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Buildings in Rio de Janeiro, demonstrating economic inequality. Effects of income inequality, researchers have found, include higher rates of health and social problems, and lower rates of social goods, [1] a lower population-wide satisfaction and happiness [2] [3] and even a lower level of economic growth when human capital is neglected for high-end consumption. [4]
The United States has the highest level of income inequality in the Western world, according to a 2018 study by the United Nations Special Rapporteur on extreme poverty and human rights. The United States has forty million people living in poverty, and more than half of these people live in "extreme" or "absolute" poverty.
A data based scientific empirical research, which studied the impact of dynastic politics on the level of poverty of the provinces, found a positive correlation between dynastic politics and poverty; i.e. the higher proportion of dynastic politicians in power in a province leads to higher poverty rate. [334]
The relationship between poverty reduction and differing levels of welfare expense as a percentage of GDP [1] The effects of social welfare on poverty have been the subject of various studies. [1] Studies have shown that in welfare states, poverty decreases after countries adopt welfare programs. [2]
Economic inequality is an umbrella term for a) income inequality or distribution of income (how the total sum of money paid to people is distributed among them), b) wealth inequality or distribution of wealth (how the total sum of wealth owned by people is distributed among the owners), and c) consumption inequality (how the total sum of money spent by people is distributed among the spenders).
The social determinants of health in poverty describe the factors that affect impoverished populations' health and health inequality. Inequalities in health stem from the conditions of people's lives, including living conditions , work environment, age , and other social factors, and how these affect people's ability to respond to illness . [ 1 ]
Pennsylvania State University political science professor Pamela Blackmon attributes the trends of growing poverty and income inequality to the convergence of several neoliberal policies during Ronald Reagan's presidency, including the decreased funding of education, decreases in the top marginal tax rates, and shifts in transfer programs for ...
In the age of inequality, such anti-poverty policies are more important than ever, as higher inequality creates both more poverty along with steeper barriers to getting ahead, whether through the lack of early education, nutrition, adequate housing, and a host of other poverty-related conditions that dampen one's chances in life.