“Understanding Economics of Poverty.”
If family is in poverty in one generation (earning $ 2 or less per day), then it’s highly likely that it will continue to live in poverty for rest of generation. Not only that, their poverty is likely to continue in the future generations to come. It’s almost impossible to break that poverty cycle in their life time due to restricted economic opportunities due to lack of education. Poor families deprive their children better living environment and educational opportunities thus affecting their children’s lives as well.Hence, children who grow up in poverty are more likely to stay in poverty as adults and, later on, raise their own children in poverty, reinforcing this brutal cycle of generational poverty.The cycle of poverty is the “set of factors or events by which poverty, once started, is likely to continue unless there is outside intervention”.