Published July 14, 2022 | Version v1
Journal article Open

SOCIAL SUPPORT IN THE FIGHT AGAINST POVERTY

Description

Economic laws show that "poverty reproduces poverty." This happens for several reasons. First, poor countries cannot afford to spend enough to maintain affordable, free and high-quality health care and education, and poor people cannot afford to pay for adequate private services. As a result, the less educated and less healthy poor cannot get out of poverty due to the low quality of human potential. Secondly, the poorer the population, the lower the effective demand, the lower the capacity of the consumer market, and, accordingly, the incentives for the development of industry, agriculture, and, especially, the service sector. This, in turn, hinders the development of the economy, reduces budget revenues and, in a closed cycle, the possibilities of social support for the poor. Thirdly, the mentality of people from poor families often differs from the mentality of richer families. For the above reasons, smaller people from poor families have a creative and entrepreneurial mindset. The crime rate among people from poor families is generally higher.

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