1. Poverty

2. Copyright (c) Allyn & Bacon 2010 Definitions Poverty—deprivation Absolute poverty—falling below a base standard of what is necessary for survival Relative poverty—deprivation that is relative to the standard of living enjoyed by other members of society

3. Types of Poverty Cyclical Poverty Collective Poverty Concentrated Poverty Case Poverty

4. Cyclical Poverty Cyclical Poverty refers to poverty that can affect a population population, but the occurrence itself is of limited duration. In non-industrial societies (past or present), this sort of inability to provide for one’s basic needs rest mainly upon problems with the economic cycle of the country. Ex: Great Depression 2008 Credit crisis

5. Collective Poverty Collective Poverty: In contrast of the cyclical poverty which is temporary, widespread or “collective” poverty involves a relatively permanent insufficiency of means to secure basic needs. Low life expectancy, high levels of infant mortality and poor health characterize life in this societies. It is usually related to economic underdevelopment. Examples: Africa, Asia, South and Central America Proposed remedy: Expansion of the GNP through improved agriculture and industrialization or both Population limitation. Improve population control programs

6. Concentrated Poverty Concentrated Collective Poverty: Parts of an industrialized country suffer from poverty because most of the developments took place in selected area particularly in urban places. Their chief economic traits are unemployment and underemployment, unskilled occupations and job instability. The government must have programs that will develop regions or rural areas in terms of agriculture and raising the level of skills of employable members of these areas Example: Rural US, Detroit

7. Case Poverty Case Poverty refers to the inability of an individual or family to secure basic needs even social surroundings of general prosperity. This inability is generally related to the lack of some basic attributes that would permit the individual to maintain himself. The helpless aged, the blind, the physically handicapped, the chronically ill, etc. Solution: education, sheltered employment and economic maintenance Example: Disabled and undereducated

8. What Causes Poverty? Overpopulation Global Distribution of Resources High Standard of Living and Cost of Living Inadequate Education/Employment Environmental Degradation Mental Illness /substance abuse

9. Effects of Poverty Malnutrition and Starvation Infectious Diseases Crime and Violence Long-Term Effects

10. Poverty In the U.S.

11. would you do? the homeless

12. Who Makes Up the Poor The U.S. poverty rate in 2006 was 36.4 million people (12.3% of population) Beginning in 2001, poverty rates grew for every racial and ethnic group See Table 5.1 Blacks (24.3%, ‘06) Hispanics (20.6%, ‘06)

13. Copyright (c) Allyn & Bacon 2010

14. Measuring Poverty Poverty threshold/line – the official measure to determine those living in poverty in the U.S.

15. Measuring Poverty Social Security Administration (SSA) sets absolute poverty as defined by a poverty line drawn at a given income Threshold was developed by taking the cost of the least expensive food plan and multiplying that number by 3

16. The Poverty Threshold http://www.usccb.org/about/catholic- campaign-for-human- development/povertyusa/

18. Copyright (c) Allyn & Bacon 2010 Working & Poverty 35 million Americans work full time but fail to make an adequate living (almost 1 of 4 live in or around the edges of poverty) These are generally nursing home aides, poultry processors, pharmacy assistants, child care workers, data entry clerks, janitors, and other in the secondary and tertiary labor markets

19. “The Working Poor” The working poor represent a growing sector of the poverty population They are defined as individuals who spend at least 27 weeks in the labor force (working or looking for work), but whose family incomes fall below the poverty line 7.7 million in 2005 classified as working poor

20. Work & Poverty Unemployment – the condition of individuals over 16 years of age who are looking for work Underemployed – includes workers holding jobs below their skill levels; and part-time workers who wish to work full time

21. Work & Poverty Outsourcing of jobs & ramifications Minimum wage issues 1997 federal minimum wage raised to $5.15 an hour Minimum wage frozen from 1997 to 2007 where the min. wage increased to $7.40 an hour Increasing min. wage hopes to increase family income over poverty line

22. Three Approaches to Combat Poverty Curative Approach – help the poor to become self-supporting through changes in their personal lives & in the environment Alleviative approach – exemplified by public assistance programs Preventive approach – exemplified by social insurance programs (Social Security)

23. World Poverty Copyright (c) Allyn & Bacon 2010

25. Rank Country GDP - per capita 1 East Timor $ 500 2 Somalia $ 500 3 Sierra Leone $ 500 4 Malawi $ 600 5 Tanzania $ 600 6 Burundi $ 600 7 Congo, Republic of the $ 700 8 Congo, Democratic Republic of the $ 700 9 Comoros $ 700 10 Eritrea $ 700 11 Ethiopia $ 700 12 Afghanistan $ 700 13 Niger $ 800 14 Yemen $ 800 15 Madagascar $ 800 16 Guinea-Bissau $ 800 17 Zambia $ 800 18 Kiribati $ 800 19 Nigeria $ 900 20 Mali $ 900 Poorest Countries in the World

26. Rank Country GDP - per capita 1 Luxembourg $ 55,100 2 Norway $ 37,800 3 United States $ 37,800 4 San Marino $ 34,600 5 Switzerland $ 32,700 6 Denmark $ 31,100 7 Iceland $ 30,900 8 Austria $ 30,000 9 Canada $ 29,800 10 Ireland $ 29,600 11 Belgium $ 29,100 12 Australia $ 29,000 13 Netherlands $ 28,600 14 Japan $ 28,200 15 United Kingdom $ 27,700 16 France $ 27,600 17 Germany $ 27,600 18 Finland $ 27,400 19 Monaco $ 27,000 20 Sweden $ 26,800 Richest Countries in the World

27. According to UNICEF, 30,000 children die each day due to poverty. And they “die quietly in some of the poorest villages on earth, far removed from the scrutiny and the conscience of the world. That is about 210,000 children each week, or just under 11 million children under five years of age, each year. Copyright (c) Allyn & Bacon 2010

28. Today, across the world 1.3 billion people live on less than $1 a day 3 billion live on under $2 a day 1.3 billion have no access to clean water 3 billion have no access to sanitation 2 billion have no access to electricity

29. William H. Gates Today he is worth a staggering $52.8 billion. He could pay the salary of President Obama (US$400,000) for 132,000 years You could win Survivor 52,000 times and still not match up to his fortune.

30. The GDP (Gross Domestic Product) of the poorest 48 nations (i.e. a quarter of the world’s countries) is less than the wealth of the world’s three richest people combined. Richest People in the World Rank Country Individual 1 United States Gates, William H III 2 United States Buffett, Warren E 3 India Lakshmi Mittal 4 Mexico Carlos Slim Helu 5 Saudi Arabia Prince Alwaleed Bin Talal Alsaud 6 Sweden Ingvar Kamprad 7 United States Paul Allen 8 Germany Karl Albrecht 9 United States Lawrence Ellison 10 United States S Robson Walton 1 United States, William Gates III 2 United States Warren Buffett 3 India Mittal Lakshmi

31. What we spent in Billions of Dollars on: Cosmetics in the United States $8b Ice cream in Europe $11b Perfumes in Europe and the United States $12 b Pet foods in Europe and the United States $17 b Business entertainment in Japan $35 b Cigarettes in Europe $50 b Alcoholic drinks in Europe $105 b Narcotics drugs in the world $400 b Military spending in the world $780 b What is needed in Billions of dollars: Basic education for all $6 b Water and sanitation for all $9 b Reproductive health for all women $12 b Basic health and nutrition $13 b