Charles Edison

"Economics, politics, and personalities are often inseparable." - Charles Edison

Wednesday, September 14, 2011

Record number of Americans living in poverty

When the economic in a country or a society goes down, the unemployment tends to go up and more people lives in poverty. It happens because there are no jobs available for the people and daily supply or inelastic demand value increased from the previous year. An inelastic demand like gasoline has never been stop using and the value increased throughout last year. There were 46.2 million Americans lived in poverty last year which is the highest since it started record. The unemployment percentage rate has been increasing for four straight years. Because adults are living in poverty, the children from the family are also living in poverty which was more than a fifth for last year. Income of the individual person or family is one consider of being poor and be able support himself. Government has been trying to cut off the tax from the people and they have the money to put into the society and increase the demand. Tax cut makes people have more money to spend on whatever they need or want; it helps the economic when they do spend it. Because it’s not always the case that people would spent the money they saved from tax, but people do spend their money if they have jobs. Government would need to have a stronger unemployment insurance system to avoid people losing their job and live in poverty.


Smith said...

If so many people are living in poverty is it a good idea to cut welfare funding? Could you see a better way to spend that money? Or do you believe the expenditure is necessary?
Do you think that children living in poverty are destine to become parents living in poverty?

Wei said...

I don’t like it will be a good idea of to cut welfare funding. People want more money as treats when they do things perfectly. Just like athletics make in championship and win it. Government should try to hold the gasoline low or let the people in poverty have discount for the gasoline. But the expenditure is still necessary. United States of America is in deep debts. Government can’t be the only “company” hiring people. Too less jobs for too many people. Raising child needs a lot of money, but doesn’t mean the children destine to live in poverty. Nothing can stop a person success when the person giving the great effort.