Poverty is a topic that resounds consistently throughout the world. It is an unvarying problem that every country is effected by. Poverty is defined as “the state or condition of having little or no money, goods, or means of support; condition of being poor….”
We often associate poverty with third world countries and other countries where poverty is so flagrantly present. But yet, most of us seem to overlook poverty and its causes in more advanced and well developed countries. Take the United States of America for example. It is the single most powerful country in the world however; it had a poverty rate that exceeded 13% last year, a staggering number of approximately 39.8 million Americans.
There are many economical, sociological, and political reasons why poverty is so prevalent in countries such as the United States; but perhaps one of the less obvious reasons is the idea of capitalism. The United States focuses heavily on enforcing capitalism and as a result, a lot of Americans tend to adopt a “dog-eat-dog” mentality. They have a propensity to focus on getting ahead in life without regards for those they have to step on in order to excel. This mentality is very prevalent in corporate America as well.
In one of my previous blogs I discussed the unfortunate situation the citizens of Blue Star Mobile Home Park in California are currently going through. I shared how Kort and Scott Development firm bought the Blue Star Mobile Home Park and without sufficient notice, jacked up the price of land rent. This in turn made it very difficult for the citizens of Blue Star to continue their residency. Many of the residents are elderly and have no means to obtain other adequate living quarters.
But what does this have to do with poverty?
With a fixed income, medical expenses and burdened with the inability to work, most of the Blue Star residents and others of the like are forced out of their mobile homes and into poverty.
Just like many other major corporations and firms in the United Sates, Kort and Scott Development firm neglected to act moralistically and as a result, caused many innocent people to lose their most prized investments and sink into poverty.
When capitalism is put into the perspective of those who are negatively affected by it, the concept of capitalism doesn’t seem as ideal. For Kort and Scott, capitalism worked out in their favor. For the citizens of Blue Star however capitalism was the cause of their anguish.
To decrease capitalisms’ negative effect on poverty, perhaps the government should intervene. By implementing regulations and limitations on capitalism, the government could virtually protect many Americans from being forced into poverty. This could in turn stimulate the economy thus making way for a more efficient government.
Although capitalism is one of the many causes of poverty, it is a contributing factor that is often overlooked. However one decides to address the issue of poverty in the United States, it is important for them to understand capitalistic thinking and be aware of its contribution to the poverty rate.
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