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What Is The Cause Of Poverty In The United States

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Poverty refers to the state or condition of having little or no money, goods, or means of support. Society often classifies this state as being poor. According to dosomething.org, 805 million people worldwide do not have enough food to eat, and nearly ½ of the world's population lives on less than 2.50 dollars a day. Dosomething.org states that 1.3 billion live in extreme poverty on less than 1.25 a day, 1 billion children worldwide are living in poverty, and 22,000 children die each day due to poverty. These statistics are rather alarming, and the first step to finding a solution to this problem is determining the exact cause. Many would ask how this transpired. The answer to this is the determining factor of what happened and the cause of …show more content…

The federal government and newly formed Housing Administration permitted Owners Loan Corporation to produce "residential security maps." These plans outlined 239 cities around the United States. Many of these were most of the minority based areas. Banks would intentionally deny all mortgage capital to people residing within them. This contributed to many factors, such as the lack of loans to make repairs, less attraction to new families in the area, and an increase in crime. Although this was intended to affect minorities at the time, presently the ongoing effects of the problems have spread throughout the world affecting all ethnicities worldwide.
As the year's progress, the term racial segregation is obsolete and is now referred to as spatial segregation. Spatial segregation is when a significant share of people is condemned to experience a social environment where poverty and joblessness are the norms, where many children are born out of wedlock, where most families are on welfare, where educational failure prevails, and where social and physical deterioration abound. Prolonged exposure to such an environment can drastically reduce this group of peoples' opportunities for social and economic success (Quillian, …show more content…

Demonstrating earning power will create enthusiasm in the private sector, which will aid in the business, creating trillions in capital from private investors, which are far greater than the typical millions generated by successful charitable or government funded programs. The six-phase is the last-mile distribution (Polak et al., 2013). The purpose of this step is to design a delivery process which will employ members of the local impoverished communities in marketing, sales, and in the distribution system which will guarantee the product reaches the most isolated rural areas. The seventh step is known as aspirational branding. Any product that has ever had enjoyed success accomplished great results by creating a positive image that promoted the value of the product, which made individuals appreciate and desire the product. The final stage is Jugaad innovation. This step involves the continued investment in the business through continuous testing and development of goods which will keep the business venture successful (Polak & Warwick,

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