Causes of Poverty

There are multiple causes of poverty and they still exist around the world today.

• Unemployment: This means that families do not have enough money in order to allow themselves to buy the basic necessities required to survive. IN the UK 42% of families below the poverty line (relative) contain no working members. 

• Income inequality: The gap between the rich and the poor has been an issue nagging governments, the workforce and everyone in general. In all countries following a capitalist movement there is and always will be the issue of some being better off then others, hence why relative poverty exists. In the UK the richest 20% earn 7.2% more that the poorest 20% showing how there is a large gap. 

• Low Paid Work: Even those in work many find themselves to be under the poverty line in the UK due to the unfair wages often implemented by firms as they attempt to cut down on their cost of production. 58% of families that were impoverished but had at least one working member in their family showing that even with work they are still unemployed. 

• Education: This is another key cause. It is the first step in the ladder of success and remains the foundation of almost everything as a basic knowledge is required to do any job successfully. Without required education it leads to unemployment and hence you are trapped in the vicious cycle of poverty.

• Obesity: Although this may seem more secondary, it may result in very serious problems for people. Being overweight means that mobility is often a hindrance and causes unemployment forcing people into poverty.

• Inflation: In UK it currently stand as 0.3% (CPI) which may still be higher than the increase of wage rates at many different jobs. As a result, the cost of living rises faster than people can afford and therefore this leads to poverty as some many not be able to afford the necessities and this may leave them to ' live on the breadline.'

• Disability: Like obesity, this is also another key cause of poverty. It is very common as to why people cannot work and therefore they have no income and the benefits offered by the welfare state may not always be enough to bring them out of poverty given their heavy medical costs.