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Purely in Economic context, yes, poverty can set off a vicious circle, culminating in even more poverty. It goes something like this :
Poverty > Less Income > Less Consumption > Low Consumption Expenditure > Low Revenue for firms > Lesser Production > Lesser Income for Factor Inputs > Poverty
Therefore, this vicious circle will keep on incrementing. This can be prevented by suitable injections of capital investment by governments to increase availability of credit in the economy.
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∙ 13y ago
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The least common cause of poverty is undetermined. Several different things can cause poverty for different types of people. Economic instability, natural disaster, and several other things can cause poverty.
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What three factors have contributed to the success of American economy?
poverty cause of poverty
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