Impact of the Economy on Poverty

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Poverty is (obviously) heavily impacted by poor economic growth, both because people who lose jobs or take pay cuts are more likely to fall into the poverty trap, and because programs designed to help the poor escape the poverty trap are another casualty of poor economic growth’s impact on government budgets.  Simply put, less money to go around means that those at the bottom end of the economic spectrum get pushed closer to the brink, and more of them end up stuck there even after the economy recovers.  This ratcheting up of the poverty problem with each economic downturn is one that is deeply troubling to considerations of America’s long-term outlook.

 

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