Main causes of poverty in the US
Introduction
Poverty in the United States is a complex phenomenon that results from many overlapping factors. Although the U.S. is one of the richest countries in the world, millions of Americans struggle with a lack of basic necessities. In this article, we will outline the main causes of poverty in the US, looking at both structural and individual factors that contribute to the problem.
1. Low Wages and Underemployment
One of the most direct factors contributing to poverty is low wages. Many people work in low-paying jobs that do not provide enough income to meet basic needs.
1. Minimum Wage Jobs:
- The federal minimum wage is $7.25 per hour, which is often insufficient to keep a family above the poverty line. In many states, the minimum wage is slightly higher, but still does not provide enough income to live decently.
2. Lack of job stability:
- Many people work on temporary or part-time contracts with no certainty about their job future. This type of employment often does not offer additional benefits, such as health insurance or paid vacations.
3. Sub-employment:
- Sub-employment is a situation in which individuals work in jobs below their qualifications or with limited hours. This type of situation is particularly common among young people and the elderly, who have difficulty finding suitable jobs.
2. Lack of Access to Education
Education is one of the key factors affecting social mobility and the ability to get out of poverty. Lack of access to quality education leads to long-term difficulties.
1. Educational Inequality:
- Schools in poorer neighborhoods often have lower budgets, inferior infrastructure and less experienced teaching staff. This leads to lower educational outcomes for students, which limits their future career opportunities.
2. Costs of higher education:
- The high cost of higher education is a barrier for many low-income families. Even if young people from poor families get into college, they often drop out due to lack of funds to cover tuition and living expenses.
3. Student debt:
- Even those who graduate from college are often forced to take out large student loans that burden their finances for many years. High levels of debt can lead to difficulties finding stable employment and staying above the poverty line.
3. Lack of Access to Health Care
Health and access to health care are critical to maintaining financial stability. Lack of access to affordable medical services can lead to poor health and long-term financial problems.
1. High Health Care Costs:
- The US has some of the highest health care costs in the world. Even those with health insurance often have to pay high out-of-pocket costs, which can lead to debt and poverty.
2. Lack of health insurance:
- Although programs like Medicaid offer support for low-income people, many people are still without health insurance. Lack of access to regular medical care and preventive health care leads to poorer health and higher medical costs in the future.
3. Mental Health:
- Mental health problems are a common but often overlooked aspect of poverty. Lack of access to therapy and other forms of mental support leads to further deterioration of health and hinders the ability to work and earn.
4. Racial Inequality and Discrimination
Racial inequality and discrimination are deeply rooted in American society and have a significant impact on poverty levels, particularly among ethnic and racial minorities.
1. Employment Discrimination:
- Racial and ethnic minorities, such as African-Americans and Hispanics, often experience discrimination in the labor market. This leads to fewer job opportunities, lower wages and less financial stability.
2. Education inequality:
- Schools in predominantly racial minority neighborhoods are often less well funded and offer a lower level of education. This limits future career opportunities for students from these communities.
3. Justice System:
- Racial minorities are also more likely to be victimized by the justice system. High rates of arrest and conviction can lead to difficulties finding work and maintaining financial stability after serving their sentences.
5. Economic and Structural Factors
Structural economic factors also play a key role in creating and sustaining poverty. Changes in the economy, globalization and economic policies have had a significant impact on poverty levels in the US.
1. Deindustrialization:
- The process of deindustrialization, or the closing of factories and the relocation of production overseas, has led to the loss of millions of well-paying jobs in the industrial sector. This phenomenon has particularly affected regions such as the Midwest and the South.
2. Globalization:
- Globalization has benefited many sectors of the economy, but has also led to an increase in income inequality. Highly skilled workers and professionals have gained from the global market, while those with fewer skills have often lost their jobs or had to work for lower wages.
3. Economic crises:
- Economic crises, such as the Great Recession in 2008, have a long-term impact on poverty levels. Mass layoffs, loss of homes and savings, and long-term unemployment lead to increased poverty.
6. Social and Economic Policy
Social and economic policies in the U.S. also play a key role in creating and maintaining poverty. Policy decisions on taxation, spending on social programs and labor market regulation have a direct impact on poverty levels.
1. Cuts in social programs:
- Cuts to social support programs, such as Medicaid, SNAP and unemployment benefits, lead to a more difficult financial situation for the poorest citizens.
2. Tax policy:
- Tax policies that favor those with higher incomes through tax cuts lead to increased income inequality and make it more difficult to fund social support programs.
3. Lack of labor market regulation:
- The lack of a minimum wage at a level that provides a decent living, and the lack of regulation of job stability contribute to the persistence of low wages and financial instability.
7. Cost of Living
The rising cost of living, particularly in housing and health care, is one of the main factors leading to poverty.
1. Housing Costs:
- In many cities, rental costs and housing prices are rising much faster than wages. The lack of available, affordable housing is leading to an increase in homelessness and poverty.
2. Healthcare Costs:
- High medical costs and lack of health insurance lead to debt and financial hardship. Even those with health insurance often have to pay high out-of-pocket costs, putting a strain on their budgets.
3. Education Costs:
- The high cost of higher education and student debt are barriers for many people who want to improve their skills and career opportunities. Student debt can lead to long-term financial difficulties.
8. Personal and Family Factors
Individual and family factors also affect the risk of poverty. Health problems, emergencies and lack of social support can lead to financial hardship.
1. Events:
- Unforeseen events, such as illness, accident or job loss, can lead to sudden financial difficulties. Lack of savings and social support makes it difficult to cope with such situations.
2. Family structure:
- Single parenthood is one of the main risk factors for poverty. Single mothers often have to combine work and childcare, leading to greater financial difficulties and fewer career opportunities.
3. Social Support:
- Lack of support from family, community and social institutions makes it difficult to cope with financial difficulties. People living in poverty often have limited access to social support networks, making it difficult for them to improve their living situation.
Summary
Poverty in the US is the result of a complex set of factors that include low wages, lack of access to education and health care, racial inequality, economic change, social and economic policies, and individual and family circumstances. Understanding these causes is key to developing effective strategies and policies to reduce poverty. Improving the quality of life of the poorest citizens is not only a matter of social justice, but also a prerequisite for the sustainable development of the country as a whole.
