The Vicious Cycle of Poverty

[Bitco55]

Poverty- the quality/ state of being poor, the lack of money, a deficiency of something needed or desired, etc, isn't just about not having money/ what you need and want. It is about being trapped in a cycle, a loop that is almost difficult to break from. In economics, this phenomenon is referred to as the Vicious Cycle of Poverty. It is a situation where being poor now makes it painfully hard to escape poverty later on.

It is a macro economic phenomenon, but on individual basis, it could be seen in education, health, employment, and other aspect of a person's life. The vicious cycle of poverty simply says that, because a nation ( or person) is poor, it can't save. Because it can't save, it can't invest. Because it can't invest, it can't develop. Therefore, it remains poor and the cycle goes on and on until a change is made.

In education, a child from a low income family may have to drop out of school to support the family through farming and other menial jobs. He'll grow up, become poor, and increase the likelihood of his children struggling to go to school too.

In health; poor nutrition is a manifestation of poverty. A bread winner who has been neglecting his/her health due to low income may spend money that could have been invested in small businesses/ other important things, on treatment when he/she gets seriously ill, therefore going back to poverty and lack. Another example is when the household spends all their money on basic food, and never invest in anything that would bring more income to the family later on. Because they don't have the money to buy food stuffs in bulk, they spend and buy in small quantities over an over again. Buying in small quantities is inarguably more expensive than buying in bulk, and it discourages saving.

In employent; low income means no capital to start up any business venture. No investment in education and skills reduces the chances of being hired in any company. The Vicious Cycle of Poverty is like running on a treadmill, never actually moving anywhere. It can be broken though. Experts say, the only way to break the cycle is through investments. This just shows how important is in our lives. A person can never escape this cycle unless he/ she invests. Remember, you can't invest what you don't have or what you haven't saved. Saving is just as important too. Investments in one's education, health, finances, and so on, is what takes a person out of this cycle of poverty.

[WillyAp]

In education, a child from a low income family may have to drop out of school to support the family through farming and other menial jobs.

In health; poor nutrition is a manifestation of poverty.

The 21 century shows clearly that even high rollers suffer from bad food, it affects the health of the poor and rich. Which are only 2 of the thousand different classes there are.

Ignorance is the underlying factor.

Richer people do not eat automatically better.  Poor people can rip themselves out of poverty by recognizing the importance of education.
The way you speak, the modulation of your wording makes a difference. It pays to make an extra effort and check spelling.
 
No rich person refuses to talk to you if you are able to speak properly and emit honesty, although also here there are exceptions. The poor refuse to talk to you if you speak better than them.
 
Ignorance being the underlying factor. 

[bangjoe]

The key link is mindset and ego. Many people who lack a good education achieve success, some even dropping out of college to start their own businesses. We often see this in those who achieve financial freedom.

When discussing poverty, we also need to consider the area of ​​measurement. For example, you can't call me poor if you compare me to someone in a different location. Similarly, I can't call you rich; the comparison tool is your neighborhood or the area you live in.

When discussing poverty, the reason it's so difficult for people to escape is because there are different mindsets. Imagine living in a rural community and having plenty of meat and food preparation means you're considered rich in that environment.

[AVE5]

In education, a child from a low income family may have to drop out of school to support the family through farming and other menial jobs. He'll grow up, become poor, and increase the likelihood of his children struggling to go to school too.

This has come to remind me an occasion where I met a teenager around 15 to 17 year old who was engaged in acquiring skill (handiwork) last two years ago.
The scenario was that I met the young boy by the corner of the Street looking worn-out and depressed. To exercise my humidity was to approach him as I was concerned. He said his parents are on his neck to financially support the family because they struggles to afford essential needs such as foods and medication.
Education has become something not in the diary after his parents stopped him from going to school and turned him over to learning skills and while on the learning process, the parent couldn't be patient enough for him to round up and begin make money to support the family. So he was pressured to quit in the halfway and find something that can fetch quick money because they're indeed in need.
The story is touching because nothing has changed for good in the family yet since then I sees the boy and his younger rooming in the streets and looking unhealthy and unkept.
I think it's high time such related families realizes that if you encourages your kids to settle for the less. They'd grow with it and feel comfortable with it While others are exploring. Parents that persists to this will only end up sponsoring poverty heredity.

[Zlantann]

The Vicious Cycle of Poverty could also be called the rat race. It keeps people with only money to satisfy their basic needs, no matter how hard they work. Some people end up paying debts throughout their lives because they had to borrow to survive.

The only way to get out of this circle is to save and invest. It might be difficult to save, considering how bad some economies have become, but we just need to put more effort. Learning a new skill, starting a business, or getting a side job might be helpful. I have a dream to retire early and this would be possible if I leave the rat race.

[Z-tight]

I believe that nobody is truly poor, until they accept that they are. They obviously wouldn't do that consciously, but once you stop improving or developing yourself, you are on a wide path to bankruptcy, of mind, finances, health, etc. And that is what poverty is.

There is one important thing people miss, and it is how our environment shapes us and if it was one of poverty and negativity, you would have to put work in to break that pattern, if not you would subconsciously grow to reflect the reality you were exposed to. The thing with poverty or any situation at all is that there is always a possibility of change and if you believe in ourselves and stop hating on the rich, then you can make some money for yourself down the line.

[Joy_learns_crypto]

I concur with that and not only materially, being from a poor home that not only pass done poverty for generation to generational but also pass down the poverty contentment is is very hard for a kid from such home to free themselves from poverty.
It is hard but it is not impossible that the poor kid becomes rich.

Being poor with poor mentality and from a poor nation makes it even very hard if kids can get cheaper quality education even if they are poor they can have the foundation to turn poverty into wealth.

[Cheema02]

The key link is mindset and ego. Many people who lack a good education achieve success, some even dropping out of college to start their own businesses. We often see this in those who achieve financial freedom.

When discussing poverty, we also need to consider the area of ​​measurement. For example, you can't call me poor if you compare me to someone in a different location. Similarly, I can't call you rich; the comparison tool is your neighborhood or the area you live in.

When discussing poverty, the reason it's so difficult for people to escape is because there are different mindsets. Imagine living in a rural community and having plenty of meat and food preparation means you're considered rich in that environment.

You have mentioned some important points about mindset, ego and a small context about success and poverty. It's a right statement that a formal education isn't enough to make a man financially freedom many entrepreneurs and successful businessman have succeeded with their mindset and goals. Mindset plays a crucial role in how a person can break his limits and get successful with his struggle. Some people focus on education and they don't even think out of the box. These people are always left behind from a creative and successful mind. They just focus on theory without keeping in mind how much a practical experience is necessary. Creativity teaches our children to make progress by critical thinking and applying their ideas in practical field to get progress. When a person faces difficulties he learn from his surroundings which greatly influence him to escape from poverty.

[Yaunfitda]

Yes, I do agree with the mindset. As I believed that everything starts in our minds. Our thoughts are the key, if we keep on thinking that we will be poor for the rest of our natural lives then that's what we are going to get. But if we believed that we can change everything, despite what is in our surrounding, then it might happened. As the saying goes "thoughts become things, if you see it in your mind, you will hold in it your hand". With that, then you might flip everything around. You might think that you will be the first millionaire in your family, then that could happen and break the vicious cycle of poverty not just you but for the next generation. Maybe your son and his son and daughter will enjoy the fruit that you have seed in today's generation by shifting your mindset to more positive energy.

[Stepstowealth]

It is a macro economic phenomenon, but on individual basis, it could be seen in education, health, employment, and other aspect of a person's life. The vicious cycle of poverty simply says that, because a nation ( or person) is poor, it can't save. Because it can't save, it can't invest. Because it can't invest, it can't develop. Therefore, it remains poor and the cycle goes on and on until a change is made.

The deadliest form of poverty is to be mentally poor. If you are mentally poor, you have already accepted your situation and making any effort to change your situation will be almost impossible. Even in situations where an opportunity to break free from the cycle of poverty has been handed to you, you will not take the opportunity or even make good use of it because you do not on your own see any way out of your situation.

Mentally poor people do not take opportunities that come their way, they are stuck in their situation refusing to recognize that they are actually the cause of their own problems. Mental poverty is the worse form of poverty.

[Davidvictorson]

A person can never escape this cycle unless he/ she invests. Remember, you can't invest what you don't have or what you haven't saved. Saving is just as important too. Investments in one's education, health, finances, and so on, is what takes a person out of this cycle of poverty.

Really? A person can never escape unless they invest? I do not agree completely with you on this. Investment is only one of the means of getting out of it. And not just any investment but the right investment. A bad investment can lead you into penury which is the worse form of poverty. However, not investing at all is better than a bad investment. That being said, there are other means of getting out of poverty, you need to have a skill that is sellable, scalable, needed, that adds value. It could be a skill to develop a product or to offer a service once it fulfills a need, that will be one of your passports out of poverty.

[coupable]

In education, a child from a low income family may have to drop out of school to support the family through farming and other menial jobs. He'll grow up, become poor, and increase the likelihood of his children struggling to go to school too.

I almost lived in a similar situation that i had to leave study in the college because of my family condition. The difference is that i leave college to work to stay alive far away from my family but i never thought to help my family while my condition is getting worse.
I support the call to blame parents for hiving birth to children they can't support them in good health care and education. I think i can find poorness a reason for someone not being able to achieve all his goals, but poorness can't be a reason on why you can't support your kids because you are the one as a parent who took the decision to norn them.

[rat03gopoh]

The only way to get out of this circle is to save and invest.

That's not true; there's actually a lot to it. Especially how you build a foundation for major change, starting with improving your mindset, habits, social circle, and so on; all of this will offer more opportunities to change one's financial status. Next move, you can start something new with a stronger foundation, such as a business.
Some investment instruments today are still heavily tied to uncertainty. Strict selectivity is essential, or you'll simply be feeding the rich to reach the next level of wealth.

[Darker45]

Fortunately, there are proofs that people can actually break free from the cycle. There are many success stories of individuals who are able to beat the odds. So, it's possible. There may be luck involved, but I believe it's more of determination, perseverance, dedication, hard work, and so on.

It would be great if the government itself is moving heaven and earth to make sure anybody caught in the cycle is freed, or at least given the opportunity to break free. But if you're coming from a country like mine, it'll have to be mainly a solo battle. But, again, it can be done. It's just that many give up before they're even halfway through the battle.

[pooya87]

Let me strongly disagree with this notion. Poverty is not always a cycle that you get stuck in without an exit or escape. Poverty is a mindset in most cases where people get stuck in it because they don't want to change and they don't want to use their heads.

I come from a poor background and a poor childhood and I have pulled myself out of it simply by using my head. I'm not saying I am this wise guy with high IQ, just that I thought ahead and planned for my life. Now I live comfortably.

Let me give you a very recent example of how not using your head looks like. Just a couple of days ago I was talking to someone who was complaining about the economic situation and how they are working their asses off (he and his wife both) and at the end of the month they are left with no money. As we talked I learned that they are giving literally half their income (which is a high income to be clear) for rent!!! And I know for a fact that in the neighborhood they live in, they can get a much cheaper deal which would leave them with a lot more money at the end of the month instead of running out.
This is not a vicious poverty cycle that they are in, this is (and I don't like using this term) their own stupidity. Because with that income and with roughly 2 years of saving and investing they could actually begin working on purchasing their own apartment. But 2 years from now they will be poorer and having to pay more rent due to inflation!

That's the key. You have to work hard and wise, then you have to learn money management and save your money to make wise investments to further increase your wealth to continue improving your financial situation.
But instead what happens for most people is that they work hard but dumb. Then they waste the little money they earn and usually never make any investment. Finally they complain about being poor thinking it is a cycle they are caught in.

[fruktik]

I concur with that and not only materially, being from a poor home that not only pass done poverty for generation to generational but also pass down the poverty contentment is is very hard for a kid from such home to free themselves from poverty.
It is hard but it is not impossible that the poor kid becomes rich.

Being poor with poor mentality and from a poor nation makes it even very hard if kids can get cheaper quality education even if they are poor they can have the foundation to turn poverty into wealth.

The question is different. Is the government itself interested in its citizens becoming rich? For example, in my country, on the contrary, those in power have been driving people into poverty for many decades. Poor people are much easier to control. They easily fall for television propaganda and believe absolutely every word. And in recent years, education has been destroyed. The number of schools has significantly decreased. All of this is a deliberate policy.

[Plaguedeath]

I come from a poor background and a poor childhood and I have pulled myself out of it simply by using my head. I'm not saying I am this wise guy with high IQ, just that I thought ahead and planned for my life. Now I live comfortably.

I'm happy to hear that, it's really about what we're want and how we can find opportunity around us with the resource we have.

Let me give you a very recent example of how not using your head looks like. Just a couple of days ago I was talking to someone who was complaining about the economic situation and how they are working their asses off (he and his wife both) and at the end of the month they are left with no money. As we talked I learned that they are giving literally half their income (which is a high income to be clear) for rent!!! And I know for a fact that in the neighborhood they live in, they can get a much cheaper deal which would leave them with a lot more money at the end of the month instead of running out.

Unfortunately he's already married, so it's hard to build wealth when we have someone that don't want to life frugal and struggle for few years. Most women only want to live comfortable even though it drains a lot of their income, it's their classic excuse.

That's why I always advice men to build wealth first, then find a soulmate later.

The question is different. Is the government itself interested in its citizens becoming rich? For example, in my country, on the contrary, those in power have been driving people into poverty for many decades. Poor people are much easier to control. They easily fall for television propaganda and believe absolutely every word. And in recent years, education has been destroyed. The number of schools has significantly decreased. All of this is a deliberate policy.

Government not interested to make it's citizen get rich, but they want to make their citizen to be low middle-middle class people where you can buy basic need from full time job salary.

Poor people have higher chance to make problem, that's why government avoid it.

[B-BossMan]

Let me strongly disagree with this notion. Poverty is not always a cycle that you get stuck in without an exit or escape. Poverty is a mindset in most cases where people get stuck in it because they don't want to change and they don't want to use their heads.

I come from a poor background and a poor childhood and I have pulled myself out of it simply by using my head. I'm not saying I am this wise guy with high IQ, just that I thought ahead and planned for my life. Now I live comfortably.

Let me give you a very recent example of how not using your head looks like. Just a couple of days ago I was talking to someone who was complaining about the economic situation and how they are working their asses off (he and his wife both) and at the end of the month they are left with no money. As we talked I learned that they are giving literally half their income (which is a high income to be clear) for rent!!! And I know for a fact that in the neighborhood they live in, they can get a much cheaper deal which would leave them with a lot more money at the end of the month instead of running out.
This is not a vicious poverty cycle that they are in, this is (and I don't like using this term) their own stupidity. Because with that income and with roughly 2 years of saving and investing they could actually begin working on purchasing their own apartment. But 2 years from now they will be poorer and having to pay more rent due to inflation!

That's the key. You have to work hard and wise, then you have to learn money management and save your money to make wise investments to further increase your wealth to continue improving your financial situation.
But instead what happens for most people is that they work hard but dumb. Then they waste the little money they earn and usually never make any investment. Finally they complain about being poor thinking it is a cycle they are caught in.

I love this perspective. Dude, having a good decisions and mindset towards financial goals can easily change your life or move you out of poverty, this poverty of a thing i also see it as personal choices, despite that we are individuals differences there are still some few individuals who are very lazy in nature, when you choose to be poor you will renain poor, get up and find something doing,although I believe that some work hard to earn a living but some of them are still living in an extravagant life styles,spending unnecessarily on something that will not later profit them, took all the opportunities they had for granted,however especially when you are less prevelage have plans and determination for yourself, don't work with any of your local mentality thinking,work with the thinking of how to build your wealth through investments and others things.

[Alone055]

And why didn't the experts also explain where the resources and funds will come from that the poor will invest to break free from the cycle? You explained everything in detail in your post, that how a person can't earn much so they can't save, and when they can't save, they can't invest, so I wonder why it is said that for one to break free from this cycle, they need to invest, but to invest, they need to have the necessary resources, right? If one doesn't have them, how can they invest? If it was that easy for a poor person to invest and break free from the vicious cycle, there wouldn't be so many poor people in this world.

The thing is, poverty could be dealt with but only if the government of a country does something about it. Don't you think that a government can afford to spend some money to provide the poor with the necessary opportunities so that they can at least work hard and try to make their lives better? All they need is a small push, a little help that can allow them to start something, and then their hard work will decide their faith. Their children should be given proper education free of cost, good medical, and proper meals at least twice a day. A government that spends so much money on other things can easily afford to do that but only if they want to.

[7juju]

Often people talk about savings but can one save if you are not employed? If you don't have the capital to set up your business, can you start up any business?This thing call poverty is not very easy to defeat that's why only few percentage of the world population has been able to defeat it. Nobody wants to be poor, that's true, but what can one do when it seems that the ruling class are making it as their duty to keep the masses in poverty. They messaged up the economy and what you only make can barely take care of your immediate needs. At that point should you prioritize savings or survival? How many of us here will be comfortable saving in the bank when you or your child is dying of hunger?