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.
