Poverty Cycle

Question 1

Describe the Poverty Cycle

Answer 1

arises when low income results in low savings, permitting only low investment in physical, human and natural capital and therefore, low productivity of labour and land. This give rise to low if any growth of income and hence low income once again. A poverty cycle may occur in a family, a community a part of an economy or in an economy as a whole. An important feature of the poverty cycle is that poverty is transmitted from generation to generation.

Question 2

Describe two ways poverty is transmitted from generation to generation

Answer 2

1) People cannot afford to send their children to school, either because the children work to supplement the family income or because the parents cannot afford transport costs to school or school fees.
2) The cannot afford the necessary care for themselves or for their children and sometimes cannot provide enough food for the family, leading to malnourished and physically disadvantaged children