Most poor families live by hand to mouth existence. They have
very meager resources to the point that they intentionally miss
their children out from school in order for them to work. Their
view of the future is rather in a short-term fashion and they
prioritize survival more than education. This causes in regression
their society and poverty gets starts from square one.
These factors account for their poor management talents,
thus giving the workforce with unskilled labor. This in turn
gives rise to low productivity and therefore no progress is made.
The poor remain to be poor.
B. Poor Health
Poor families often have little or no allowance for good health
within their constrained budgets. Since they lack basic healthcare,
they tend to be sickly and malnourished. Their motivation to
work deteriorates and their drive for a better life diminishes
in the process. The unemployed mounts up, leads to low productivity
and the poor are back again where they started.
C. High Population
Poor people view the attainment of success in a different
light. For them, their salvation from poverty is by having as many
children as they could. They believe that children are the capital
for their progress. Unfortunately, this "responsibility" is passed
on early to children who end up working young with no educational
opportunities and are often end up underemployed. This twisted view
to progress gives way to high population within the country.
With too many people to manage, the resources get even scarcer and
this makes economics a very tough matter to address.
The workforce increases with unskilled workers (high labor
supply), but the demand for such is limited. This causes cheap
labor, and makes the common laborer susceptible to retrenchment
during crises.
D. Low Savings
Poor families don’t have immediate access to the basic
needs because of low income. Since their savings and expenditures
ratio is roughly 1:1, their savings are virtually nil because the
costs of basic needs are quite astronomical for their standards.
The root of the problem comes from low investment in the
country.
There is little industry available, there is also a small
demand for a workforce (low labor demand). Only a fraction
of the population lands with a job (and in most cases are even
underemployed) and this leaves a large pool of unemployed (and
unqualified) workers.
