POVERTY AND UNEMPLOYMENT

POVERTY -UNEMPLOYMENT

POVERTY

In the 18th century, Adam Smith famously defined poverty as the inability to afford “not only the commodities which are indispensably necessary for the support of life, but whatever the custom of the country renders it indecent for creditable people, even of the lowest order, to be without.” In the following century,

Poverty is about not having enough money to meet basic needs including food, clothing and shelter. However, poverty is more, much more than just not having enough money. The World Bank Organization describes poverty in this way: “Poverty is hunger.

poverty, the state of one who lacks a usual or socially acceptable amount of money or material possessions. Poverty is said to exist when people lack the means to satisfy their basic needs. In this context, the identification of poor people first requires a determination of what constitutes basic needs.

Understanding BPL (Below Poverty Line)

• The Government makes use of several parameters to recognize the below-poverty line (BPL) sections. These parameters may differ from state to state and may be different for rural and urban areas. Furthermore, other countries have different parameters and ways to define the poverty line.
• In India, in the year 2011, the poverty line was defined by the Suresh Tendulkar Committee. It was determined on the basis of monthly expenses for food, education, health, transport, and electricity. According to this committee, a person who is spending Rs. 33 a day in urban areas and only Rs. 27 a day in rural areas live below the poverty line.

TYPES OF POVERTY

POOR PERSON

POVERTY TERMS

• Poverty Gap It is the distance between people at the poverty line and people who live below the poverty line
• Headcount ratio It is a measure used in India to measure poverty
• Critical Minimum Effort Professor liebiestien

POVERTY QUESTIONS

UNEMPLOYMENT

Unemployment is the condition of one who is capable of working, actively seeking work, but unable to find any work. It is important to note that to be considered unemployed a person must be an active member of the labor force and in search of remunerative work.

There are a number of reasons for unemployment. These include recessions, depressions, technological improvements, job outsourcing, and voluntarily leaving one job to find another.