ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Poor people are more likely to have several kinds of family problems, including divorce and family conflict. Poor people are more likely to have several kinds of health problems. Children growing up in poverty are less likely to graduate high school or go to college, and they are more likely to commit street crime.

Detailed explanation-2: -First, a high rate of poverty impairs our nation’s economic progress: When a large number of people cannot afford to purchase goods and services, economic growth is more difficult to achieve. Second, poverty produces crime and other social problems that affect people across the socioeconomic ladder.

Detailed explanation-3: -Differences in the economic growth rate of nations often come down to differences in inputs (factors of production) and differences in TFP-the productivity of labor and capital resources. Higher productivity promotes faster economic growth, and faster growth allows a nation to escape poverty.

Detailed explanation-4: -Economic policies such as low interest rates, used to stimulate the economy through hard times, have led to asset inflation and intergenerational inequality with younger people now making up one of the largest groups of people living in poverty.