and services (Lunstrum & Givá, 2020). The, in turn, could result in a greater demand for goods and services, which could create new job opportunities and help to reduce unemployment. Therefore, by helping to alleviate the financial pressure on low-income families, a UBI could help to reduce the overall burden of debt and make it easier for those families to access credit, allowing them to make larger purchases such as a home or a car. From a social perspective, a UBI could help to reduce poverty-related social issues, such as crime and poor health outcomes (Lunstrum & Givá, 2020). By providing individuals with a reliable source of income, they would be more likely to invest in their education and skills, which could lead to better job opportunities. The extra income could help to reduce the burden of poverty on families and allow them to access better health care and nutrition, leading to improved overall health outcomes. However, from a political perspective, a UBI could help to reduce the burden of poverty on the government (Piff et al., 2020). By providing individuals with a regular income, the government could reduce its spending on welfare programs and social services, freeing up funds for other important initiatives. UBI could help to increase voter turnout, as individuals would have more disposable income to invest in their communities and participate in the political process.

Based on an environmental perspective, a UBI could help reduce resource overconsumption. By providing individuals with a regular income, they would be more likely to make more sustainable purchasing decisions and invest in renewable energy sources. It could reduce the overall environmental impact of consumption and help create new job opportunities in the renewable energy industry. Also, from a cultural perspective, a UBI could help to reduce economic inequality and promote social cohesion. Providing individuals with a reliable source of income would make it easier for them to access cultural activities and participate in their communities. It could lead to a greater appreciation for diversity and the

Annotated Bibliography

De Haan, J., & Sturm, J. E. (2017). Finance and income inequality: A review and new evidence.  European Journal of Political Economy ,  50 , 171-195.

In this study, De Haan and Sturm (2017) investigate how economics contributes to social stratification differences in disposable income. After reviewing the relevant literature, the authors thoroughly summarize the current empirical findings. The authors then provide fresh data from their studies to support the claim that financial factors significantly contribute to income disparity. They discovered that the highest earners, those in the top 10% of the income distribution, were the ones who benefited the most from more accessible access to financial resources. On the other side, research shows that lower incomes and more significant income disparity are linked to restricted access to financing. The authors also conclude that although financial development contributes to economic expansion, the advantages of this expansion are not shared equally. Instead, the rich disproportionately enjoy the advantages, contributing to growing economic disparity. The authors argue that measures to increase access to credit for low-income people are necessary to reduce poverty and economic inequality. Possible measures include promoting financial literacy, expanding access to credit, and launching new avenues for saving and investing. De Haan and Sturm’s (2017) results are consistent with earlier research that has revealed a significant correlation between financial factors and income disparity. Their essay, however, offers fresh and compelling evidence that tackling the link between money and inequality is crucial for ending poverty and fostering broadly shared economic growth.

Bourguignon, F. (2018). The world changes in inequality: An overview of facts, causes, consequences, and policies.  CESifo Economic Studies ,  64 (3), 345-370.

The paper by Bourguignon offers a wide-ranging survey of global inequality as it is now. The article first lays out inequality’s history, geographic distribution, and constituent diversity. The article explores the root reasons for inequality, including globalization’s influence, technological advancements, and government economic policies. The effects of inequality on poverty and health are also analyzed, as are the repercussions of inequality on economic development and social conflicts. The paper by Bourguignon contributes significantly to the discussion of how to end poverty and economic inequality. He stresses the need for policymakers to tackle the inequality issue and offers several policy recommendations for progressive song taxes, transfer payments, schooling, and active labor market policies. The article summarizes the current knowledge on the issue of inequality by drawing on a wide variety of information from academic literature and empirical investigations. It links to previous works by recommending policies based on research and underlining the connection between inequality and economic development, poverty alleviation, and social stability.

Dabla-Norris, M. E., Kochhar, M. K., Suphaphiphat, M. N., Ricka, M. F., & Tsounta, M. E. (2015).  Causes and consequences of income inequality: A global perspective . International Monetary Fund.

The paper by Dabla-Norris et al. (2015) summarizes the statistics and reasons for income inequality worldwide. Using statistics and studies, the authors investigate the effects of tax and transfer systems and the power of labor market institutions on income disparity and economic development. The essay contributes to the issue of resolving poverty and economic inequality by providing a thorough grasp of the causes and effects of income disparity and stressing the possible role of policies in lowering income inequality. Even though there is no silver bullet, the authors conclude that tax and transfer systems, labor market regulations, and investments in education and training may all assist in bringing down income disparity. The article’s thorough overview of poverty and economic inequality is supported by a wealth of data and research, making it an invaluable resource for anyone investigating these issues. The author’s incorporation of data from other nations and analysis of the interplay between numerous variables and income inequality enrich the current literature and provide light on the genesis and impact of this social ill.

Validity of the research

The research on poverty and economic inequality is valid because it is based on accurate information from reliable sources. However, the researcher’s biases may affect the research’s validity. For example, researchers may be more likely to focus on the negative effects of poverty, such as poor living conditions, and overlook the positive aspects of poverty, such as access to education and healthcare. The reliability of the research on poverty and economic inequality largely depends on the quality of the data sources. Sources such as census data, surveys, and official reports are generally considered reliable, based on accurate information gathered from various sources. However, research based on anecdotal evidence or personal accounts may be less reliable, as these sources are more prone to bias or inaccuracy. There are several potential biases in research on poverty and economic inequality. For example, researchers may focus too heavily on poverty’s negative aspects and overlook the positive ones. Additionally, researchers may have preconceived notions about what causes poverty and economic inequality, which can lead to bias in their conclusions. The strengths of research on poverty and economic inequality lie in its accuracy and reliability. Data sources such as census data, surveys, and official reports are generally considered reliable and provide a comprehensive overview of poverty and economic inequality. Additionally, researchers can draw on various sources to examine the causes and effects of poverty and economic inequality. The weaknesses of research on poverty and economic inequality lie in its potential for bias. Researchers may have preconceived notions about what causes poverty and economic inequality, which can lead to bias in their conclusions. Research-based on anecdotal evidence or personal accounts may be less reliable, as these sources are more prone to bias or inaccuracy. One of the main limitations of current research on poverty and economic inequality is that it often focuses on the negative aspects of poverty and overlooks the positive aspects. The research is often limited to certain geographic areas or populations, leading to an incomplete understanding of the causes and effects of poverty and economic inequality. Further research is needed to understand the causes and effects of poverty and economic inequality. Researchers should examine the issue from various perspectives and consider both the positive and negative aspects of poverty. Thus, research should include a wider range of geographic areas and populations to understand the issue comprehensively.

Poverty and economic inequality are complex issues that are difficult to tackle in the United States. Clearly, poverty and economic inequality are deeply entrenched in the US economy and have been shaped by various factors. The economic policies of the past few decades have widened the gap between the wealthy and the poor and have exacerbated existing problems. The federal government must take action to address poverty and economic inequality, and a comprehensive approach to address these issues is needed. Investing in education and job training, providing access to health care and other social services, and creating economic opportunities for individuals and families are just a few of the steps that can be taken to reduce poverty and economic inequality in the United States.

Gornick, J. C. (2022). Income inequality and income poverty in a cross-national perspective.  Institute for Fiscal Studies . https://ifs.org.uk/inequality/wp-content/uploads/2022/10/Income-inequality-and-income-poverty-in-a-cross-national-perspective-IFS-Deaton-Review-of-Inequalities-1.pdf

Kuhn, M., Schularick, M., & Steins, U. I. (2020). Income and wealth inequality in America, 1949–2016.  Journal of Political Economy ,  128 (9), 3469-3519.

Lunstrum, E., & Givá, N. (2020). What drives commercial poaching? From poverty to economic inequality.  Biological Conservation ,  245 , 108505. https://www.sciencedirect.com/science/article/pii/S0006320718317658

Obayelu, A. E., & Edewor, S. E. (2022, December 28). Economic Inequality and Poverty Dynamics: What does Literature tell us?  International Journal of Social Sciences and Economic Review , 21–31. https://doi.org/10.36923/ijsser.v4i4.166

Piff, P. K., Wiwad, D., Robinson, A. R., Aknin, L. B., Mercier, B., & Shariff, A. (2020). Shifting attributions for poverty motivates opposition to inequality and enhances egalitarianism.  Nature Human Behaviour ,  4 (5), 496-505. https://www.nature.com/articles/s41562-020-0835-8

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Home — Essay Samples — Economics — Income Inequality — The Causes, Consequences And Solutions Of Income Inequality

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The Causes, Consequences and Solutions of Income Inequality

  • Categories: Economic Inequality Gender Wage Gap Income Inequality

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Published: Mar 18, 2021

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  • In 2010, the employment rate had stood at about 73% being those with an associate’s degree, then in 2017, rose to about 78% for those with a higher level of education.
  • Having high education would NOT always guarantee an increase in income.

Works Cited

  • “The Gender Wage Gap: 2018 Earnings Differences by Race and Ethnicity.” Institute for Women's Policy Research, iwpr.org/publications/gender-wage-gap-2018/.
  • “How Immigration Makes Income Inequality Worse in the US.” USAPP, 16 Oct. 2015, blogs.lse.ac.uk/usappblog/2015/10/14/how-immigration-makes-income-inequality-worse-i n-the-us/.
  • “Immigration and Rising Income Inequality.” Federation for American Immigration Reform, www.fairus.org/issue/publications-resources/immigration-and-rising-income-inequality.
  • “Mass Immigration and the Growth of Inequality • Social Europe.” Social Europe, 8 Jan. 2019, www.socialeurope.eu/mass-immigration-growth-inequality.
  • McCarthy, Niall. “Income Inequality Between White And Black Americans Is Worse Today Than In 1979 [Infographic].” Forbes, Forbes Magazine, 21 Sept. 2016, www.forbes.com/sites/niallmccarthy/2016/09/21/income-inequality-between-white-black- americans-is-worse-today-than-in-1979-infographic/#53d81f223740.
  • “The NCES Fast Facts Tool Provides Quick Answers to Many Education Questions (National Center for Education Statistics).” The National Center for Education Statistics (NCES) Home Page, a Part of the U.S. Department of Education, nces.ed.gov/fastfacts/display.asp?id=77.
  • Rogoff, Kenneth, et al. “The Link between Immigration and Inequality.” The World Economic Forum, www.weforum.org/agenda/2015/05/the-link-between-immigration-and-inequality/.
  • Sepúlveda, Magdalena. “ Economic Inequality and Taxation Are Feminist Issues.”
  • Common Dreams, 1 Mar. 2019, www.commondreams.org/views/2019/03/01/economic-inequality-and-taxation-are-femini st-issues.
  • Shaer, Matthew. “The Archaeology of Wealth Inequality.” Smithsonian.com, Smithsonian Institution, 1 Mar. 2018, www.smithsonianmag.com/history/aracheology-wealth-inequality-180968072/.
  • “Taxes, Inequality & Growth Archives.” Equitable Growth, equitablegrowth.org/issue/taxes-inequality-growth/.
  • “The Distribution of Wealth in the United States and Implications for a Net Worth Tax.” Equitable Growth, 20 Mar. 2019, equitablegrowth.org/the-distribution-of-wealth-in-the-united-states-and-implications-for-a- net-worth-tax/.
  • “The Effects of Taxes and Benefits on Income Inequality: 1977 to Financial Year Ending 2015.” Office for National Statistics, www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomea ndwealth/bulletins/theeffectsoftaxesandbenefitsonincomeinequality/1977tofinancialyearen ding2015.

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poverty and income inequality argumentative essay

Income Inequality and Poverty essay

Poverty can be defined as lack of proper essential services and good. Both income inequality and poverty negatively affect not only economic growth of the USA, but it affects population mentality. Economic development is the primary source of nation’s wealth in the USA, but social and income inequality is inevitable part of every society. Actually, it is rapid economic development that drives social inequality. The number of people living beyond the poverty line is decreasing, but still is present.

The current situation is the following: the rich are becoming richer due to swift development, though the poor failed to share the benefits of economic growth and the gap between them has widened. Income inequality is caused by different abilities of people to succeed, opportunities to receive good education or enter professional training programs. Other causes are discrimination (according to statistics, non-Americans are paid less than native population), different preferences and risks, unequal distribution of wealth in the country, market power, etc.

Personal factors are also of importance: misfortune, luck, favorable position in society and connections. All these factors have led to widen gap between the rich and the poor. Since 1970s the number of American families living in poverty has risen over. The main reasons of growing inequality are: demand for skilled workers and professionals, demographic changes, prosperity of international relations and trade, decline of unionism, and increased number of illegal immigrants. In 2004 the official poverty rated was reported 12. 7 percent compared with 12. 5 in 2003.

It means that more than 37 million people are living in poverty and the figure is increasing with years passed. The poverty rate for children under full age was 17. 8%, though the number of children living in severe poverty was the same as in 2003 – 13 million. The poverty rate for children under full is significantly higer than that of adults (11. 3) and people over 65 (9. 8%). For Example, in 2004 the official poverty rate for non-Americans was the following: African Aamericans – 24. 7%, Hispanics – 21. 9 %, non-Hispanic Whites – 8. 6%, Asians – 19. 8%

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Speaking about possible solutions to poverty it is necessary to make efforts aiming at normal employment, gaining necessary skills and establishing personal values such as honesty, organization and cleanliness. The government has to implement income-maintenance systems: social security programs, social security, Medicaid, unemployment benefits, public assistance, food-stamp program, etc. It is necessary to establish charity trusts and, for example, to introduce tax deductions on charity. It is important to educate population that poverty isn’t inevitable and to make them accept the principle that they are able to fight.

Other solutions to eliminate poverty in the USA are: ? Development of affordable housing and promotion of urban regeneration ? Affordable education and health care services ? Generating more employment and helping in finding jobs ? Encouraging social work and political participation ? Raising the minimum level of education ? Presenting concrete governmental prosperity programs ? Establish and supporting research institutions, voluntary organizations and agencies In order to eradicate poverty government should declare that it has no rights to keep population poor.

Government should also subsidize employment for elder people and for those who have difficulties in finding work. Furthermore, government should introduce curriculum aiming at explanation that poverty can be avoided and at explaining the ways out. It is necessary to devise and introduce programs exactly to all sectors which are responsible for eradicating poverty. For example, the programs can involve craftsman training schools, farm schools, adult education, ideas for commerce how to decrease poverty rates, etc.

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poverty and income inequality argumentative essay

The Hardships and Dreams of Asian Americans Living in Poverty

Illustrations by Jing Li

Asian Americans are often portrayed as economically and educationally successful.

In reality, about one-in-ten Asian Americans live in poverty. Asian Americans also have the most income inequality of any major racial or ethnic group in the United States.

Without closely examining the diversity of Asian American experiences, it’s easy to miss the distinct stories of Asian Americans living with economic hardship.

To understand more about this population, Pew Research Center conducted 18 focus groups in 12 languages to explore the stories and experiences of Asian Americans living in poverty.

Table of Contents

Of the 24 million Asians living in the United States, about 2.3 million live in poverty . Many are working to overcome the economic hardships they encounter and achieve their American dream. But they face challenges along the way, from Asian immigrants grappling with language barriers to U.S.-born Asians navigating pathways to success.

In February 2023, Pew Research Center conducted 18 focus groups with adult participants from 11 Asian origin groups in different regions across the U.S. These are among the most likely Asian origin groups to experience economic hardship in the U.S. Focus groups included those whose approximate family income is at or below 140%-250% of the 2022 federal poverty line, depending on their location. Accompanying these focus group findings are results from a Pew Research Center survey about the hardships and dreams of Asians living in poverty, conducted from July 2022 to January 2023.

Some common themes that focus group participants shared include day-to-day financial difficulties, assumptions by others that they do not need help because they are Asian, and the importance of financial security in achieving the American dream.

Related:   1 in 10: Redefining the Asian American Dream (Short Film)

Focus groups also reveal that Asian Americans’ experiences with economic hardship differ by whether they were born in the U.S. or outside the country. Some immigrants not only experience difficulties making ends meet, but also face challenges that come with living in a new, unfamiliar country. These include learning English, navigating daily life in a new place and finding a stable job.

Even though U.S.-born Asians grew up in this country and speak English, they talk about the challenges of understanding what it takes to succeed in America. This includes getting the “right” education, getting access to the “right” knowledge and knowing the “right” people to succeed.

The findings in this data essay reveal what participants shared about their experiences with economic hardship, overcoming challenges, and their views of the American dream and social mobility in America.

The terms Asians and Asian Americans are used interchangeably throughout this data essay to refer to those who self-identify as Asian, either alone or in combination with other races or Hispanic identity.

The terms living in poverty, living near or below the federal poverty line and living with economic hardship are used interchangeably throughout this essay to refer to adults whose family income is close to or below the 2022 federal poverty line.

  • For results on Asian adults from the focus groups, this refers to adults whose approximate family income is at or below 140%-250% of the federal poverty line. Thresholds varied by focus group recruitment locations to account for differences in the cost of living.
  • For results on Asian adults from the survey , this refers to adults whose approximate family income falls at or below 100% of the federal poverty line.
  • For data on the total U.S. Asian population from the U.S. Census Bureau , this refers to all Asian Americans whose family income is at or below 100% of the federal poverty line.

The terms federal poverty line and poverty line are used interchangeably to refer to the federal poverty guidelines published yearly by the U.S. Department of Health and Human Services.

The term U.S. born refers to people born in 50 U.S. states, the District of Columbia, Puerto Rico or other U.S. territories.

The term immigrant refers to people who were born outside the 50 U.S. states or the District of Columbia, Puerto Rico or other U.S. territories.

Asian Americans and financial struggles

Financial difficulties are part of many Asian Americans’ day-to-day lives, according to the 2022-23 survey. Asian adults were asked if they had experienced any of the following financial challenges in the past 12 months: gotten food from a food bank or a charitable organization, lost their health insurance, had problems paying for their rent or mortgage, had trouble paying for medical care for themselves or their family, had trouble paying their bills, or been unable to save money for emergencies.

poverty and income inequality argumentative essay

“It got really bad to the point where a simple bowl of rice, we weren’t even able to afford that. So there were times where a bowl of rice would be a meal for all three meals, or we just simply did not eat.” NOLAN , FILM PARTICIPANT

The most common financial difficulty experienced is being unable to save for emergencies. More than half of Asian adults living in poverty (57%) said this had happened to them. By comparison, fewer Asian adults living above the poverty line (40%) said this.

Note: “Asian adults living in poverty” refers to survey respondents whose approximate family income is at or below 100% of the federal poverty line. Share of respondents who didn’t offer an answer or answered “no” not shown.

Source: Survey of Asian American adults conducted July 5, 2022-Jan. 27, 2023. “The Hardships and Dreams of Asian Americans Living in Poverty”

Some focus group participants shared how challenging it was for them to save because of their earnings and their family needs. Participants also talked about the urgency they feel to save for their children and retirement:

“I feel a bit helpless [about my financial situation]. … I don’t want to be in debt. I have to save money to raise my kids, but I don’t have money to save.”

–Immigrant man of Korean origin in early 30s (translated from Korean)

“[I save money] to go to Pakistan. Because I have four children … I needed five or six tickets, in case my husband traveled with us, and it required a lot of money. We used to save for one whole year, and when we were back from Pakistan, we were usually empty-handed. Then the cycle started again.”

–Immigrant woman of Pakistani origin in late 40s (translated from Urdu)

“You’re not going to work forever. No one is going to work forever. You want to have savings … for your rent [or] in case of medical bills [if] something happens. [You] might as well [save for] some trips down the while when you [can] travel still. But you’re not going to be working at 80 years old, are you?”

–U.S.-born man of Chinese origin in early 40s

poverty and income inequality argumentative essay

“We were all four of us in one apartment, four siblings, plus the parents, so that’s six people in a house, which was very, very cramped.” SABA , FILM PARTICIPANT

Other common difficulties for Asian Americans living near or below the poverty line include having trouble paying their bills (42%), needing to get food from a food bank or a charitable organization (38%) and having problems paying their rent or mortgage (33%), the survey found. Smaller shares of Asian adults living above the poverty line say they experienced difficulties paying their bills (17%), got food from a food bank or a charity (6%) or had trouble paying their rent or mortgage (11%).

These findings were echoed in our focus groups, where participants recalled the stress and tension their families felt when things like this happened to them:

“My dad lost his car a couple of times. There was this one time where I remember it was nighttime. All of a sudden, a cop comes over to our home [with another person]. … And my dad was forced to give up his car to this stranger … because, I don’t know, he wasn’t paying off the car or something. And it was very humiliating, and my brothers wanted to get physical with that person because he was acting very arrogantly. My dad was able to eventually pay back the car and somehow get it back. But there were many times when we might not have had a roof over our heads.”

–U.S.-born man of Pakistani origin in late 20s

Asian immigrants face challenges navigating life and employment in the U.S.

Immigrant and U.S.-born Asians experience economic hardship in different ways. Asian immigrants in the focus groups discussed how a lack of English proficiency, navigating transportation and getting a good job all shape their experiences with economic hardship.

poverty and income inequality argumentative essay

“I felt sad about life, didn’t know the language, didn’t know the roads. I had no friends, so I felt very sad.” PHONG , FILM PARTICIPANT (TRANSLATED FROM VIETNAMESE)

For example, not knowing English when they first arrived in the country created extra challenges when using local transportation systems and meeting basic daily life needs such as shopping for groceries:

“When we were very young, the most difficult thing we faced [after coming to the U.S.] was not being able to speak the language. Unless you lived in those times, you wouldn’t know. We didn’t know how to buy food. … We didn’t know the language and there was no interpreter available. … I didn’t know how to take the bus, I didn’t know where to go, or to which place they were taking me to school. When we were asked to go to the classroom, we didn’t know where to go. … There was no other way, because there was no communication.”

–Immigrant woman of Hmong origin in late 50s (translated from Hmong)

Language barriers also brought extra hurdles for Asian immigrants in the job market. Some focus group participants said it was hard to explain their skills to potential employers in English effectively, even if they had the relevant education or skills for the job and had learned English before they immigrated:

“After coming [to the U.S.], there were many problems to face, first … the language problem. We have read English … but we are not used to speaking. … We also had education … but since we can’t explain ourselves in English – what we can do, what we know … we are getting rejected [from jobs] as we cannot speak. … Another problem was that I had a child. My child was small. I could not go to work leaving him. At that time, my husband was working. He also had the same thing – he had education, but he could not get a good job because of the language. [As another participant] said, we had to work below the minimum wage.”

–Immigrant woman of Bangladeshi origin in late 30s (translated from Bengali)

Not wanting to be a burden influenced life choices of many U.S.-born participants

For many U.S.-born focus group participants, concerns about being a burden to their families shaped their childhoods and many of their life decisions:

“It’s difficult to talk to [my parents] because you grew up here and it’s just totally different from them growing up in Vietnam. … It’s the same like what [another participant] was saying, when you take off the burden to your parents, right? So I dropped out of college, just because I didn’t want them paying anymore. I just didn’t think that I was going to do or be anything in college, right? So I would rather work. So I started taking responsibility of my own and you start working really hard and you getting out of the house and helping them pay for bills.”

–U.S.-born man of Vietnamese origin in mid-40s

“My family’s struggling. Is education more important, [or] is working more important? I really felt that growing up because a lot of my friends, education – going to college and going to a techno school – wasn’t really on their radar, it wasn’t really something on their plan. I think talking to a lot of the folks and a lot of my friends during their time, they felt like they had to grow up to provide for their family or for you to find some type of income to kind of help their family. And so that really drove the direction of at least one of my friends, or a lot of my friends.”

–U.S.-born man of Hmong origin in mid-30s

Some U.S.-born focus group participants said that when reflecting on their childhoods, they could see the financial burden they had on their families in a way they did not realize as a child:

“At a certain point you become very aware of how much of a financial burden you are. You don’t ask for anything you want. Like, you don’t ask for prom. You don’t ask to join clubs. You don’t ask to go on field trips, things like that. You just know that it’s going to cause so much drain on your parents.”

–U.S.-born woman of Vietnamese origin in mid-20s

“[My parents] had like a lot of responsibilities, like … giving money back to their father, and then their sisters and brothers, helping them out back [in Pakistan]. … [My father] had to support us and then send money back constantly there. I didn’t know that until now, basically. … We would hardly see him. Maybe like on Sunday, we would see him a couple of hours. But it was on the weekdays, we would hardly see our father. He was always working.”

–U.S.-born woman of Pakistani origin in early 30s

Overcoming economic challenges

The survey found that when Asian adults living in poverty have needed help with bills, housing, food or seeking a job, about six-in-ten (61%) say they’ve turned to family or friends.

Some focus group participants mentioned that families and friends in their ethnic community were a great source of financial help. For others, the limited size of their ethnic community in the U.S. posed obstacles in obtaining assistance.

poverty and income inequality argumentative essay

“My dad arrived in the U.S. when he was 26 years old, and I’m now 29 years old. … I have seven siblings and my parents who support me. And my parents didn’t have that, they didn’t have their parents to support them.” TANG , FILM PARTICIPANT

“It was very difficult during [my] study [at university]. … I had a scholarship, most of the part was scholarship; however, I had to pay something between $10,000 and $15,000 per semester. And I had to eat, I had to pay rent, I had to do everything. At the same time, there are many other things too, aren’t there? And there was always a stress about money. This semester is over now, how do I pay for the next? I had no clarity about what to do and not to do. In that situation, I approached those friends studying there or who came there a little earlier and were working to borrow money. … I [was] offered help by some friends and in finding a job and being helped for my needs.”

–Immigrant man of Nepalese origin in early 40s (translated from Nepali)

“We didn’t have a large Burmese community to ask for such help. It was not yet present. As we had no such community, when we had just arrived, we told close friends, got directions and went to ask for help.”

–Immigrant woman of Burmese origin in late 40s (translated from Burmese)

However, not all Asians living with economic hardship have asked for or received help. In the focus groups, participants shared why they or their families sometimes did not do so or felt hesitant. Fear of gossip and shame were mentioned multiple times:

“[I experienced financial difficulties after I first arrived in the U.S.] because I came here as a student. … It’s because I had to pay monthly rent and I paid for living expenses. I felt a little pressured when the monthly payment date approached. I had no choice but to ask my parents in Korea for money even as an adult, so I felt a sense of shame.”

–Immigrant woman of Korean origin in early 40s (translated from Korean)

“My cousin will [help me financially] without judgment. But, like, my aunt and elders – if it gets back to them [that I asked for help], it’s going to for sure come with judgment. And if I could figure it out myself, I will take the way without judgment.”

“To add on to what [another participant] said, if you go to the community [for help] or whatever, you know, by tomorrow everybody’s going to know it’s your problem.”

–U.S.-born woman of Pakistani origin in early 40s

Immigrants who came to the U.S. because of conflict are more familiar with government aid programs

Asian immigrants come to this country for a variety of reasons. In the focus groups, immigrant participants who came to the U.S. due to conflict or war in their origin countries referenced government assistance programs more often than those who came for other reasons.

This reflects a broader pattern among Asian immigrants overall: Those who came because of conflict or persecution have turned to federal, state or local governments for help with living expenses or employment more often than immigrants who came for economic or educational opportunities, according to the survey.

Focus group participants reflected on differences in the amount of government help available. Sometimes, they expressed a sense of unequal treatment:

“Vietnamese have this program where people got sponsored because of the war. So for other Asians, they feel that we are more privileged. Because from what I know, the Koreans and the Japanese, they must have money in order to come to America. As for us, we can come here through the refugee program, we can come here through the political program. They feel that we got more preferential treatment than other Asians in that regard.”

–Immigrant man of Vietnamese origin in early 40s (translated from Vietnamese)

“During the pandemic, I had to go through housing assistance and everything [to pay my rent]. Something like that with EBT [Electronic Benefits Transfer], how they send you stimulus checks. Korea doesn’t have any of that stuff.”

–U.S.-born woman of Korean origin in late 40s

“I think my community is relatively traditional. Because 20 years ago, we went straight to Chinatown fresh off the plane [after immigrating]. I still remember being in [the local] hospital, lots of social workers were there to help out, including with a medical insurance card, and applying for service, most importantly medical insurance. We all went to [the same] street. We relied on other Chinese people.”

–Immigrant man of Chinese origin in late 30s (translated from Mandarin)

Family ties contribute to increased awareness of government programs. For example, when asked how they learned about using government programs for help, some U.S.-born participants said:

“[I learned about the government programs from] my parents. I had to translate for them.”

–U.S.-born woman of Cambodian origin in mid-30s

“I was working at [a smoothie shop], and I was 17 and a half. … My college loan was like $50,000 [and I was] making $12.50 [an hour], how the hell am I supposed to be paying that month to month? Because my month-to-month was damn near $300, $500. My $12.50 an hour does not even cover for it, any of it, whatsoever. And, you know, me [having] been kicked out of home … I was living with my aunt. … I don’t want to burden her. So I had to go and ask her. She told me, ‘Hey, you should go and apply for food stamps.’”

–U.S.-born woman of Laotian origin in mid-30s

U.S.-born and immigrant focus group participants hold different views on education’s role in achieving a better future

poverty and income inequality argumentative essay

“My friend, he started out at internship … I was too naive. I was laughing at the time, like, ‘Man you spend your time? You took buses there every day? No pay?’ … I just didn’t know the big picture behind [it]. I wish I could plan for [it] just like how they did.” PHUOC , FILM PARTICIPANT

Reflecting on what could lead to success and achieving the American dream, focus group participants who were born in or grew up in the U.S. emphasized the value of getting connected to the “right” opportunities:

“[You don’t have] to go to school to be successful. I mean, they say there are people who are book smart and just people who are street smart, you know. [As long as you] grow up and you know the right people … networking on the right people to get into things. Or, you know, the right people to do the right things to get to where you want to be in life.”

–U.S.-born man of Hmong origin in late 20s

Other participants said it would have helped if their families had a deeper understanding of how the education system prepares them for good careers:

“I feel if my parents were educated and they could have guided me in the right direction [for college] – although, they tried their best. I’m not blaming them. But, you know, if I had someone of a more academic background who knew the system … I will try my best to help my daughter out in college or help her choose what her major is going to be. [My parents couldn’t provide] that kind of help that really helped me in choosing my major. … And so I think just the background that we come from was not the best – or not having the full grasp of this system. … Versus someone who’s had parents here for multiple years, and their parents are now telling them, like, ‘Hey, this is not the right decision for you. Try doing this. This will be better in the long run.’”

–U.S.-born man of Pakistani origin in early 30s

Some also said firsthand knowledge of how to invest and how the U.S. financial system works would have helped:

“[In] the newer generation, we have access to learn all the things we need to, right? [I watch videos] that talk about, like, ‘These are the things you need to do in order to be financially successful. You need to invest your money, get into stocks,’ and stuff like that. And I know that not even 1% of my Hmong community knows anything about that stuff. … So I think we can be more financially successful, including myself, if we were to look more deeply into those things.”

–U.S.-born woman of Hmong origin in late 20s

“If you’re educated and know how, like, let’s say investments work, if you know how that’s done and then you apply it actually going through [someone] like investors or even stockbrokers, then you’ll see the fruits of your labor, or at least experience that, as opposed to not even having the knowledge or even the experience to begin with.”

–U.S.-born man of Cambodian origin in mid-30s

Some participants shared that even when they have some knowledge of financial institutions, they feel the system is working against them:

“I think systematic racism [is a barrier to achieving the American dream]. … I mean, if you own a car, you got to get the bank to approve you. … And they charge people with, like, no credit the highest fee, the most percentage, which are a lot of the folks [like] us trying to achieve the American dream. And then we go to neighborhoods that have the highest crime rate, we also have the most premiums. … And so I think that, one, we’re paying a lot more with much less … the system [was] set up well before minorities, and I think we’re pretty much going to fall behind.”

Many focus group participants also see the value of education, especially a college one, in leading toward a better future and achieving the American dream:

“[When I think of the American dream, it means] if you work hard enough, you can succeed. … You can get an education or a higher education. Then you have so many choices here and exposure to so many ideas and concepts that you wouldn’t otherwise.”

poverty and income inequality argumentative essay

“The bachelor’s degree was important to me in the sense that I needed it so that I could apply for the jobs I wanted. … I guess it made things a bit easier.” THET , FILM PARTICIPANT (TRANSLATED FROM BURMESE)

But this sentiment resonated more with immigrant participants than those born in the U.S.:

“It is the education and the relevant knowledge I think that our Hmong people must have. We’ve been living in this country for the last 45 years. I think that to live in this country, it is very important for some people. I do not think everyone has a ‘lawyer’ or a ‘doctor’ in their house. If it happens, maybe we will reach our goal and the poverty will gradually disappear from our lives.”

–Immigrant woman of Hmong origin in mid-30s (translated from Hmong)

“I think if I obtain any degree, I would perhaps be able to do something.”

Assumptions about Asians hurt their chances of overcoming challenges

Participants shared that other people’s assumptions about Asians complicate their experience of living with economic hardship. Asians are often characterized as a “model minority” and portrayed as educationally and financially successful when compared with other groups.

Some participants shared how the assumption that all Asians are doing well hurt their ability to seek help:

“I have a daughter … she’s the only Asian in class. … Everybody tends to think, ‘She’s Asian; she’s so smart; her mommy has money. So you got to invite her to your birthday party because her mom is rich. [Her] mom will buy you a present.’ … I’m not rich, but because we’re Asian … she’s invited to all these parties.”

–U.S.-born woman of Hmong origin in early 30s

“What I can assume is that outside of our community, especially at the government level, [including] state level and central federal level here, we are missing out or not eligible for benefits. In their opinion, we are rich, no matter if we are working or not. [They may think] our stories may not be genuine. They may think we are making up a story [if we apply for benefits].”

Striving for the American dream

Freedom was a recurring theme in how focus group participants define their American dream. Two aspects were mentioned. The first was freedom from debt and stress over making ends meet, such as paying for everyday basic needs including rent and food. The second was the ability to make life choices freely without financial constraints, enabling them to live the life they aspire to.

Reaching the American dream

Half of Asians living near or below the federal poverty line say they believe they have achieved the American dream or are on their way to achieving it, the survey found. This includes 15% who say they have achieved it and 36% who say they are on their way. By comparison, among those living above the poverty line, 27% say they’ve achieved the American dream, and another 46% say they are on their way.

poverty and income inequality argumentative essay

“Before I came to America, I had never heard of the American dream. … But because I was able to at least bring my son along, not only my life but also his education has improved significantly.” THEIN , FILM PARTICIPANT (TRANSLATED FROM BURMESE)

Among focus group participants, many were optimistic about reaching the American dream for themselves:

“[To me, the American dream is] the opportunity to come to America. I’ve learned a lot after reaching here. And I’ve been able to help my parents and relatives. Despite facing some troubles here, I’ve [provided them a] little financial assistance. I would’ve been unable to help them if I had been in Bhutan.”

–Immigrant woman of Bhutanese origin in late 40s (translated from Dzongkha)

Some participants were also hopeful that the next generation can achieve their American dream, even when they themselves are not there yet:

“When I think about the American dream, I look back at myself, because I belong to the first generation that came to this country. We all started very late. I know that this country will help you, but really it will not be easy for us. … What I think will help me to be happy is to ‘reach the American dream.’ If I can’t achieve it, then I will support my children so that they can reach the dream and I will be happy with them. I will give my children money to help them study.”

“If I can’t get [the American dream] for myself, it is okay. No matter how I am, I’ve already reached half of my life. But I’ve done as much as I can do for [my children], so my responsibility is done. If it’s their turn, I believe they will be able to do all that I couldn’t. I believe it.”

poverty and income inequality argumentative essay

“I would like to own a home one day. And at this rate, and like many of my peers, that’s not a reachable goal right now. I don’t see it being a reachable goal for me for a very, very, very long time.” TANG , FILM PARTICIPANT

Still, the survey found that 47% of Asian adults living in poverty say the American dream is out of reach for them, higher than the share among those living above the poverty line (26%). Not all Asians living in poverty feel the same way about achieving the American dream, with U.S.-born Asians in the focus groups being less optimistic about reaching the American dream than immigrant Asians.

“In a certain era with the U.S. and the immigrants coming, the American dream [was] you come, you study, you do this, you can climb up the ladder, etc., etc. That was the big American dream. And I think there was a period where that was possible. Not any longer.”

Others also shared worries about their prospects of reaching the American dream because of different immigration histories and economic concerns such as inflation:

“I think I was conditioned to think too small to have the American dream. … Vietnamese Americans came over here at a very specific time. … There were Chinese Americans that came here like centuries ago, and they had the time to build generational wealth. We know that Vietnamese people came here in the ’70s. That’s not enough time to grow generational wealth.”

–U.S.-born woman of Vietnamese origin in late 20s

“I have kids. … They’re spoiled. … Now with inflation, houses are more expensive now [than 10, 20 years ago], right? Let’s say 20 years from now, when they buy a house, [the American dream] is going to be unachievable, you know what I mean? Like, unless they are a TikTok star or an entertainer or some kind. … [It’s] going to be tough.”

–U.S.-born man of Chinese origin in late 30s

Freedom from debt

For many participants, being debt-free is important to their vision of the American dream and promotes a life with more financial stability and independence:

“[If I could choose one dream in America, it would be to have] no debt. … When buying something, they always say, ‘Be careful, or you’ll be in debt.’ … And that is what got stuck in my throat.”

–Immigrant woman of Laotian origin in mid-30s (translated from Lao)

“[I haven’t achieved the American dream because I’m not] debt-free, you know, just trying to have extra money, instead of living paycheck to paycheck.”

“[My dream in America is] to be independent, for example, we always lived with the money of mom and dad. One is to be independent when you come here. Let me earn so much money that if I go to the store and buy something, I don’t even have to look at the price tag. That [is] my dream.”

–Immigrant woman of Nepalese origin in early 40s (translated from Nepali)

Participants shared that being debt-free also means having less stress and worry about making ends meet so that they can have extra resources and bandwidth to help their families:

“[The most important thing to achieving the American dream is] being debt-free and having real estate and income steadiness. … If you have rent income, you’re not trading in your time for money, so you have real estate. … You’re not stressing, you have time for your kids more, and your family. You’re probably a little bit happier.”

–Immigrant man of Cambodian origin in mid-20s

“The main thing is that I want to fully support my father and mother, and that I don’t have to worry about [how] I will support myself, or how I will pay my house rent. This is my number one.”

–Immigrant woman of Bangladeshi origin in late 20s (translated from Bengali)

For others, having a stable job is an important step to reaching the American dream:

“I want to have a job, and if I have a job, I’ll have money. I’m only working three and a half days a week right now, and I want to work more. I want more jobs the most, right now. I don’t need anything in America. Just a job.”

Freedom to dream

Focus group participants mentioned having the financial ability to not only meet their basic needs, but also pursue their dreams. Asians born in the U.S. mentioned the freedom to chase one’s aspirations without financial constraints more often than immigrants. Regardless of nativity, the ability to live the life they want is fundamental to many focus group participants’ definitions of the American dream:

“[When] everyone around you is immigrants and you’re all just trying to survive, the only thing you’re trained to think about is survival. But you’re not thinking about investment. Like, when you grow older and you start thinking, ‘Okay, I need to spend money to make money,’ that’s when you start thinking bigger. Yeah, I’m not just thinking about like having one home, I want 10 homes.”

“[Financial] stability is you have nothing but you could survive. [Financial] freedom is you have enough that you can do anything you want. That’s my financial freedom.”

poverty and income inequality argumentative essay

“As it was so hard at that time … what motivated you to keep going and work so hard?” “My strength, my mindset was I wanted to earn money so that my children could have a bright future.” PHUOC AND PHONG , FILM PARTICIPANTS (TRANSLATED FROM VIETNAMESE)

The American dream, to some focus group participants, is about more than financial achievements. Finding happiness and helping others, ultimately leading them to live the life they desire, are key parts of their American dream.

“I want to thank [another participant] for saying ‘self-actualization,’ because personally I think it’s really powerful to be able to know what you want. Because then you’ll know what kind of job you want, what kind of house you want, whether you want to be in politics or not. Like, loving yourself and understanding yourself to your core, then that will be the [deciding factor].”

–Immigrant man of Cambodian origin in early 40s

“I think for me [the American dream] is that there is a house for me, with no interest, I do not owe any loan, my parents could live there comfortably, their struggle is over, and also I have enough … to be able to do something for Pakistan later [in life], God willing.”

–Immigrant woman of Pakistani origin in mid-20s (translated from Urdu)

“[Some people define success as having] lots of money, kids, cars, right? But that’s not really … what I would consider success. Success is something that – does it make you happy? … Are you happy every day going to work? Does it make you happy? When you come home, are you happy?”

About this project

Pew Research Center designed these focus groups and survey questions to better understand the experiences of Asian Americans living with economic hardship. By including participants who are among the Asian origin groups most likely to experience poverty, the focus groups aimed to capture, in their own words, their experiences and challenges in America today. The discussions in these groups may or may not resonate with all Asians living in poverty in the United States.

The project is part of a broader research portfolio studying the diverse experiences of Asians living in the U.S.

Survey and demographic analysis of Asians living in poverty

For a comprehensive examination of Asian adults’ experiences with economic hardship from Pew Research Center’s 2022-23 survey of Asian Americans, as well as a demographic analysis of the U.S. Census Bureau’s 2022 American Community Survey, read “Key facts about Asian Americans living in poverty.”

Videos throughout this data essay illustrate what focus group participants discussed. Individuals recorded in these video clips did not participate in the focus groups but were selected based on similar demographic characteristics and thematically relevant stories.

Watch the short film related to the themes in the data essay.

Methodological note

This multi-method research project examines the many facets of living with economic hardship among Asian Americans today.

The qualitative analysis is based on 18 focus groups conducted in February 2023 in 12 languages with 144 participants across four locations. Recruited participants had an approximate family income that is at or below 140%-250% of the federal poverty line, depending on the location. More information about the focus group methodology and analysis can be found in the focus group methodology .

The survey analysis included in this data essay is based on 561 Asian adults living near or below the poverty line from Pew Research Center’s 2022-23 survey of Asian Americans, the largest nationally representative survey of Asian American adults of its kind to date, conducted in six languages. For more details, refer to the survey methodology . For questions used in this analysis, refer to the topline questionnaire .

Acknowledgments

Pew Research Center is a subsidiary of The Pew Charitable Trusts, its primary funder. The Center’s Asian American portfolio was funded by The Pew Charitable Trusts, with generous support from The Asian American Foundation; Chan Zuckerberg Initiative DAF, an advised fund of the Silicon Valley Community Foundation; the Robert Wood Johnson Foundation; the Henry Luce Foundation; the Doris Duke Foundation; The Wallace H. Coulter Foundation; The Dirk and Charlene Kabcenell Foundation; The Long Family Foundation; Lu-Hebert Fund; Gee Family Foundation; Joseph Cotchett; the Julian Abdey and Sabrina Moyle Charitable Fund; and Nanci Nishimura.

We would also like to thank the Leaders Forum for its thought leadership and valuable assistance in helping make this survey possible.

The strategic communications campaign used to promote the research was made possible with generous support from the Doris Duke Foundation.

This is a collaborative effort based on the input and analysis of a number of individuals and experts at Pew Research Center and outside experts.

  • In this data essay, definitions of “living near or below the poverty line” and related terms differ between survey respondents and focus group participants. Refer to the terminology box for details. ↩

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About Pew Research Center Pew Research Center is a nonpartisan fact tank that informs the public about the issues, attitudes and trends shaping the world. It conducts public opinion polling, demographic research, media content analysis and other empirical social science research. Pew Research Center does not take policy positions. It is a subsidiary of The Pew Charitable Trusts .

In striking reversal, low-paid workers saw biggest wage growth during pandemic years

poverty and income inequality argumentative essay

Wages rose much faster for America’s lowest-paid workers than for their better-paid colleagues between 2019 and 2023, a new report says, a striking reversal after four decades of widening wage inequality.

Hourly pay rose by 12.1% in those years for low-wage Americans, from $12.06 to $13.52, boosted by policy decisions that aided those workers during the pandemic, according to a report from the left-leaning Economic Policy Institute.

In the same span, hourly wages grew by 0.9% for the highest earners, from $57.30 to $57.84.

The study compared wages across incomes, adjusting for inflation. It found the highest growth among workers in the 10th percentile for income, meaning that nine-tenths of workers earned more. The slowest wage growth came at the high end of the pay scale, represented by workers in the 90th percentile for earnings.

The trend is significant, the report says, because the wage gap between low- and high-income Americans had been growing for the previous 40 years.

“The current business cycle is a notable reversal of fortune for lower-wage workers in the U.S. labor market,” the report states.

Will the trend continue? That depends on several variables, the report says, including the federal government's willingness to cut interest rates and to raise the national minimum wage.

Did the pandemic bailout help low-wage workers, or hurt them?

According to the institute’s analysis, the data illustrate that Congress and the Trump and Biden administrations responded to the pandemic with policy moves “that made a real difference in people’s lives: Wages grew for those who needed it most.”

Other economists disagree: The pandemic-era economic bailout sparked the worst inflation in four decades, they contend. Despite the wage growth, low-income workers now face rising debt and dwindling savings.

Congress approved trillions of dollars in pandemic relief at the pandemic’s height, dispatching stimulus checks, enhanced jobless benefits and other aid.

By one argument, those funds saved low-wage workers from poverty and delivered them into a more favorable labor market.

“The government set up a bunch of different relief funds essentially for those workers and those businesses to survive during that time when they were shuttered,” said Elise Gould , a senior economist at the Economic Policy Institute. “When those jobs came back, (workers) weren’t as desperate to take the first job that came along. They were allowed to be a little bit pickier.”

By another argument, the federal government effectively shut down its own economy, and then set up relief programs that discouraged idle workers from returning.

“We had the government lock down the economy and sort of force millions of people out of work,” said Jai Kedia , a research fellow at Cato Institute, the libertarian think tank. “The government was actually paying people to stay home.”

Once businesses reopened, Kedia said, “you had this sudden, huge demand for workers, but no one was willing to work.”

To Kedia, the Covid-19 bailout represents a failure of policy, rather than a triumph. The inflation crisis of the past two years “tells me that the policy failed,” he said. “I don’t know why we’re even debating this.”

Wage inequality is on the rise

The Economic Policy Institute analysis, published March 21, serves a larger theme of wage inequality. The think tank releases periodic reports on the growing gap between the earnings of the highest- and lowest-paid Americans.

Between 1979 and 2021, the wages of Americans in the top 1% of earners grew by 206% , after adjusting for inflation, according to an earlier analysis by the nonprofit. In the same years, wages for the bottom 90% grew by only 29%.

Policymakers allowed the wage gap to widen, the analysis says, by failing to raise the federal minimum wage, tolerating excessive unemployment and allowing corporate globalization, among other factors.

In the new report, the think tank argues that policymakers should sustain the wage gains for lower-paid workers by raising the federal minimum wage, which has stood at $7.25 since 2009.

Twenty-five states are raising their own minimum wage in 2024. California made headlines this month by bumping its minimum wage to $20 for some workers.

Opponents warn that employers will respond by cutting workers and raising prices. Advocates say higher wages can help lift low-paid workers out of poverty.

“You’re still talking about $40,000 a year,” Gould said, alluding to the approximate annual earnings of someone paid the highest minimum wages available today. “And if you’re trying to raise a family on that, it can be very difficult.”

The report also recommends long-term investments in unemployment insurance, stronger labor standards and, most urgently, federal action to cut interest rates.

More: Powell hints Fed still on course to cut rates three times in 2024 despite inflation uptick

“Even a mild recession” triggered by high interest rates “will do significant harm to low-wage workers and their families,” the report says.

The Federal Reserve had forecast three interest-rate cuts this year, contingent on easing inflation. Last week, Federal Reserve Chair Jerome Powell suggested that plan is still on track .

Mapping America’s access to nature, neighborhood by neighborhood

poverty and income inequality argumentative essay

A city is a science experiment. What happens when we separate human beings from the environment in which they evolved? Can people be healthy without nature? The results have been bleak. Countless studies have shown that people who spend less time in nature die younger and suffer higher rates of mental and physical ailments.

“There’s a really, really strong case for proximity to nature influencing health in a really big way,” said Jared Hanley, the co-founder and CEO of NatureQuant, an Oregon start-up whose mission is to discover what kind of nature best supports human health, map where it is and persuade people to spend more time in it.

Using satellite imagery and data on dozens of factors — including air and noise pollution, park space, open water and tree canopy — NatureQuant has distilled the elements of health-supporting nature into a single variable called NatureScore. Aggregated to the level of Census tracts — roughly the size of a neighborhood — the data provide a high-resolution image of where nature is abundant and where it is lacking across the United States.

poverty and income inequality argumentative essay

Quantifying nature reveals unsettling truths — about how the densest neighborhoods are often bereft of nature, and about how the poorest city dwellers have the least access to the nature’s health benefits. But it could also help pinpoint which parts of our urban landscapes would benefit most from an infusion of nature.

What’s at stake

The scientific basis for nature’s health benefits is now overwhelming. Study after peer-reviewed study has shown that nature exposure is linked to living longer , sleeping better , displaying improved cognitive function , and enjoying lower rates of heart disease , obesity , depression and stress .

In rural areas, both rich and poor can easily spend time in nature. But in cities, NatureScores are higher where people have more education, are more likely to be White and earn more money.

Why does nature make us healthy? One answer is the “old friends hypothesis” that our immune systems grow stronger when regularly exposed to the natural pathogens with which we evolved. Or maybe it’s that being in nature nudges us to exercise and socialize. A third theory is that cities are just unhealthy, exposing us to lead, asbestos and vehicle exhaust, not to mention the stress of traffic and noisy construction.

Yet like space dust accreting to form planets, humans seem compelled to gather in cities. Two hundred years ago, just 7 percent of people in the United States lived in an urbanized area. By 1970, when Joni Mitchell was lamenting that we’d “paved paradise,” that figure was up to 75 percent. Today, 86 percent of us live in cities, and the share continues to rise.

The denser the city, the less health-supporting nature you are likely to find. Among the 500 most populous cities in the United States, Suffolk, Va., with just 147 people per square mile, has the highest NatureScore. Union City, N.J., is by far the densest — almost 30,000 people per square mile — and has one of the lowest NatureScores.

But density is not destiny. New York, for instance, has a better NatureScore than Los Angeles and Chicago, even though its population density is higher. And the best way to boost a city’s NatureScore is to plant trees.

The Arbor Day Foundation, which directs millions of dollars to tree planting projects around the world, started using NatureQuant’s data in 2021. If a donor comes to the Arbor Day Foundation with a plan to plant trees in a posh part of town, the data can help make the argument that the trees would do more good elsewhere.

“Everybody wants to plant in their neighborhood,” said Jeff Salem, director of communications for the Arbor Day Foundation. “But this helps that conversation of, ‘Hey, you might live in North Chicago in a really great neighborhood, but really, as you can see here, there’s some neighborhoods on the South Side that really could use your support with trees.’”

In rural America, it doesn’t matter if you are rich or poor, Black or White, dropped out of high school or have a PhD: you are still likely to have access to health-supporting nature. But in cities, differences in access to nature are as stark as other forms of inequality.

For example, among the fifth of Census tracts with the lowest levels of education, the average NatureScore is just 37, compared with an average score of 68 in the most educated Census tracts. The Census tracts with the lowest share of White people have an average NatureScore of 45, compared with 73 in the tracts with highest share of Whites.

NatureScores can identify neighborhoods that need trees. Planting them is another matter. “We use [the data] as a starting point. But, you know, the devil is in the details,” said Christina Smith, the executive director of Groundwork Bridgeport, an environmental nonprofit in Bridgeport, Conn., where she grew up.

Suppose you want to boost a neighborhood’s NatureScore by lining the sidewalk with trees. Before you buy the first sapling, you need to make sure the sidewalk is wide enough to fit a tree and still comply with the Americans With Disabilities Act. And you’ll need money to hire workers or face the dangerous prospect of twenty high school volunteers packed into a narrow sidewalk with cars whizzing by.

What about just giving free trees to neighborhood residents? If most people rent, they won’t have the authority to plant on their property. If you manage to track down property owners, they might not want the burden of planting and caring for trees.

Yet Groundwork Bridgeport has figured out how to host successful tree giveaways (door knocking works better than direct mail, and it helps to have friends at community gardens). Last year, they distributed 100 trees to residents on the east side of the city. If all those trees are still around in 30 years, it will boost the area’s NatureScore by 15 points, amounting to an increase of a year of life expectancy for people in the neighborhood, NatureQuant told me.

Thirty years is a long time to wait, which is one of the reasons cash-strapped city governments often view tree planting as a frivolous expense compared to more pressing matters like crime and homelessness. “Trees are not a silver bullet. Trees are not going to solve poverty,” said Dan Lambe, the Arbor Day Foundation’s CEO.

But quantifying nature can make sure trees are going where they’re needed most, Lambe said: “We know we can make a difference in people’s lives by emphasizing neighborhoods that have been disadvantaged, who have been ignored, that just simply don’t have the tree benefits.”

Check my work

The NatureScores by Census tract were provided by NatureQuant, Inc., which described its methodology in this paper . Those data are as of July 31, 2023. You can find my analysis of those data along with 2020 socioeconomic data from the U.S. Census Bureau in this computational notebook . The top 500 U.S. cities were also provided by NatureQuant and are based on 2020 NatureScore data. You can find my analysis of the city data in this notebook .

You can use the code and data to produce your own analyses and charts — and to make sure mine are accurate. If you do, email me at [email protected] .

COMMENTS

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