Poverty is typically seen by the general population of people in America as either the fault of the individual – due to either individual failings or a difference in individual values – or they have fallen to an unfortunate circumstance. The book references an individual by the name of Oscar Lewis who was an American anthropologist. He is known for his view points on individuals who have fallen to the effects of living in thickly settled and impoverished cities such as areas of New York. He believes the culture of poverty is the coupling of reconstruction and reaction of the poor and their place in a “class-stratified, highly individualistic, capitalistic society.” He stated that “by the time slum children are age six or seven, they have usually
…show more content…
The growth of the economy has an effect on the rise and fall in the average standards of living. Having hierarchies and social stratification also affects allocation of income to the people. Iceland explains some of the causes of poverty through two occurrences: Economic growth and Economic inequality. Economic growth is explained through three processes: the expansion in population from 1790 (4 million) to 2010 (309 million), the increase in human capital – which correlates with an increase in productivity - thus growth, and also the rapid technological advancements in recent years, which also contributes itself to productivity and growth. Gross domestic product (“the output of goods and services produced by labor and property located in the United States…”) and the absolute poverty rates display a negative correlation with one another between 1947 and 2010. This brings light to a convincing connection between the two. The relationship between the two really begins to seem prominent during the Great Recession in the beginning of the twenty-first century. However, other systems of analyzing poverty in America seem to not have a trend as the absolute poverty rate does. There is secondly, Economic Inequality, which discusses the imbalance between individuals in cohesion with their wealth, income, and consumption. Iceland paraphrases Marx stating that “business owners favor having inexpensive labor to maximize their profits (to reap the surplus value).” Having worked in the fields of painting and landscaping, I understand how employees can be taken advantage of and capitalized on for being for example: immigrants. There is also the economic distribution within market systems which contributes to inequality. Joseph Schumpeter made known the idea of ‘creative destruction’: “the notion that capitalism prizes innovation that often disrupts the traditional order.” Essentially it is the movement into a new era of development
The growth of the economy has an effect on the rise and fall in the average standards of living. Having hierarchies and social stratification also affects allocation of income to the people. Iceland explains some of the causes of poverty through two occurrences: Economic growth and Economic inequality. Economic growth is explained through three processes: the expansion in population from 1790 (4 million) to 2010 (309 million), the increase in human capital – which correlates with an increase in productivity - thus growth, and also the rapid technological advancements in recent years, which also contributes itself to productivity and growth. Gross domestic product (“the output of goods and services produced by labor and property located in the United States…”) and the absolute poverty rates display a negative correlation with one another between 1947 and 2010. This brings light to a convincing connection between the two. The relationship between the two really begins to seem prominent during the Great Recession in the beginning of the twenty-first century. However, other systems of analyzing poverty in America seem to not have a trend as the absolute poverty rate does. There is secondly, Economic Inequality, which discusses the imbalance between individuals in cohesion with their wealth, income, and consumption. Iceland paraphrases Marx stating that “business owners favor having inexpensive labor to maximize their profits (to reap the surplus value).” Having worked in the fields of painting and landscaping, I understand how employees can be taken advantage of and capitalized on for being for example: immigrants. There is also the economic distribution within market systems which contributes to inequality. Joseph Schumpeter made known the idea of ‘creative destruction’: “the notion that capitalism prizes innovation that often disrupts the traditional order.” Essentially it is the movement into a new era of development