The Economic Factors Of Poverty And Crime In Pakistan

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Register to read the introduction… Increased cost of production has to be paid by the consumers in form of high prices; once again more demand falls. At the end of the day, firms have to quit from the industry. This results in increase in unemployment as shut down of a firm makes many people jobless. Poverty kicks in when the people are deprived of basic necessities like food, clothing and shelter; this majorly happens in result of inflation and unemployment. To facilitate the people with essentials of life, the resources in an economy have to be efficiently used and equal distribution of income should take place so that suppressed classes of the society can better off. The role of government of Pakistan is very important in equal distribution of income as it’s a responsibility of a government to ensure transparency in tax collection and use the tax revenue for the well being of suppressed …show more content…
The outcomes of the study show that the above mentioned economic factors have relationship with crimes. The following conclusions have been drawn from this study:
The results of the data analysis reveal that unemployment in Pakistan Granger causes crime. The reason is that unemployment rate in the legal labor market of a country is a complementary indicator of income opportunities. Hence, when unemployment rate increases, the opportunities for earning income decreases which bring about the individuals to commit crime. The costs of committing crime drop for unemployed workers. The proposition that unemployment causes crime is supported by the results of casualties.
The results show that poverty also Granger causes crime. To satisfy desires and wants the poor have limited income and resources. In Pakistan the poverty statistics show miserable picture besides increasing income inequality. Low standard of living is the result of low income which means low saving potential. The low income in relation to increase prices (inflation) reduces an individual’s moral threshold which causes crime instigating effect. As a result, it can be concluded that people in poverty are persuaded to commit crime. The results of Granger causality through Toda-Yamamoto procedure affirm that poverty causes
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The economic condition of any country reflects the future of its people; whether they are going to better off or worse off. Unfortunately, Pakistan is economically instable which further leads to moral and ethical turn down. In such terrible economic and social situation of Pakistan, talented youth do not find enough opportunities to grow and polish themselves for their bright future. They are tending to settle abroad where they are paid well and can enjoy the better standard of living. In this way the real investment goes out and Pakistan is left with less hope for

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